Term Insurance vs Life Insurance: Which is Right for You?

1. Every responsible person will at least have one insurance between term insurance vs life insurance. Even if you perfectly plan every stage of your life, there are still some uncertain situations that can arise. Tackling them can be very difficult but having financial support during that time will be of great help. What to choose in term insurance vs life insurance is a very common confusion. Both of them are helpful, however, your budget and area of concern will be the deciding factors. Both plans have some specific benefits that you need to understand. After reading this article, you will be able to select the most appropriate option for your goals. What is term insurance? Term insurance is a type of plan that is available for a fixed period. A specific number of years is set during which the assured amount of the term insurance will be given. The person who buys the term insurance is insured for those years only. If the person insured unfortunately dies during that period, the assured amount will be given to the nominee by the insurance company. On the other hand, if the insured person is alive and healthy after the term plan is over, no claim can be made. This plan does not allow any maturity benefits after the term insurance period is over. 1. Alon with the basic term insurance plan, some companies cover additional riders like accidental death cover, critical illness coverage, etc. Furthermore, there are three types of term insurance plans. 2. One-time premium payment term plan – In this plan, the premium amount is paid as a lump sum. The whole amount is paid at one-time. 3. Partial premium payment term plan – Here, the premium amount is given in partial parts and not all at once. Regular premium payment term plan – This plan is convenient because the amount is required to pay in regular intervals. Rwealth