Term Insurance or Life Insurance? Know which has the most benefits

In such a situation, let us tell you what is term insurance, how different it is from life insurance and what things should be kept in mind while buying it.

Understand the difference between term and life insurance
Life insurance policy works to provide coverage to life. In this, if the insured person meets with any kind of accident and dies, then his nominee or family members get both death and maturity benefits as financial assistance from the insurance company.

However, term insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. In such a situation, if the insured person dies during the policy term, then the cover amount is given to the nominee in lump sum. This provides financial security to the family. Term insurance does not provide maturity returns like life insurance.

Term insurance or life insurance, which is more beneficial?
Whether you should buy life insurance or term insurance depends entirely on your needs. Term insurance is cheaper than life insurance. If you are planning insurance for a short period then term insurance can be a profitable deal. Term insurance plan gives you maximum returns in less money. With this you can save money. Keep in mind that if a person stops paying the premium in a term insurance plan, he will stop getting benefits and the policy will also be discontinued along with it.

Whereas if you want coverage for life time, then you should buy a life insurance plan. It also provides cash value. But life insurance premium is expensive. If you stop your life insurance plan midway, you will not be able to recover the entire amount of this policy. You will get only the amount that you deposited as premium. In such a situation, after knowing about both, you can decide which is better for you between term insurance and life insurance.

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