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  • Term Insurance vs Endowment Policy

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    Fees & Charges

    Promised Interest Rate

    Plan Benefits

    Payment Options

    Policy Coverage

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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
      "Due reminder should be timely"
      0.5 4.0/5 "Great!"
      I do have one or two life insurance policy with LIC. It was taken long back, its a long term policies. I am paying around 5000 quarterly. It is a conventional policy and I will getting a maturity benefits. I am making the payment through online. The premium reminder update is not that good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good "
      0.5 5.0/5 "Blown Away!"
      I have taken 2 life insurance policies with HDFC Life, one was taken in the year 2007 and other is year back. I am very much satisfied with the policy coverage and benefits. They have introduced term plan and giving partial disability benefits. I am paying the premium of 3700 rupees monthly through ECS.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Its Trusted"
      0.5 4.0/5 "Great!"
      Major factor I selected the LIC its govt one and its trusted one. The premium I used pay around Rs. 44k for one year for one policy. its a long term. Agent wont respond properly, they interested to sell the policy then they wont respond it. I need to work on the beneficial part.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good policy to have"
      0.5 5.0/5 "Blown Away!"
      I hold a term insurance with HDFC worth of Rs. 15 lakhs. I opened a term insurance in the year of 2013. I have been paying the premium of Rs. 6174. I have chosen the annual payment mode. Total tenure period of the policy 15 years. This is tax benefitable policy. Since I'm a existing customer of HDFC, i have chosen the same company.
      Was this review helpful? 0
      , dehradun
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      I have taken my endowment policy with Life Insurance Corporation of India. My first endowment policy was taken in the year of 1995. I used to pay the premium of Rs. 3000 and i have chosen the monthly payment mode. My friend who is working in LIC has referred me about this Endowment policy. This is a tax benefitable policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good Insurance company"
      0.5 5.0/5 "Blown Away!"
      I am using LIC policy for very long time, its trust worthy. I am not sure about the premium. But its economical for the long term policy which I taken. They have different payment option to make my premium. They have life cover and accidental life.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 12, 2018
    • Exide Life Insurance
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      The customer service is very good with the EXIDE LIFE INSURANCE where i have purchased the life insurance policy. I have been using it from past two years and it is a short term policy where the maturity period is for short term policy of five years.
      Was this review helpful? 0
      , anantapur
      Reviewed on Nov 11, 2018
    • LIC Life Insurance
      "GOOD SERVICE"
      0.5 4.5/5 "Excellent!"
      I have taken the MONEY BACK policy with the LIFE INSURANCE CORPORATION OF INDIA, the premium i pay on monthly basis for this policy where i have pay my premium for ling term. The maturity period is for 20 years for this life insurance policy.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 11, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have a life insurance policy with LIC from long time and it is a long term policy. I pay my premium once in a month through ECS and i am convenient with the payment options. I am happy with the returns and benefits of this policy. The maturity period of this policy is 20 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 09, 2018
    • LIC Life Insurance
      "Good for tax and insurance"
      0.5 3.5/5 "Pretty good"
      I have Jeevan bhima policy, I make the premium around Rs.5000 to 7000 it has the total term of 25 years. I should pay the premium upto 22 years later on I get the benefits for the entire tenure. LIC gives tax benefits and also life cover on insured person.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 09, 2018
    • PNB Metlife Life Insurance
      "Good"
      0.5 4.5/5 "Excellent!"
      Recently I have taken term plan with Punjab Met Life. Monthly have to pay 700 rupees as a premium. It will be auto debited from the HDFC Bank card. I have to pay till 40 years. My family will be getting a good benefits. The policy coverage is 50L. I am satisfied with the benefits. The customer service is good. Go with the benefits of medical life.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Nov 08, 2018
    • LIC Life Insurance
      "Better"
      0.5 5.0/5 "Blown Away!"
      I have taken 2 policies with LIC recently. It is a long term policies, chosen money back because of the better benefits, It was taken through agent and the payment will be quarterly. The premium is 15K, the customer service is well. Am happy with policy coverage and plan benefits. The maturity period is 20 years, after every 5 years I will get reimbursement.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 03, 2018
    • Max Life Insurance
      "GOOD"
      0.5 4.0/5 "Great!"
      I have purchased the TERM POLICY with the MAX LIFE INSURANCE the documentation for taking the policy is easy and good. I have been using from last three years the maturity period of this policy is for 25 years. The premium i pay yearly once also the service is good.
      Was this review helpful? 0
      , noida
      Reviewed on Nov 03, 2018
    • Bajaj Allianz Life Life Insurance
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have purchased my life insurance policy with BAJAJ ALLIANZ LIFE INSURANCE and i am using it from last few years. The maturity period is for long term policy which gives the coverage for self. The premium i pay for yearly once for this insurance policy.
      Was this review helpful? 0
      , kakinada
      Reviewed on Nov 03, 2018
    • LIC Life Insurance
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken 2 life insurance in LIC, name of the policies are money back and term insurance. Totally duration is 29 years and the payment was done through net banking. The services are excellent in LIC, The policy coverage and plan benefit is excellent. I have chosen long term policies and it was through agent before 2 to 3 years ago,
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 03, 2018
    • LIC Life Insurance
      "Good To hold"
      0.5 5.0/5 "Blown Away!"
      I have LIC policy, the plan which I taken is money back for the term 24 years. Every five years I get the amount of Rs. 10,000. I can get the total coverage around Rs. 2 lakhs after the total term. LIC do have tax beneficial and life cover for natural death.
      Was this review helpful? 0
      , bhubaneshwar
      Reviewed on Nov 02, 2018
    • LIC Life Insurance
      "Benefical part need improvment"
      0.5 3.5/5 "Pretty good"
      There agent are existing any where in the market, the payments option are also convenient. But beneficial part are very average they should improve on that part for the long term policy, any how its good for the tax beneficial part and financial security for unforeseen events.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 02, 2018
    • ICICI Prudential Life Insurance
      "Good For investment Purpose"
      0.5 5.0/5 "Blown Away!"
      I invested on Well builder plan its ULIP cum life insurance with ICICI prudential. Really the plan is amazing, as of now I just keep paying the premium then I get the return after five years based on the market price. Now the growth is fine, the bank invested 65% of amount in equity and remaining on govt security, total term of the policy for 10 years then I get the policy cover around Rs. 20 lakhs.
      Was this review helpful? 1
      , delhi
      Reviewed on Nov 01, 2018
    • ICICI Prudential Life Insurance
      "Good For investment Purpose"
      0.5 5.0/5 "Blown Away!"
      I just making premium I don't know how its going to work out in term plan, if I go out of the world my parents will get the life cover of Rs. 40 lakhs. But I get some bonus amount every five years, its insurance cums ULIP plan. I used to make the payment through standing instruction.
      Was this review helpful? 0
      , delhi
      Reviewed on Nov 01, 2018
    • LIC Life Insurance
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using my Term insurance with Life insurance corportion of India, there service was good, like while taking insurance they have explain me the policy clearly, the premium i use to pay for 6 months around 30,000 and i pay it through on line only, till now my experience with LIC was good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 01, 2018
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