Difference Between Term Insurance Plan and Whole Life Insurance - PowerPoint PPT Presentation

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Difference Between Term Insurance Plan and Whole Life Insurance

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A term insurance approach is the most straightforward and reasonable type of disaster protection accessible to singular life. Under this arrangement, the safety net provider guarantees to pay a vast aggregate guaranteed add up to the candidate of the protected individual, on the off chance that the safeguarded kicks the bucket inside the strategy term. There are numerous advantages of the term cover for the families. Click to know more – PowerPoint PPT presentation

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Title: Difference Between Term Insurance Plan and Whole Life Insurance


1
Difference Between Term Insurance Plan and Whole
Life Insurance
Search. Compare. Buy
Sourcehttps//www.slideshare.net/rameshsonavne/di
fference-between-term-insurance-plan-and-whole-lif
e-insurance
2
What is a Term Insurance Plan?
  • A term insurance plan is a pure protection life
    insurance plan that helps you protect your
    familys financial future at the time of your
    unfortunate demise.
  • A pure protection plan does not offer any
    maturity benefit.
  • You can enhance the coverage of your term plan
    with riders such as critical illness rider,
    waiver of premium rider, accidental death benefit
    rider and others.

3
What is a Whole Life Insurance Plan?
  • This type of life insurance plan provides you
    coverage for 100 years or your whole life,
    whichever is earlier.
  • This life insurance policy requires the
    policyholder to pay premiums until his death or
    for a specific term.
  • On death of the insured, the beneficiary is paid
    sum assured along with the bonus.
  • On survival, the policyholder is eligible to
    receive the sum assured with the accumulated
    bonus.

4
Comparison of Features
  • Term Insurance Plan
  • Whole Life Insurance
  • A term insurance policy offers you coverage for a
    specific period of term.
  • A term life insurance policy is cheaper compared
    to whole life insurance.
  • A whole life insurance policy offers you lifelong
    insurance coverage.
  • A whole life insurance policy gives you the
    benefit of availing a loan.

5
  • Term Insurance Plan
  • Whole Life Insurance
  • Payout is made at the end of the premium payment
    term or policy term.
  • A term insurance plan does not provide any
    loyalty additions.
  • Death benefit is paid only on the demise of the
    policyholder.
  • A whole life insurance policy offers you bonus
    and loyalty additions.

6
Pros of Term Life Insurance
  • It is one of the cheapest forms of life insurance
    policies in India.
  • It helps your family members pay off all your
    loans and liabilities.
  • This type of insurance plan provides you high
    coverage at low premium.
  • It provides you with life cover for specific
    period of time i.e. till your childs marriage or
    education.

7
Cons of Term Life Insurance
  • It provides coverage only for a specific period
    of time.
  • If your policy expires, so will your coverage.
  • If you survive the term, then no benefit is paid.

8
Pros of Whole Life Insurance
  • This type of life insurance insurers you for
    lifetime i.e. even if you live for 100 years or
    more.
  • This type of insurance provides you with bonus
    and sum assured on survival and on death too.

9
Cons of Whole Life Insurance
  • The premium for a whole life insurance plan is
    high compared to a term insurance plan.
  • Chances of being under insured are high.

10
Which is the Best Plan for you?
  • If youre in your 20s or 30s and are unmarried,
    then a term insurance plan is best for you as
    they offer high coverage at low premium.
  • If youre 30 and are married then a mix of term
    and whole life is good as it provides you with
    financial protection as well as cash value.
  • If youre in the 40s or 50s, then whole life
    insurance is a good option as term plan would be
    much expensive at this age and will not provide
    you coverage till the end.
  • Recommended Read Term vs Whole Life Insurance
    Which One You Should Buy?
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