• 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 policy"
      0.5 4.0/5 "Great!"
      I have a LIC policy from last 13 years and it is a long term policy. The tenure of this life insurance is for 20 years. I pay my premium on yearly basis through net banking and i am convenient with the payment options. I am happy with the returns and benefits of this policy.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 25, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 4.5/5 "Excellent!"
      I have a life insurance policy with LIC from last 10 years and it is a long term policy. I am happy with the coverage value of this insurance policy. I pay my premium once in a year by cash and i am convenient with the payment options. The maturity period for this policy is after 20 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 25, 2018
    • LIC Life Insurance
      "Life insurance with LIC"
      0.5 5.0/5 "Blown Away!"
      I have a couple of policy with LIC, and i have to pay a premium of 15000 yearly. I have an endorsement policy, life insurance which will provide the benefit after the maturity period. And the term insurance were the nominees will get benefited.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 25, 2018
    • Max Life Insurance
      "BEST"
      0.5 5.0/5 "Blown Away!"
      It is a term insurance that i am using from the max. I am using since 1 year. The documentation i have done it through the on line. Payment i do through the on line for yearly once. Premium is very normal when compared to the others. The tenuity is for 40 years.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 23, 2018
    • SBI Life Life Insurance
      "Better Policy"
      0.5 5.0/5 "Blown Away!"
      Total tenure of the policy is 20 years. It is a cashback policy. Every 5 years i will get 10%. Every 5 years they will give the cashback policy. Once in 5 years, my number will update in their system, i have to give a blank cheque. At the end of th term , I would get bonus points I guess.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 13, 2018
    • Aegon Life Life Insurance
      "Poor Service"
      0.5 1.0/5 "Really Bad"
      I have a term insurance Policy with the Aegon life. I canceled this policy. There was a mess with the payments and documentations. I will not recommend their services to anyone. They need to treat their customer in a smooth manner. Overall it was not a good experience with them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 12, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 3 years and it is a long term policy. I am happy with the returns and tax benefits of this policy. I pay my premium once in a year through net banking and i am convenient with the payment options. The maturity period for this policy is 20 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 11, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a life insurance policy with LIC from last 4-5 years and it is a long term policy. I am happy with the coverage and returns of this policy. I pay my premium once in a year and i am convenient with the payment options. The maturity period for this policy is 20 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 08, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a LIC Policy from last 6-7 years and it is a long term policy. I am happy with the coverage and returns of this insurance policy. I will also get good tax benefits in this policy. The name of the policy is Jeevan Anand so i pay my premium once in 6 months by cheque. The maturity period for this loan is 20 years.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jun 08, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 5 years and it is a long term policy. The tenure of this life insurance policy is 15 years. I pay my premium once in 3 months by cash and i am convenient with the payment options. I am happy with the coverage and returns of this policy.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 08, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 6 years and it is a long term policy. The tenure period for this policy is for 25 years. The policy name is Jeevan anand and i pay my premium on monthly basis through ECS and i am convenient with the payment options. I am satisfied with the returns of this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 06, 2018
    • Aviva Life Insurance
      "Policy is good but the premium is high"
      0.5 5.0/5 "Blown Away!"
      Aviva term insurance coverage upto the age of 50. I used to make the payment through net banking. Last year onwards i register my credit card to auto debit the money from my card. I have taken this policy in the year of 2012. I'm paying the annual premium of Rs. 19900. Sum assured amount of Rs. 50 Lakhs.
      Was this review helpful? 0
      , madurai
      Reviewed on Jun 06, 2018
    • ICICI Prudential Life Insurance
      "Claim settlement ratio is good in ICICI"
      0.5 5.0/5 "Blown Away!"
      The coverage is good. Actually I'm having four policies. Two for kids and 1 for me and my wife. I have a Term insurance policy on my time. I used to pay Rs. 16000 per year. I have to this term insurance for 35 years. The premium and policy will get covered upto 75 years. Total sum assured amount is 75 Lakhs. I nominated my wife as nominee. This policy covers critical illness.
      Was this review helpful? 0
      , madurai
      Reviewed on Jun 06, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I hold a life insurance policy with LIC from last 4 months and it is a long term policy. I am happy with the returns of this policy and i get good tax benefits. I pay my premium once in a year through net banking and the maturity period for this policy is after 20 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 05, 2018
    • HDFC Life Life Insurance
      "Good Policy"
      0.5 5.0/5 "Blown Away!"
      I have a term insurance with HDFC LIFE from last 3 years and it is one of the good policy to use. I pay my premium once in a year through net banking services and i am convenient with the payment options. I am happy with the coverage and returns of this policy.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jun 04, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I hold a life insurance policy with LIC from last 7 years and it is a long term policy. The tenure of this life insurance policy is 15 years. I pay my premium once in 3 months through cheque and the payment options are convenient for me. I am happy with the returns of this policy.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 01, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a life insurance policy with LIC from last 1.5 years and it is a long term policy. I am happy with the coverage and returns of this policy. I pay my premium once in 3 months through direct payment and i am convenient with the payment options. The maturity period for this policy is after 15 years.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jun 01, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I hold a life insurance policy with LIC from last 12-13 years and it is a long term policy. I pay my premium once in a year by cheque and i am convenient with the payment options. I am satisfied with the coverage and returns of this policy. The maturity period for this policy is 15 years.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on May 31, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I hold a life insurance policy with LIC from last 10 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 direct payments and i am convenient with the payment options. I am happy with the coverage and returns of this policy.
      Was this review helpful? 0
      , chennai
      Reviewed on May 31, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 7 months and it is a long term policy. I am satisfied with the coverage and returns of this policy. I pay my premium once in 6 months through online payment. The name of the policy is Jeevan saral and the maturity period of this policy is 15 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 31, 2018
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