Term Life plan or Money Back plan which one to buy?
Life insurance plans come in many variants. You can buy a plan which replaces the lost income in case of death of the bread-winner or a plan which specifically plans for your child’s future. There are plans which are designed for retirement funding while others help you enjoy capital market returns. Every life insurance plan has a different benefit structure and fulfils different needs. However, most often than not, you get confused between the different life insurance plans. You believe that they are similar to each other. Take the instance of a term plan and a money back plan. You believe that both these plans are similar to each other. Are they? No they are not. Term insurance is different from money-back plans. Let’s explore how – Term insurance plans Term insurance plans , generally, cover your death risk. In case of death of the insured during the chosen tenure, the sum assured is paid. The USP of term plans is their premium. Since only the death risk is covered th...