Term life insurance as compared to other life insurance plan is the most affordable and simplest way to ensure your life.  Term insurance is a type of insurance that offers coverage for a specific period of time.  In that term, if the insured dies, beneficiaries get full coverage as the death penalty. However, if term ends, it will cease your coverage without paying anything on your earlier rate of premiums.   No Guarantee! No Claims!! You just need to purchase another set of coverage for further benefits.

It is considered expensive without comprising long term benefits; however premium at a fixed rate of payment is much lesser than other life insurance plans. Low premium rates for a certain period of time helps to ensure financial benefits for your family. In simple words, term insurance is not an investment; it’s an expenditure you are spending for your life to get it insured for a short period.

There are various types of term insurance and life insurance plans available in the market. Before selecting, one should go through their difference to end with anticipated results.  Let’s see how term and other life insurance plans differ:

1.  In Term life insurance, the premium rate is much lower as compared to other life insurance plans.

2.  In permanent life insurance, the premium you are going to pay is fixed throughout the policy term but in term insurance, the premium can fluctuate while you renew the plan.

3.  In Term life insurance, you cannot claim for the death penalty to get assured money back if your policy is inactive. While in other life insurance plans offers premium payments if insured stay alive during the policy tenure.

4.  Life term insurance plans act as saving and security plans while term insurance acts as a simple plan that offers no extra benefits apart from death benefits

Which policy suits you the most?

Preferably, if a person is single, term insurance is the right plan to pick as it offers protection by paying affordable premiums. Moreover, if you are going under some health concerns, it provides the maximum profits to get your life covered.

Term insurance is basically of three types:

  • Single time premium payment term plan– In this plan, you can avail of the term coverage after paying complete payment at one time.
  • Partial premium payment term plan– In this plan, the person has to pay premium amounts on a certain period of time.
  • Fixed premium payment term plan – In this plan, a fixed rate of payment has to be paid on a regular basis.

In case you are married with two or more children, term insurance alone will not prove worthy.  So choose fusion of whole and term insurance in which you can get paid benefits required at a certain period of time while term will keep your family secured in your absence by paying death benefits.

After the age of 45, whole life policies act as lifesaving; deliver coverage for the whole life. At this point of time, the premium for whole life is low-priced as compared to term insurance that in turn sure foot to acquire high monetary benefits after you leave this earth.


Be its term insurance or permanent life insurance, you can buy insurance policy at any time of your life. Most of the policy companies bear insurance agents who explain every aspect of policy-relevant to your needs. Despite that, you can buy policy online through company’s website where step by step explanation gives a clear picture of your desires. You can even communicate on Calls to ensure the policy features. But above all, make sure you have done your detailed study before spending even your single penny on any of the insurance policies.


Jennifer Jones is a finance advisor and part time content writer.

View all posts

Add comment

Your email address will not be published. Required fields are marked *


Get more stuff

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.