Purchasing a term insurance plan provides financial independence to the family of the policyholder in case of an unfortunate event. A term insurance plan works as a financial safety net for the family of the insured. With a wide range of term insurance plans available in the market it often becomes confusing for buyers to zero in on the best term insurance plan. In order to help our customers choose the best plan, here we have elaborately discussed the difference between whole life insurance and term insurance plan.
Term insurance is the most affordable types of life insurance plan. A term insurance plan is specifically designed to provide death coverage to the family of the policyholder in case demise of the policyholder during the tenure of the policy. However, a term insurance plan does not provide any maturity benefit to the policyholder. Along with the death benefit offered by the policy, there are several riders benefit to increase the coverage of the policy.
Whole life insurance is a specifically designed insurance product, which provides whole life coverage i.e. up to 100 years of age to the policyholder. Along with the death benefit, the plan also provides accumulated bonus or guaranteed addition or loyalty addition for the entire tenure of the plan. This plan is best suitable for individuals who want to create a financial cushion for the future.
Well, the answer to this totally depends on the choice and requirement of the individual. If the insurance buyer is young and wants to purchase an insurance policy to provide financial security to their family, then they can consider investing in a term insurance plan. However, if a person wants to accumulate funds in terms of retirement planning and wants to provide life protection to their family then they can consider investing in the whole life insurance plan. However, before finalizing the plan it is important to know the features and benefits offered by the policy.
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