Are there any cases where one buys "insurance" products for the purpose wealth creation?

It is done usually so that the insured can use the cash freed up (legacy) for other investment purpose.

So the rate of return is very important

Hi,

Well, there are a handful cases.

Sometimes, people find it convenient to buy an insurance product with investment elements in it like those ILP plans to take care of both- insurance and investment.

But an investment product and insurance product serves different purposes. An investment product like a mutual fund helps you to grow or create wealth to meet your goal, whereas an insurance plan is meant to protect you against an unforeseen eventuality.

When you mix your insurance and investment needs, it results in inadequate life insurance cover and lower returns on your investments. But by doing it, we are challenging the sole purpose of life insurance (proper cover) or any investment scheme (attractive returns).​​​