Difference between Term Insurance and Life Insurance

I’d like to know the difference between term insurance and life insurance. I don’t have any right now, but am considering one. A few insurance agents have been calling me lately and do nothing but confuse me. So kindly suggest which one to pick. I’m getting married next year. I earn 24k per month. I get incentives/commissions on project basis of around 5k to 8k. Thanks in advance.

: Hi,

Life Insurance finds a place in most of the financial portfolios. While some buy Life Insurance as a means of financial protection, others look at the investment angle of it. There are also individuals who buy Life Insurance cover only to save their tax liability. Life Insurance can thus be categorised into various plans catering to a unique objective.

Term Plans provide financial security while ULIPs provide investment benefits. On the other hand, child plans help in creating a secure financial future for your child while pension plans build up a retirement corpus. With the different plans available, one gets confused as to which plan should be bought first. Ideally, you should be going for a Term Plan when you have started earning. To reduce the premium outgo people settle on a smaller-than-required coverage. Needless to say, it is harmful to the interests of your dependents. An optimal sum assured (based on your financial requirements) is essential if you want to reap the maximum benefits from your Life Insurance plan. A life cover that doesn’t protect the long-term financial interests of your dependents is inadequate.

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Cheers,
BB Expert