As term insurance only provides a death benefit, the premiums are very low and provide higher cover. At the same time, traditional life insurance policies also provide a maturity benefit and have higher premiums. Many life insurance policies also provide low returns.
Is LIC better or term plan?
The amount provided as the death benefit in term insurance plans is much higher than the maturity benefit offered by life insurance policies. Even though most insurance buyers consider investing in life insurance policies to avail the dual benefit of life protection along with returns on the investment.
What are the disadvantages of LIC?
Term insurance is the purest and most affordable among the types of insurance policy in which, you can opt for a high life cover for a specific period.