What is the difference between term plan and endowment?
An endowment policy, unlike term insurance is an insurance cum investment instrument that offers both protection in times of crisis and simultaneous growth of money invested. The life cover offered is known as the sum assured of the endowment policy.
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.
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.
What is the best age for term plan?
Which is the right age to invest in a term insurance plan? Those in their 20s- This is the ideal time to purchase term insurance since it is highly affordable and ensures financial coverage for the family in case of any unfortunate mishap.