Mutual funds offer a way for a group of investors to effectively pool their money so they can invest in a wider variety of investment vehicles and take advantage of professional money management through the purchase of one mutual fund share.

A life insurance policy is actually a contract with a insurance company. A lump sum amount is provided, in exchange for premium payments, known as the death benefits, to the nominees or beneficiaries upon the death of the insurer.

Health insurance policy takes care of miscellaneous costs like medical tests, doctor consultation fees, medicines, hospitalization charges, and even post-hospitalization care. The medical care provider is paid directly by the insurance company.