How Term Insurance is different from Mutual Fund?

Term insurance and mutual funds are two completely different financial products that serve different purposes.

Term insurance is a type of life insurance that provides financial protection to the policyholder's family in the event of the policyholder's death during the term of the policy. If the policyholder dies during the term of the policy, the insurance company pays a lump sum amount to the policyholder's family, which can be used to meet their financial needs such as paying off debts, meeting living expenses, etc. If the policyholder survives the term of the policy, the insurance company doesn't pay anything.

On the other hand, mutual funds are a type of investment product that pools money from several investors and invests that money in various financial assets such as stocks, bonds, and other securities. The mutual fund manager manages the fund and makes investment decisions on behalf of the investors. The returns on mutual funds are based on the performance of the underlying assets in which the mutual fund has invested.

To summarize, term insurance provides financial protection to the policyholder's family in the event of the policyholder's death during the term of the policy, while mutual funds are investment products that offer returns based on the performance of the underlying assets in which the mutual fund has invested.