What is more important in a financial plan: Insurance or investments?

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Rishabh has just begun his career at a bank. He earns enough to take care of his household expenses. He also has a car, gifted to him by his parents on his graduation. Rishabh has surplus money in his bank account at the end of every month and wants to start investing. His idea is to accumulate a corpus that can be easily accessed if the need arises. He is considering starting an SIP in a mutual fund. However, his parents want him to buy a life insurance policy. Has Rishabh given sufficient thought to all aspects of his financial situation before deciding on his investment plan?Rishabh is doing a good thing by considering investments early in his career. However, it is important for him to first secure his income and savings against the emergencies that may derail his financial stability before he commits to an investment plan. There may be situations, such as a medical emergency or an accident, which require a large sum of money that he may not be able to manage, given his current financial scenario. There may also be circumstances which might affect his ability to even earn. In such a situation, Rishabh may …

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