Insurance is the foundation of good financial planning. With an evolving life insurance market, companies are offering several plans ranging from protection and savings to investments and wealth creation.
Amongst these, term insurance and whole life insurance offer the most basic and comprehensive life insurance coverage respectively. Let us learn about their distinct features and benefits so that you can identify the best fit.
The simplest form of life insurance, a term plan offers a lump sum paid as Death Benefit (Sum Assured). The coverage is available for the limited term of premium payment years. With a low premium and substantial coverage amount, this policy is a must-have. However, there are no Maturity Benefits.
Whole life insurance offers both, a death benefit as well as savings benefits. The policy lasts for your whole life and you get a lump sum when you decide to discontinue (Surrender) the policy. Whole life plans also offer the flexibility to choose your premium payment frequency and withdrawals.
One such plan is the Max Life Whole Life Super Plan that offers guaranteed protection till the age of 100 years with flexible premium payment terms and 100% Maturity Benefit.
Before you buy any of these policies, you need to ask yourself which would benefit your more basis your needs.
Term Life Insurance
• Extremely cost-effective - provides high cover at a low premium
• Perfect for those who need pure protection for a pre-defined term
|• Ideal if your dependents need protection against debts like a home loan|
|• Offer various riders like critical illness, accidental death, etc.|
Whole Life Insurance
|• Offers a longer tenure - even up to 100 years of age|
|• Helps in building a corpus for future needs|
|• Offers both a Maturity Benefit as well as a Death Benefit|
|• Offers flexibility to withdraw money for various financial need|
The key criteria for choosing an insurance policy should be the life cover requirement that stems from a financial planning exercise. Based on your life stage and investable income, you can avail both types of insurance policies.
You can start by creating a quick quote for a term plan now!
Max Whole Life Super Plan (UIN: 104N080V02) is a Traditional Participating Whole Life Insurance Plan.