Life Insurance

Financial Protection for Family

1. Provides a lump sum (sum assured) to your family in case of your untimely death.
2. Ensures that dependents can maintain their lifestyle and cover essential expenses like education, loans, or daily living costs.

High Coverage at Low Cost

1. Compared to other life insurance products (like endowment or ULIPs), term plans offer much higher coverage for a relatively low premium.
2. Example: For the same premium, you might get ₹1 crore coverage in term insurance, versus only a few lakhs in traditional plans.

Debt & Liability Protection

1. Helps your family clear outstanding debts like home loans, personal loans, or business liabilities, so they don’t inherit the burden.

Here’s a clear comparison of Term Life Insurance vs other types of life insurance:

1. Term Life Insurance

1. Purpose: Pure protection.
2. Premiums: Lowest among all types.
3. Coverage: Very high (₹1 crore cover at affordable premiums).
4. Maturity Benefit: No payout if you survive the policy term (unless return-of-premium variant is chosen).
5. Best for: People who want maximum financial security for dependents at minimum cost.

2. Whole Life Insurance

1. Purpose: Protection + lifelong coverage.
2. Premiums: Higher than term plans.
3. Coverage: Moderate (lower sum assured compared to premium paid).
4. Maturity Benefit: Pays out on death (whenever it happens, even after 80–90 years).
5. Best for: Those who want lifelong security + estate planning.

3. Endowment Plans

1. Purpose: Insurance + savings.
2. Premiums: High.
3. Coverage: Lower compared to term.
4. Maturity Benefit: Lump sum at end of policy if you survive.
5. Best for: Conservative investors who want disciplined savings along with some insurance.

4. ULIPs (Unit Linked Insurance Plans)

1. Purpose: Insurance + investment (linked to market returns).
2. Premiums: Higher.
3. Coverage: Moderate.
4. Maturity Benefit: Depends on market performance (equity, debt, hybrid funds).
5. Best for: Those seeking investment growth + insurance in one product.