What Is Term Insurance: Term insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. Term insurance does not provide maturity returns like life insurance.
Term Insurance Vs Life Insurance: No one can say when difficult situations will arise in life. Therefore, it is very important to make the family financially strong. In such a situation, insurance works as a life cover. But there are many types of insurance like life insurance, health insurance and term insurance. However, many people get confused between life insurance and term insurance and are unable to decide which insurance would be better to buy.
In such a situation, let us tell you what is term insurance, how different it is from life insurance and what things should be kept in mind while buying it.
Understand the difference between term and life insurance
Life insurance policy works to provide coverage to life. In this, if the insured person meets with any kind of accident and dies, then his nominee or family members get both death and maturity benefits as financial assistance from the insurance company.
However, term insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. In such a situation, if the insured person dies during the policy term, then the cover amount is given to the nominee in lump sum. This provides financial security to the family. Term insurance does not provide maturity returns like life insurance.
Term insurance or life insurance, which is more beneficial?
Whether you should buy life insurance or term insurance depends entirely on your needs. Term insurance is cheaper than life insurance. If you are planning insurance for a short period then term insurance can be a profitable deal.
Term insurance plan gives you maximum returns in less money. With this you can save money. Keep in mind that if a person stops paying the premium in a term insurance plan, he will stop getting benefits and the policy will also be discontinued along with it.
Insurance Policy Rules: Now new insurance policy will be available only in Electronic Format
