Difference Between Traditional Life Insurance vs Term Insurance
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Difference Between Traditional Life Insurance vs Term Insurance

  • Highlights

  • Term insurance plans for death

  • Life insurance plans offer survival benefits too

  • There are differences in premiums

  • Enjoy non-smoker discounts from Bajaj Finserv

Insurance is a security that you must purchase, as it protects you and your loved ones. In the eventuality that you are no more, the policy helps provide for your family’s financial needs. Apart from extending financial support to your family, you can also gain from tax deductions when you invest in an insurance plan under Section 80C of the Income Tax Act. However, you can choose either a term insurance plan or a life insurance plan.

Read on to know more about the differences between traditional life insurance and term insurance plans based on several factors.

Death and maturity benefits

A term insurance plan, also known as pure life insurance, offers straightforward benefits. It insures you for a specific period, and only offers benefits in case the insured person passes away during the policy term. If you outlive the policy, there is no benefit. On the other hand, when you buy life insurance, you can accrue benefits on the demise of the policyholder, as well as other benefits. For instance, you can enjoy a bonus that the insurer might declare if it invests your premiums and generates profits. You can also avail a loan against the policy at a low rate of interest. Although the amount received as death benefit is much higher when you pick a term insurance plan, life insurance offers benefits on maturity as well as survival benefits.

Tenor

Term insurance plans offer you an option to choose a tenor based on your age and immediate as well as foreseeable financial responsibilities. On the other hand, a life flexible policy is typically for a minimum of 5 years, and covers you up to the age of 100 years.

Premium amount

Although a term insurance policy starts off with a low premium, it increases as the policy tenor progresses, in line with your age and policy renewal terms. In case of a life insurance policy, however, the premium amount stays constant throughout the tenor.

Bajaj Finserv offers you a Term Life Insurance Policy at an extremely nominal cost, with protection to your family on your death, death due an accident, critical illness or accidental permanent disability. You can also benefit from features like a premium waiver, flexible term, choice of premium payment frequency and more.

You can opt to pay premiums on a monthly, quarterly, half-yearly or annual basis as per your convenience. It also offers you a premium waiver option in case of permanent disability due to accident or illness while the policy continues with the same benefits. In addition, if you’re a non-smoker, you can enjoy even lower premiums.

So, choose the policy that suits your needs best and apply through a trusted insurer. Bajaj Finserv is one such financial institution from where you can purchase your insurance policy. To speed up the process further, check your pre-approved insurance offer, and apply online in just a few minutes, from the convenience of your home.

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