Droplet's Axe the Tax - Tip#3
We have been reasoning out with our readers about the mistakes that they do in Tax Saving process.. In keeping with the series, this week we write about the Heinous Tax saving crime of buying a Life Insurance policy. A lot of us consider Insurance as an good investment only and only because it gives a "Guaranteed return" Let us do a small exercise now, out of the two investment opportunities given below, Select one. Option 1 - You give me 1 Gram of Gold and I give you back 1 Gram gold at the end of 15 Year. Option 2 - You Invest INR 7000 and I give you back INR 48000 back at the end of 15 year. There is good chance that most of you would choose option 2 since you get almost 7X of our investment but in Option 1, you get only what you invested! NOW, HOLD ON! What if I tell you both are one and the same, Will you believe ? There is a very good chance that you won't. Of all the Illusions that we are duped with - "Insurance gives us guaranteed returns"