Term Insurance vs. Endowments- A Basic Guide
Once you are choosing life insurance coverage, you may often be blocked with some questions regarding the term insurance plan as well as an endowment plan. There are a few differences between term insurance plans and endowment plans and these are discussed below: In terms of investment, the term insurance plan only covers life or secures a life from financial losses. However, in case of an endowment plan, it is a combination of investment as well as insurance. This means that it covers life as well as maturity benefits. Once you are choosing a term plan, it is to be remembered that it must be calculated in the term insurance premium calculator so that you can work out your premium amount. The term plan pays out the lump sum coverage amount to the nominee in case of the policyholder’s death. However, if the tenure ends with the policyholder still alive, then there are no such payouts. In the case of a term insurance plan, the premium amount is mostly affordable, but it provides the