Life insurance nowadays has become a necessity more than a luxury. It became an integral component of the smooth functioning of our lives of both individuals and their loved ones. So, with the increasing popularity of life insurance, companies have come up with multiple options, and one of the biggest challenges faced by everyone is choosing the right insurance plan.
To help the customer in making an informed decision about the life insurance plan, here we are presenting with you the table that will help you in making an easy comparison of all the key expects related to each type of insurance plan in India.
|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.|
|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.|
|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.|
|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. |
|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|
|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. |
|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.|