| Parameters | Term Insurance plan | Whole Life Insurance plan | Money back policies | Unit Linked Insurance plan | Pension/ Annuity policies | Endowment policies |
Overview
| It is the simplest and most popular form of insurance plan.
| It is considered as both protections plus participatory saving policies.
| These are participatory and act as both saving and protection policies.
| These are investment and insurance policies that are unit-linked and participatory.
| These are traditional form of policies which are non-participatory in nature.
| Both protection and investment policies.
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Term
| Ranges from 5 years to 30 years
| It covers the entire life of a policyholder.
| Ranges between 5- 25 years.
| Term ranges between 10 – 20 years.
| The term is not fixed in this case, annuity kicking post-retirement
| Term ranges between 10-35 years.
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Death Benefits
| Sum assured is given to the nominee if the policyholder dies before the policy gets matured.
| Sum assured will be given to nominee if the policyholder dies when the policy is in place.
| It is payable to the nominee if the policyholder dies while the policy is in place. The death benefit is exclusive of other pay-outs.
| It is payable to nominee if the policyholder dies while policy is in place.
| Some plans come with a provision to return the invested amount in the case of death of the policyholder.
| Payable to nominee on death of the policyholder which includes bonuses accumulated also.
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Maturity Benefits
| Survivor is not liable for any maturity benefits.
| Maturity benefits are paid only in that case when the policyholder reaches a certain age (80 years to 100 years)
| Survival benefit is applicable only if the policy get matures.
| Maturity benefit will be paid to the policyholder on survival at the end of term
| No maturity benefits given to Policyholders. They are only entitled to regular pension for the term specified.
| Maturity benefit will be paid to policyholder on survival at end of term.
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Premium Cost
| One of the most affordable and lowest premiums among all plans.
| Premium is higher as compared to other plans.
| Affordable premiums
| Premiums are higher owing to investment cost
| It is moderately priced. Based on one time premium payment.
| Premium Cost is high
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Additional Benefits
| These plans give maximum cover at low premiums. One can opt for variants of pure term plans which provide maturity benefits.
| Benefits paid on maturity or death include the bonus component along with the sum assured.
| Regular monetary benefits are given to policyholders while the policy is in force, with these amounts not impacting the death benefit.
| Investments accumulate profits, paid as bonus.
| Tax exemptions can also be claimed Act as a source of regular income post-retirement.
| Investments accumulate profits, which are paid as bonus.
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Best plan for
| People who are preferring to secure the financial interest of their family members and are not interested in paying exorbitant premiums.
| Individuals looking for short term protection then can choose this plan.
| Individuals who want to secure their life but also willing to earn money at regular intervals. It is ideal for people looking for both investment and protection plans.
| People who are interested in a medium-term investment goal to diversify their portfolios. It also suited to those with high incomes and keen investment sense.
| All those who are concerned regarding the retirement life and want to generate a regular income source post- retirement.
| People who can afford to pay a high premium and are looking to protect themselves and multiply their investment.
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