Insurance is a tool used to mitigate risks. This is especially true for life insurance. The product secures your family against the financial burden that could be caused due to your sudden death. It applies to you if you are the sole breadwinner of your family. If you are already looking to buy life insurance, there are many plans that you can look at that can help fulfill your family’s needs.

Recently, term insurance plans have gained immense popularity. In fact, many are starting to prefer term insurance plans to traditional life insurance plans. Moreover, there is a high number of financial experts that recommend choosing term plans over any other type of life insurance. However, ultimately, your choice of life insurance should be based on your requirement.


Both term plans and traditional life insurance policies serve the base function of providing a death benefit to the family of the policyholder incase of sudden death. However, that may be the only similarity they have. For example, term insurance plans do not offer a maturity benefit at the end of the policy term. While, there are other types of insurance plans that do offer a maturity benefit. But, there is one major reason that many still prefer a term insurance plan. It is because,the insurance providers offer an extremely high sum assured for a much lower premium. Such high life coverage often tends to be more than enough to meet your family’s requirements.

Benefits of Term Insurance 

To understand how beneficial a term insurance can be, you need to understand what it is and how it works. Firstly, online term insurance is divided into three categories. These categories are based on how you make the premium payment: one-time premium payment, partial premium payment plan, and regular premium payment plan. As the name suggests, in a one-time premium payment plan, you pay the entire premium at once.In a partial premium payment plan, you can pay the entire premium over a few installments. And, in a regular premium payment plan, your total premium is divided over the term of your policy and you pay until the policy expires.

For a regular term plan, premiums are low. At the same time, you get an extremely high amount as sum assured. In case of ROP term policies, the premium is a bit higher but it has the added benefit of getting back the premium you paid, if you survive the policy.  

Benefits of Traditional Life Insurance Plans

A key benefit that traditional life insurance plans offer is options. You can choose among different types of life insurance plans and enjoy a wide range of benefits they each offer. In most types of life insurance plans, the insurance provider will returnthe total premium paid along with interest and in some cases,a bonus,if you survive the policy period. However, for traditional life insurance plans, the premiums are much higher than the term insurance plans. Moreover, the sum assuredoffered in these plans is also much lower. This is because, there are savings and investment components to many of these life insurance plans.

Within traditional life insurance plans, there are four types you can look at. These include money back plans, unit-linked plans, endowment plans, and whole life plans. The first one involves the insurer paying the premium back at regular intervals and a lumpsum payment at the end of the term. Others are linked to various market and savings instrument tools that allow you to do more than secure your family’s future. Be sure to know the details of each of the insurance plans and then make your choice.