5 years back when I was single and needed an investment to reduce tax liability, I bought a life insurance policy. The cover is 10,00000 INR but it has a money back option which pays 100000 INR, every 4 years until the policy matures.
Now in 2016, I am looking to increase the life cover as my liabilities have increased. I have hit my 80C limit and am no longer looking for tax relief. My insurance agent suggests two options:
Term insurance- where cover is high but no returns on maturity.
Pension Plan- which provides a consistent yearly payment after retirement and also a medicare cover amount.
I was personally inclined towards 1, until I came to know that there is no maturity payment involved.
Which one would be the better to invest in?