Investment Without Insurance = ZERO

Investment and Insurance go hand in hand. Many of us try to explore different options of investment but give very little importance to insurance. However investment planning without giving due consideration to insurance is a zero sum game. Let’s take a look at this real life example.

Amol and Vikas are two friends earning a salary of around Rs. 60,000 per month. Both are investment savvy and invest regularly in Mutual Funds through SIP (Systematic Investment Planning). They have decided to keep aside Rs. 30,000 per month to make their future secure. They selected an excellent mutual fund and decided to invest regularly.

Vikas started investing the entire amount in the mutual fund where as Amol decided to invest a part of the amount in the same mutual fund and the remaining amount in a term insurance and a medical insurance plan. After 10 years Vikas’s investment grew to 70 lacs with an annualised return of 12%. Amol also earned a decent return but it was little bit lesser than Vikas since a small portion of his money went into insurance plans.

One day uncertainty struck Vikas. He suffered a massive heart attack and was hospitalized. His family had to spend 10 lacs on his critical illness. But all these efforts were futile…… Vikas was no more!

Apart from the shocking personal loss, Vikas’s family now had to face his liabilities too (home loan, car loan, etc..) They had to liquidate all his investments in order to repay the loan amount. Even though he had made a proper investment, it turned out to be worthless! Most of his savings were spent on his hospital bills and towards repayment of the loans.

If only he would have opted for the medical insurance, all medical expenses would have been taken care off by the medical insurance company. Also his family would have received the insurance amount, had he opted for a term insurance. In the end, his entire investment of 10 years just vanished.


Life is very uncertain. When you plan for a better future, be ready to tackle uncertainties too. Insurance is one option which helps you to take care of such uncertainties.

So next time, when you plan for any investment, make sure to prioritize your insurance need before investment.