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  • Term Insurance vs Endowment Policy

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    In today's fast-paced world, there is no certainty with regards to what an individual might have to face in future. Various financial tools in the market take care of this aspect by offering investment and saving avenues to customers so that even in the face of adverse events, financial adversity does not become a challenge.

    What is Term Insurance?

    Term insurance is a financial protection tool that offers protection cover for a specific number of years. During this term, if the policyholder dies, then his family is entitled to receiving a death benefit in terms of a pre-determined lump-sum amount.

    What is an Endowment Policy?

    An endowment policy, unlike term insurance is an insurance cum investment instrument that offers both protection in times of crisis and simultaneous growth of money invested. The life cover offered is known as the sum assured of the endowment policy.

    Difference Between Term Insurance and Endowment Policy

    Term Insurance

    Endowment Policy

    A pure risk cover instrument for uncertainties of life

    A combination product of both insurance plus investment

    An absolute must financial tool for everyone

    An investment tool for customers who wish to grow their money while availing protection too

    A necessary offering for those who have dependents

    A product that can be chosen as per preference of customer

    No maturity benefit is associated with term insurance plans

    Maturity benefit is associated with endowment policy. This benefit is paid at the end of the policy period

    Sum assured as death benefit is mostly 20 times the annual income of the policyholder

    Sum assured as maturity benefit is not great but sufficient to be used as good investment option

    Only death benefit is offered by term insurance

    Death and maturity benefit both are associated with endowment plans

    Which One is Better, Term Insurance or Endowment Plan?

    The need for insurance should not be mixed with the goal to invest and grow your money. Hence, insurance instruments and endowment plans should be availed by an individual depending upon his/her financial goals. Financial experts are of the view that insurance should not be mixed with any other financial goal. Hence, pure insurance products like term insurance have an edge over endowment plans.

    Endowment plans invest your money in the stock market and various other instruments and hence their returns are tied to the movement of the market. This means that there are no guaranteed returns for endowment plans and as such there may be times when an endowment plan offers returns way below than expectations. Also, the premiums for endowment plans are mostly higher than those which are paid towards term insurance. Experts suggest not to mix insurance and investment so that returns reaped are effectively more.

    Endowment plans invest your money in other instruments and hence charge a higher premium that goes towards insurance as well as investment. These plans also deduct mortality and other charges and return only the amount that remains, to the policyholder, on maturity. Often, the return offered by endowment plans is very low as compared to the premiums paid towards the same.

    It is advisable to go for a pure insurance plan in case the primary need is to avail protection. Similarly, for those who already have a term insurance plan in place and are looking for investment avenues, endowment plan could be a good option. Since, pure term plans come at really low premiums, buying the same for protection purposes is the best strategy.

    Term Insurance vs Endowment Policy Reviews

  • Page 1 of 50 1 2 3 4 5
    • LIC Life Insurance
      "Good in benefits"
      0.5 4.5/5 "Excellent!"
      I have also taken a endowment policy from LIC. The policy benefits are good. The sum assured is also good. The benefits was also provided to me immediately. It has been a good experience and it is secure to get the policies from this company. Good overall.
      Was this review helpful? 0
      , vadodara
      Reviewed on Sep 18, 2018
    • Birla Sun Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with Birla Sun Life from last 10-12 years and it is a long term policy. I pay a premium of Rs 6000 once in 6 months and i am convenient with the payment options. The tenure period for this insurance policy is 20 years.
      Was this review helpful? 1
      , mumbai
      Reviewed on Sep 14, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      My life is insured with LIC from last 12 years and it is s long term policy. The name of the policy is Jeevan anand and the tenure period for this policy. I pay my premium once in 3 months through net banking and the maturity period for this policy is 16 years.
      Was this review helpful? 2
      , pune
      Reviewed on Sep 12, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 1 year and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 3 months through net banking and i am convenient with the payment options. The maturity period for this policy is 15 years
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 12, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 3.5/5 "Pretty good"
      I have a life insurance policy with LIC from last 4 years and it is a long term policy. I am satisfied with the coverage and returns of this insurance policy. I pay my premium on yearly basis and the payment mode is Auto debit. The tenure period for this policy is 15 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 12, 2018
    • Max Life Insurance
      "Good services overall"
      0.5 4.5/5 "Excellent!"
      Max Life Insurance was pretty quick in the response for the term plan. The plan riders come up with good set of critical illness. The insurance procedure was quiet well described and executed. Just wish to add one point for the medical test center guys, please try to maintain cleanliness of the instruments because it will help in creating a hygienic impression of the process.
      Was this review helpful? 3
      , ahmedabad
      Reviewed on Sep 10, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I hold a life insurance policy with LIC from last 20 years and it is a long term policy. I pay premium once in 6 months through online and i am convenient with the payment options. I am happy with the returns and benefits of this policy and maturity period is after 25 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 05, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 5-6 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium on yearly basis through online and i am convenient with the payment options. The tenure period for this policy is 20 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 05, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I am having life insurance policy with LIC from last 10-12 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 3 months through credit card and i am convenient with the payment options. The maturity period for this insurance policy is 20 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 05, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 1 year and it is a long term policy. The tenure period for this life insurance policy is 25 years. I pay my premium once in 6 months by net banking. I am happy with the returns and benefits of this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 31, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 1 year and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 3 months through direct payment and i am convenient with the payment options. The tenure period for this policy is 18 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 31, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have life insurance policy with LIC from last 4 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 6 months through net banking and i am convenient with the payment options. The name of the policy is Jeevan anand and the tenure period is 20 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 30, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have life insurance policy with LIC from last 3.5 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 3 months by cash and i am convenient with the payment options. The name of the policy is Jeevan anand and the tenure period is 20 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 30, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 16 years and it is a long term policy. The tenure period for this life insurance policy is 20 years. I pay a premium of Rs 11000 on yearly basis by net banking. I am happy with the returns and benefits of this policy. The tenure period for this policy is 30 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 29, 2018
    • SBI Life Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with SBI LIFE from last 4-5 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium on annual basis and the premium amount gets auto debited from the salary account. The tenure period for this policy is 15 years.
      Was this review helpful? 1
      , new delhi
      Reviewed on Aug 29, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have life insurance policy with LIC from last 11 years and it is a long term policy. I am happy with the returns and benefits of this policy. I pay my premium once in 3 months by cash and i am convenient with the payment options. The maturity period for this policy is 25 years but i have to pay premium for 16 years.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Aug 29, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 2 years and it is a long term policy. I am happy with the returns and benefits of this policy. I am not aware of the premium amount as my company pays it. The maturity period for this policy is 20 years.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Aug 29, 2018
    • HDFC Life Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have taken a term plan with HDFC LIFE from last 1 year and it is one of the best policy. I pay my premium for Rs 16000 every year through net banking and i am convenient with the payment options. The tenure period for this policy is 40 years and benefits are good in this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 28, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 4 years and it is a long term policy. The name of this policy is Jeevan anand and the tenure period for this life insurance policy is 20 years. I pay my premium on yearly basis by cash and returns are very good in this policy.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 27, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a life insurance policy with LIC from last 3 years, and it is a long term policy. The name of the insurance policy is Jeevan Anand. I pay my premium once in a year the amount is auto debited. I am happy with the returns and benefits of LIC insurance policy.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Aug 27, 2018
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