We need to understand that insurance is a risk product and investment or whatever return comes is just an add-on.
D K Mehrotra, Chairman, LIC says this in an interview with LiveMint
This really is a lucid explanation of insurance. But there are various reactions to this statement.
- The returns are piddly, very less and does not justify putting your money into insurance products.
- This piddly return is better than making losses in the stock markets.
- I put in my money in an insurance product because of my friend/relative/neighbour who is an insurance agent. Please don’t bother me with jargons.
- I get good service from my insurance agent and I care about that rather than returns.
- I really don’t know or care