Benefits of Life Insurance (as a savings/investment medium) Over Real Estate (as an investment medium)

Sr. No.	Attribute		Life Insurance			Real Estate
1	Taxability aspects of maturity/ returns proceeds.		Maturity/Claim is tax free under section 10(10D)			Short term / long term captial gains applicable.
2	Risk Coverage		Risk coverage/protection for the nominee/beneficiary, in case of death.			No risk coverage.
3	Inherent nature of Risk in the savings/investment medium.		No risk associated with this medium. The medium has been tried and tested. The returns are very secure and decent.			Inherent risk associated with this medium. Most of the civil disputes in the civil courts today, pertain to real estate (multiple ownership claims of title deeds/people other than the title owner squatting on the estate, etc.)
4	Tax Rebates under Section 80C		Applicable			Not applicable
5	Protection of asset in case of bankruptcy/court decree for seizure of asset.		Absoute protection for the asset in case of endorsements under MWPA.			No such protection available. The asset could be seized/frozen in case of court decree/bankruptcy/seizure by the financer of asset
6	Liquidity		Liquidity is comparatively higher (subject to policy acquiring surrender value).			Liquidity is comparatively lower. It is not easy to sell real estate in times of emergency, easily.
7	Securing dreams of family		Life Insurance helps a person to be assured of fulfilment of dreams (Child's higher education/marriage) irrespective of whether he is alive till the occasion OR not.			No such security is there in case of real estate. The client can invest only till the time he is alive.
8	Using Life Insurance for planning for post retirement life		The client could plan for a decent life, with dignity and self-respect, with regular flow of income after retirement from work, for himself and wife, till the time of last survivor of the two.			It is certainly not prudent to depend on the real estate built, for the post-retired life. Even assuming that the client sells off his asset after retirement, it may not be easy to say no to children who may want to use the proceeds from the sale of real estate for their own use.
9	Chance for maximising returns		In UL products, the client could use the switching options available, for maximimising returns.			No options available for maximising returns, except depending on the market.