Which is better term insurance or endowment plan

If you want your family to have a high amount of finances in your absence, a term plan would be more suitable for you. But if you want to grow your wealth yet not compromise on getting an insurance cover, you can get an endowment plan.

What is the difference between endowment and term insurance?

Term insurance is a life insurance product that offers life coverage to the insured. An endowment plan is a life insurance product that includes insurance and investment component. It is best suited for people who want to secure their family financially in their absence.

What are the disadvantages of endowment policy?

Drawbacks of endowment life insurance\n\n There are downsides associated with endowment life insurance coverage: High premiums. Premiums for life insurance with endowment tend to be higher than those for other types of insurance coverage, including permanent insurance with a cash value component.

Which is Better life insurance or term insurance?

Term life insurance offer more affordable premium as compared to whole life insurance. Whole Life insurance plans offer maturity values subject to payment of all due premiums of the policy, however, pure term plans do not give any returns. Surrender value: If you surrender a term plan, your life cover ceases.

Which is better endowment plan or money back plan?

While an endowment policy will pay the investment benefit at the end of the policy term, a money-back policy staggers the investment benefit throughout the policy term at regular intervals. Therefore, modern-day investors consider an endowment policy slightly better than a money-back policy.