Archive · 3 Aug 2025
LinkedIn Post Sparks Debate on Low Insurance Investment Returns
Imagine you put money into an insurance policy hoping it will grow.
But after 15 years, you only get back a little more than you put in.
Kirtan Shah explained how this can happen with some insurance plans.
He said it's better to buy insurance separately and invest your money elsewhere, like in a PPF account, for better returns.
This way, you could get the same insurance coverage and tax benefits, but with a higher return on your investment.
Many people agreed with him, pointing out that combined insurance and investment products often don't perform very well.
A LinkedIn post by Kirtan A. Shah sparked a debate about investment returns from insurance policies.
Shah shared a real-life example of low returns from an insurance policy after 15 years of investment.
The policy provided a 4.55% return, leading Shah to consider it a 'scam'.
Shah advocates for separating insurance and investment for better returns.
Many users agreed with Shah's analysis in the comments section of the LinkedIn post.
- Who
- Kirtan A. Shah, and other users on LinkedIn.
- What
- A discussion about the low returns from insurance policies marketed as investments.
- When
- The LinkedIn post was recent, but the example investment was made 15 years prior.
- Where
- The discussion took place on LinkedIn.
- Why
- To highlight the potential downsides of insurance policies as investment vehicles and suggest alternative strategies.
Kirtan A. Shah's View
Implicitly: Traditional Insurance Companies
Investment Strategy
Kirtan A. Shah's View
Combined insurance and investment products offer lower returns.
Implicitly: Traditional Insurance Companies
Insurance can be a good long-term investment.
Agent Commissions
Kirtan A. Shah's View
Agents make high commissions, impacting returns for policyholders.
Implicitly: Traditional Insurance Companies
Agents provide value and are compensated accordingly.
- Investment Type
- Insurance Policy
- Investment Period
- 15 years
- Annual Premium
- ₹3,187
- Total Investment
- ₹47,805
- Maturity Amount
- ₹69,530
- Return on Investment
- 4.55%
- Alternative Investment
- Public Provident Fund (PPF)
- Term Insurance
- ₹2 lakhs