Insurance Plan : Endowment vs Term Plan

Endowment Policy : An endowment policy is a combination of insurance and investment: The life of the individual taking the policy is insured for a certain amount. This life cover is referred to as the sum assured.

Premium paid is high.

Term Insurance Policy: A term insurance policy is a pure insurance policy.Should the insured person pass away, the family is protected by a certain amount.

Let's say you bought a term insurance policy for Rs 20 lakh . The term of the policy is for 20 years.

If you pass away during this period, your family will be richer by Rs 20 lakh.

But, if you outlive your policy, all your premiums (money that you pay to the insurance company to maintain your policy) would not be returned.

Here the Premium paid is very low.