In our last article, we have caught a glimpse of why one must have his or her life insurance. But many of us are confused about, which type of insurance we should choose.
let's check what is the difference between Term Insurance Plan and Endowment Plan so that anyone can choose an insurance plan as per their need.
1. Coverage :
Term insurance plan is only for life cover. That means in this plan only the nominee will get the sum amount in case of death of the policyholder. The policyholder did not get any amount if the policy cover expires.
But in the case of the Endowment Plan, the policyholder also gets a fixed sum amount if he survived on expiry of life cover.
2. Cost :
The premium of the Term Insurance Plan is too small so that anyone can afford it.
Since the Endowment plan include a savings plan also hence premium of an Endowment Plan is much higher than Term Insurance Plan.
3. Purpose :
The main purpose of having Term Insurance is to protect our family in case of our death.
The purpose of an Endowment Plan is insurance with savings.
These are few differences between The Term Insurance Plan and Endowment Plan which may help you to choose the best suitable plan for yourself.
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