Here is a comparison of key features between term & life insurance:
 

Life insurance has evolved into a crucial tool for the protection of family members who are financially dependent on us. In recent years, there has been a marked increase in the number of people purchasing life insurance to create a financial safety net for their loved ones.
 

However, there are different types of insurance plans available that can seem confusing to many people. One such type is term insurance.
 

What is Term Insurance?
 

Term insurance is a basic type of life insurance that offers coverage for a fixed duration and compensates the nominee in the event of the untimely demise of the policyholder. Policyholders need to make regular premium payments to keep the policy active.
 

Types of Term Insurance Plans
 

• Level Term Insurance Plan – where you pay the same premium throughout the duration of the policy
  
  
• Increasing Term Insurance Plan – where the coverage increases as you age
  
  
• Decreasing Term Insurance Plan – where the coverage decreases as you age
  
  
• Convertible Term Insurance Plan – where you can change the insurance plan whenever you want
  
  
• Term Insurance Plans With Riders^# – where the insurer offers add-on covers with the term insurance plan
  
  

What is Life Insurance?

Usually, when you buy life insurance plans, one part of the premium is used for providing death benefits, while the other part is saved to generate returns. The coverage offered is more extended than a term plan.

Types of life insurance plans
 

• Whole Life Insurance Plan – where the insurer offers coverage for the entire duration of the life of the policyholder
  
  
• Endowment Assurance Plan – where the policyholder receives maturity benefits on surviving the duration of the policy
  
  
• Money-Back Plan – where the policyholder receives maturity benefits in instalments after the end of the policy term
  
  
• Child Plan – designed to help you secure the financial future of the child of the insured person
  
  
• Unit-Linked Insurance Plan (ULIP) – a combination of life insurance and market-linked investments
  
  
• Pension Plan – where the policyholder receives a fixed amount every month after retirement
  

Should You Opt for Term Insurance & Life Insurance?

If you are looking for a pure life insurance plan, then a basic term insurance plan is a good option as it offers a sum assured at an affordable premium. However, if you are looking for a more comprehensive cover and/or wealth generation along with protection, then you can look at the range of life insurance plans.

Today, most insurers offer online life insurance policy purchases that allow you to judge providers and plans before signing the dotted line. You can choose from the wide range of Tata AIA life insurance plans based on your needs.

Conclusion
 

Term insurance and life insurance plans offer death benefits in the event of the death of the policyholder. However, most life insurance plans are designed to offer wealth creation opportunities too. While term plans are usually pure-insurance plans, some providers offer riders^# to help boost coverage too. Before you buy a life insurance product, make sure that you understand your requirements and the features and benefits of different types of plans.
 

L&C/Advt/2022/Sep/2167