Term Insurance vs Life Insurance – Key Differences Explained | Sanjeevni Bima

🔹 What Is Term Insurance?

Term insurance is a pure protection plan. It provides a high life cover at an affordable premium for a fixed period (term). If the policyholder passes away during the policy term, the nominee receives the sum assured. If the policyholder survives the term, no maturity benefit is paid.

✅ Key Features of Term Insurance:

• High coverage at low premium

• No maturity or survival benefit

• Ideal for income replacement

• Best suited for earning individuals with dependents

🔹 What Is Life Insurance?

Life insurance generally refers to traditional policies like endowment plans, money-back plans, or whole life policies. These plans combine insurance protection with savings or investment benefits.

Life insurance policies provide life cover and also offer maturity benefits if the policyholder survives the policy term.

✅ Key Features of Life Insurance:

• Insurance + savings component

• Maturity benefits available

• Higher premium compared to term plans

• Suitable for long-term financial planning