Term insurance is best.

Term insurance is best form of insurance if you are young.

People are running after ULIPs and other investment linked insurance plans and agents push them as they get good cut on these.

Don’t mix up investment with insurance.

Let say you pay annual premium for Rs 20000 for an investment linked insurance which will give you around 5 lakh of sum assured (have you ever thought, what will be the value of 5 lakhs after 20 years ). This will give you lets say 8% annual return after policy ends.

Now, I take this in a different way, pay 10,000 for any term insurance (in 10k, you will get insurance for around 40 lakhs as sum assured). Invest rest 10k in ELSS (Equity linked mutual funds) which will give you avg 15% yearly return (Though its depandant on stock markets, but over a longer period of time, 15% is expected).

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