ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Term Insurance vs Whole Life insurance. Which is better? How to select your insurance policy?

Updated on March 16, 2016

Term Insurance vs Whole Life insurance. Which is better? How to select your insurance policy?

Many people are often confused as to what type of policy they should choose for while going for an insurance cover. Life is unpredictable and hence one needs to insure his/her life so that their beloved ones could get a lump sum, called as Death Benefit in case of his/her untimely death. Apart from providing security, insurance is a form of asset. One can also get tax deduction by investing in Life insurance

Insurance cover must be chosen based on one’s income, monthly expenses, coverage requirement and future needs eg, planning for your child’s education. If you are nearing retirement, you need insurance for a relatively shorter span. You could afford to pay a higher premium and get a higher coverage amount. On the other hand, if you are a 30 year old individual, you need an insurance cover for a much longer period for a relatively low premium.

Whole Life insurance provides a combination of investment and protection. Whole life insurance offers coverage for entire life or until you cross the age of 100, whichever is earlier. In whole life insurance, a part of the premium is invested. If the insurance company makes a profit on the invested amount, it is declared a bonus. Apart from the bonus amount, you also accrue a Cash value over time. If you are alive at the time of maturity, the cash value will be paid to you. If you die before the policy maturity, it will be given to the nominee. The cash value is normally equal to the sum assured.

In case of Term insurance, you only get the protection component. There is no maturity benefit. It safeguards you against any unforeseen circumstances. Term insurance is suitable for young people, especially unmarried individuals as he/she can get a cover of say Rs 10 lakh at an annual premium as low as Rs 2,500. For a married person in his/her 40s with kids, Whole life insurance would be more suitable. The policy will cover him for entire life with an affordable premium

Below are some of the popular Term life plans in India:

Birla Life Click 2 Protect Plus

Bajaj Allianz-iSecure

LIC Amulya Jeevan

Bharti Axa Term Plan

Aegon Religare Term plan

Choosing Whole Life Insurance is like leaving behind an Estate: Experts say that choosing Whole life insurance is like leaving behind an estate for one’s dependents. However, one must ensure that only a small amount gets deducted towards risk cover. Choose a plan that allows you to withdraw money free of charges. There must also be a surrender facility

Whole Life plan will serve as retirement income: You could choose a plan that gives periodic payouts after a certain period of time. This will serve as your retirement income after your regular income ceases

Below are some of the Popular Whole life plans in India:

LIC Whole Life policy

Max Life Whole Life Super

HDFC Life Sampoorn Samridhi Plus


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)