Insurance is the foundation of good financial planning. With an evolving life insurance market, companies are offering several plans ranging from protection and savings to investments and wealth creation.
Amongst these, term insurance and whole life insurance offer the most basic and comprehensive life insurance coverage respectively. Let us learn about their distinct features and benefits so that you can identify the best fit.
Term Life Insurance
The simplest form of life insurance, a term plan offers a lump sum paid as Death Benefit (Sum Assured). The coverage is available for a limited term of premium payment years. With a low premium and substantial coverage amount, this policy is a must-have. However, there are no Maturity Benefits.
Whole Life Insurance
Whole life insurance offers both, a death benefit as well as savings benefits. The policy lasts for your whole life and you get a lump sum when you decide to discontinue (Surrender) the policy. Whole-life plans also offer the flexibility to choose your premium payment frequency and withdrawals.
One such plan is the Max Life Whole Life Super Plan which offers guaranteed protection till the age of 100 years with flexible premium payment terms and 100% Maturity Benefit.
Before you buy any of these policies, you need to ask yourself which would benefit you more basis your needs.