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Which is Better Term or Whole Life Insurance?

Which is better term or whole life insurance?

Term life insurance policies provide you insurance cover for a specified tenure. But whole life insurance provides cover till the insured’s death or till he his 100 year of age.

While determining the best policy it is advisable to consider the below pointers:

Policy tenure

Term life insurance is usually for a period of 5, 10, 15, 30, or up to 75 years.
Whole life insurance, the insured is covered until his death or when he/she reaches 100 years of age.

Premium

Term life insurance offer more affordable premium as compared to whole life insurance.
However, the former gets costlier with increasing age of the insured

Maturity Benefits

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.
However, in case of whole life cover, In case of Surrender or Prematurity of the policy only Surrender Value is paid and not value of the plan.

If you are a 20-something bachelor, it is advisable to opt for a term plan as it provides attractive premiums and provides pure risk cover.

However, if you are married and have a family to support choose whole life insurance plans as they provide protection as well as investment opportunities.


Disclaimer - *Conditions apply. This product is offered under the Group Insurance scheme wherein Bajaj Finance Limited is the Master policyholder. The insurance coverage is provided by our partner Insurance Company. Bajaj Finance Limited does not underwrite the risk. IRDAI Corporate Agency Registration Number CA0101. The above mentioned benefits and premium amount are subject to various factors such as age of insured, lifestyle habits, health, etc (if applicable). BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. This product provides insurance coverage. Purchase of this product is purely voluntary in nature. BFL does not compel any of its customers to mandatorily purchase any third party products.”