whats the difference between a TERM insurance and a Life insurance ?

[anuragmukherjee28]

can anyone please explain this ?

 

[Harsh Shah]

Here you go,

Life insurance covers you and your family in the case of your death, whereas term insurance provides coverage during a chosen period.

Overall, term insurance is associated with a more affordable price tag when compared to life insurance. This means that there will be less of a financial burden on your family should you pass away while the policy is in force.

 

[Pahulpreet Kaur]

Isn't term Insurance a type of Life Insurance? @Harsh Shah

 

[Harsh Shah]

@Pahulpreet Kaur Yeah somewhat it is, but not completely. Diffrences have been stated above.

 

[ShavirB]

Isn't term Insurance a type of Life Insurance? @Harsh Shah

Hi Pahulpreet, you're absolutely correct in this. Term Insurance is a type of Life Insurance. Basically Life Insurance is a broad bucket which has 8-9 different types of Insurance (Endowment Plans, ULIPs, Whole Life, Term, etc)

 

[Pahulpreet Kaur]

Hi Pahulpreet, you're absolutely correct in this. Term Insurance is a type of Life Insurance. Basically Life Insurance is a broad bucket which has 8-9 different types of Insurance (Endowment Plans, ULIPs, Whole Life, Term, etc)

Exactly, that's what I know so far

 

[arjungoyal12]

I haven't bought a Term or Life Insurance. Is it really important though?

 

[Pahulpreet Kaur]

I haven't bought a Term or Life Insurance. Is it really important though?

Yes, definitely....You should research and try to go for it at the earliest because the earlier you start the lesser premium you gotta pay. Term Insurance is best option for a Life Insurance (Don't go for any ULIP, Endowment, etc plans). In term Insurance, the premium you pay in first year gets fixed for your whole term whereas in others it may vary and increase as per your age. Term Insurance gives maximum coverage with least premium compared to other plans.

 

[arjungoyal12]

Thank you for such guidance and advice. Will help a lot!