Given the various uncertainties of life, protection plans, such life insurance and term insurance, have emerged as essential financial instruments. While these terms are often used interchangeably, there are various key differences to consider when purchasing any of these plans. We will discuss key differences between term insurance and life insurance in terms of key criteria, including tenure, coverage, premium amount, and maturity benefit etc. and more. After this you will get a clearer picture of what the terms life insurance and term insurance actually refer to.

While selecting a life insurance policy, you should understand the difference between sum assured and maturity amount carefully to avoid payout-related confusion. Though some policyholders assume that maturity benefits and sum assured are similar, actually, both of them serve different purposes. Sum assured offers financial security, while the maturity amount offers returns and savings.

Keeping track of multiple insurance policies is not easy. Renewal dates, premium amounts, and physical copies stored in different places, most people find it difficult to stay on top of all of it.

An electronic insurance account (EIA) was built to fix this. This digital platform stores all your insurance policies in one convenient location, so you no longer need to keep track of them individually or worry about misplacing any physical paperwork.

Term insurance is a type of life insurance that is purely protection oriented. It protects the family of the insured in case of their demise during the policy term. Term plans provide high life cover at affordable premiums without any maturity benefits. Which means term insurance plans don’t include any savings or investment component.

Risk cover provides financial protection against risks such as death, illness, accidents, hospitalisation, or property damage. The protection depends on the policy terms. Life, health, and general insurance can help reduce the financial impact of unexpected events on you and your family. Read on to learn about the meaning, benefits, and types of risk cover policies.