• 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 Benefits policy"
      0.5 5.0/5 "Blown Away!"
      LIC provide good return and its more secured, they have good endowment plan it has good return, the premium is good enough compared to normal plan it has 10 to 20% extra on endowment policy it has good benefits, it gives good sum assured. tax benefits, financial security unforeseen events.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 20, 2018
    • HDFC Life Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      Hdfc Life insurance service is good. I have taken it for the term period of 35 years and I have one policy with Hdfc Life. They use to update me with new schemes and offers through email. The documentation part has been smooth. It is a average service from Hdfc Life insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • ICICI Prudential Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a term insurance from Icici,the service is good with Icici. I have taken two policy with Icici. They use top update me regularly with the new schemes and offers,I use to get intimations through sms and email. The payments are generally through online,it is a average service from Icici life insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I took 2 to 3 life insurance policies from LIC. These policies are taken directly from the office. I have cash back and long term policy. I have never contacted the customer service but not faced any issues. The online portal was very easy to do the payments. I pay annually around 60 to 80K .
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I am using the LIC service and its very good. I am satisfied with the policy coverage and the plan benefits. I have several policies for the entire family. All are long term policies. I am paying the premium for annum sum around 80K to 1L. The payment was done quarterly through cheque as well as ECS.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Feb 20, 2018
    • Max Life Insurance
      "Good Insurance"
      0.5 5.0/5 "Blown Away!"
      Like all my Life Insurance even this is a Money Back plan. Every 3 years I will be getting a cashback and at the end of term I would be getting a lumpsome amount. I have been paying Rs.15000 as a premium for this Insurance. Customer service of them is pretty good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2018
    • Max Life Insurance
      "Good Investment"
      0.5 4.0/5 "Great!"
      I have taken a policy in this Insurance wherein I would be getting a return at the end of my whole term. I have been paying Rs.25000 as an annual premium for this insurance. The payment is directly linked to my account through ECS. The return expected is around 8%.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the policy is for 21 years ,the plan name is Endowment policy,I pay a premium amount of 15,000.I get a policy coverage of three lakhs,I make payments directly at branch,the executives are good and had explained the policy in detail.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the policy is for 8 years ,the plan name is Endowment policy,I pay a premium amount of 10,000.I get a policy coverage of two lakhs,I make payments directly at branch,the executives are good and had explained the policy in detail.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a Life insurance service from Life insurance corporation of India,for the term period of 15 years. I have six policy's with Life insurance corporation of India. The payments where through cheques,they never update me with any offers or schemes. It is a average service from Life insurance corporation of India.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have a Life insurance service from Life insurance corporation of India. I have taken two policy with Life insurance corporation of India one is Bheema gold ,jeevan saral policy. The term period is for 20 years both and the payments are through online. They use to update me regarding their new schemes and offers. It is a excellent experience with Life insurance corporation of India.
      Was this review helpful? 0
      , noida
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 6-7 years and it is a long term policy. The tenure of this life insurance policy is 20 years. I pay my premium once in 3 months through cash and i am convenient with the payment options which they are giving. The name of the policy is Jeevan Anand and i am happy with the coverage and benefits of this policy.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Traditonal and Turst worthy"
      0.5 5.0/5 "Blown Away!"
      LIC was started when I was a student, my parents gifted me this life insurance. At the time premium amount was Rs.150, finally I got 1.50 lakh with bonus interest around 75,000. It was a great surprise for me. Then I took LIC policies from end, each has different tenure. Plan name called Bheema gold, endowment policy and child plan.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I am having LIC policy from last 2 years and is ti is a endowment policy. The tenure of this life insurance policy is 15 years, I pay my premium on monthly basis through net banking and i am convenient with the payment options which they are giving. I am also happy with the coverage and benefits of this policy.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      I have totally taken five policy's with Life insurance corporation of India, for the term period of 15 years. The payments are through cheques. They used to update me regarding new schemes offers. It is a good experience with Life insurance corporation of India.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 14, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 12 years and it is a long term policy. The tenure of this life insurance policy is 20 years. I pay a premium of Rs 7000 on annual basis through direct payment and i am convenient with the payment options. I am happy with the coverage and benefits of this policy.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 14, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I hold a long term policy with LIC from last 4 years and the tenure of this life insurance policy is 20 years. I pay my premium payments once in a year by net banking. I am also convenient with the payment options which they are giving. I have a coverage of more than Rs 5-6 lakhs and i have filed IT returns for tax benefits.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 13, 2018
    • LIC Life Insurance
      "Trusted and Recommendable"
      0.5 5.0/5 "Blown Away!"
      LIC is very reliable and its safe for investment, I used to make the premium around Rs. 1800 quarterly basis it has total term of 15 years. Then I get the sum assured of Rs. 1.5 lakh. The policy has bonus interest but I took loan from that amount, insurance covers accidental cover and financial security for unforeseen events.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 13, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 5.0/5 "Blown Away!"
      I am having a life insurance policy with LIC from last 3-4 years and it is a long term policy. I pay my policy premium once in 3 months by cash and sometimes net banking. I am convenient with the payment options for this policy. The tenure of this life insurance policy is 23 years. I am satisfied with the coverage and benefits of this policy.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 13, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 15 years and it is a long term policy. The tenure of this life insurance policy is 20 years and i pay my premium once in 6 months by cheque. I am convenient with the payment options which they are giving. I am happy with the coverage and benefits of this policy.
      Was this review helpful? 0
      , pune
      Reviewed on Feb 13, 2018
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