Life insurance is a great way to secure your loved ones and provide for their needs. Life insurance plans are cost-effective and safe. Moreover, they offer many tax benefits. There are different types of life insurance plans in the market, and their suitability can depend on your needs and goals.
Term insurance, especially family term insurance and whole life insurance plans are two of the most sought-after life insurance products. These plans can offer financial protection to your loved ones and let you and them live a stress-free life.
But before you choose one, you must understand their differences and unique features.
What is a whole life insurance plan?
As the name suggests, whole life insurance plans secure you for your entire life. Not only do these plans offer your nominee a death benefit in the unfortunate event of your death, but they also give you survival benefits if you outlive the term. Whole life insurance acts as both an investment vehicle for your goals and an insurance instrument for your family’s future needs.
What is a term insurance plan?
A term insurance plan is a pure protection plan that secures you for a fixed policy term. It only offers protection to your loved ones during the term. There are no survival or maturity benefits if you survive the policy tenure.
Term vs Whole Life Insurance: what should I choose?
The final decision can depend on a number of reasons and factors. If you are looking for a financial plan that can protect your family’s needs in case of an unfortunate event, then term insurance can be the right option. The best term plan in India can offer you a high sum assured at low premiums along with the option to add riders like a critical illness benefit, an accidental death benefit, etc.
However, if you also want to save for your future needs, a whole life insurance plan can offer more benefits. Although the premiums would be higher in comparison, you will get a cash value on maturity that can help you meet your financial goals.
PNB MetLife offers many life insurance products that can fit any budget and accommodate all financial requirements. Browse through and pick a suitable plan for your needs!
| Points of difference | Whole life insurance | Term insurance |
| Meaning | Whole life insurance plans offer you protection for your entire life. You can use them to provide for your loved ones and also save for retirement and other similar goals. | Term insurance are protection plans that provide a life cover and offer financial support to your family in your absence. |
| Cash value | There is a cash value that is paid to you on maturity or when you surrender the plan. | There is no cash value on surviving the policy term. There is also no provision to surrender the plan in return for a payout. |
| Premiums | The premiums are comparatively high as there is a cash value. Moreover, these policies may charge the premium for a fixed term or throughout life. | The premiums are quite low as there is only pure life cover. You can pay the premium for a limited term or throughout the term. |
| Partial withdrawals and loans | A whole life insurance plan lets you withdraw funds in case of a financial emergency. You can also take a loan as long as you repay the borrowed money. | Term insurance plans do not offer partial withdrawals or loans in case of a financial emergency. |
| Suitability | Whole life insurance plans are ideal for securing your family members financially as well as saving for your future. The cash value, along with the applicable bonuses, add to your earnings and help you live a financially sound life. | Term insurance plans are ideal for anyone seeking extensive life cover protection. If all your loved ones are dependent on you for their needs, a term insurance plan can be an affordable option that can help you secure your them in your absence. |
Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time.
Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
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As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.
PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance Plans, Term Plan, Protection Plans, Long Term Savings Plans , Retirement Plans & Child Education Plan.
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