FINANCIAL SECURITY AND WEALTH CREATION: A CRITICAL STUDY OF INSURANCE AS AN INVESTMENT TOOL AMONG YOUNG WOMEN INVESTORS IN NAVI MUMBAI

This research paper critically examines the role of insurance as an investment tool for young investors in Navi Mumbai. Traditionally, insurance has been viewed primarily as a risk management instrument aimed at providing financial protection against uncertainties such as death, illness, or disability. However, over time, insurance products—particularly those offered by private insurers—have increasingly been marketed as investment avenues promising wealth creation, tax benefits, and disciplined savings. The study analyses whether insurance products, especially Unit Linked Insurance Plans (ULIPs) and traditional endowment policies, are suitable investment options for young individuals when compared to alternative financial instruments such as mutual funds, fixed deposits, and Public Provident Fund (PPF). Using secondary data, existing literature, and conceptual analysis, the paper evaluates returns, risk, cost structures, liquidity, and suitability of insurance-linked investments. The findings indicate that while insurance products provide financial security and tax benefits, they are generally inefficient as primary investment tools due to high charges, low liquidity, and relatively lower net returns. The paper concludes that young investors in Navi Mumbai should adopt a separation strategy—using insurance for protection and market instruments for investment—to achieve better long-term financial outcomes.