No matter how much you make, you need to take care of these two things in life - meeting your goals while keeping up with rising costs and protecting your family's financial future. Life insurance serves both needs in a very effective way. It is one of the most important financial investments you will make in your lifetime.
The market is flooded with many types of life insurance policies. Among these, term insurance and whole life insurance offer the most basic and comprehensive life insurance coverage.
By understanding how these two types of life insurance policies differ, you can make an informed decision and choose the one that best fits your needs.
Let's have a look! ?
Term Insurance
Term insurance is the purest form of life insurance that offers financial protection to your loved ones against life’s uncertainties. By paying your premiums on time, you will be able to ensure that they receive a fixed sum of money if you pass away during the policy period.
The claim amount can help your dependants fulfil their financial goals, meet everyday expenses, settle existing loans and liabilities, pay for your child's education, etc.
However, in case you survive the policy period, you won't receive any benefits. This is because term insurance is a pure risk cover.
Whole Life Insurance
Whole life insurance, as its name implies, covers you throughout your lifetime (until you are 99-100 years old) and ensures guaranteed financial security for your loved ones. It is a great way to leave a financial legacy, a parting gift for them.
It provides guaranteed# returns in the form of:
- Death Benefit - If you pass away during the policy period, your family will receive the insurance cover amount as a death benefit.
- Maturity Benefit - If you survive the policy period, you will be paid the maturity benefit. The maturity age in whole life plans is usually 99 years.
1800-270-7000
February 17, 2025
5 mins read
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