Insurance verses Investment

This has been told again and again and can't be emphasised any more.
Thank to insurance agents around us, who always do their best to skew our decisions for their own interests.

Just use this post to remind you always that Insurance is NOT Investment.

Before I go into more details, just remember that these two things are meant for entirely different purposes and should never ever be mixed.

Financial companies usually take common people for a ride. They have floded the market with a plathora of product which can be confused with investments and insurance. Agents cant be more happy with this costly products. After all they get hefty premiums.

Please try to understand basics and realise how bad it is an idea to consider buying insurance policies like ULIPS etc.(with some investing component).

These products are not only costly, but are not viable for long term investments.
Not only that, buying these high premium products would essentially leave you under-insured as well.

Instead one should consider buying a simple term insurance plans, which are not only cheap but effective enough to provide you ample of coverage. Buying these would give you more room to have high life cover (and this is what an life insurance is meant for). and the left over money can be used for prudent investing
 in real investment products that suits you (based on you risk profile etc..).

Bonus Question: Do you know how much percentage of your premium goes to insurance agent if you buy a policy (specifically a ULIP)?
I am sure the answer would surprise you and would explain why they run after you to sell these products.