When you purchase an endowment plan, you can save regularly over a specific period. At the end of the period, you can receive a lump-sum amount when the policy matures. It is only receivable if the insured survives the policy term. 

In case of death of the insured within the policy term, the insurance coverage kicks in. The nominee will receive the sum assured and any applicable bonus as a death benefit in this situation.

There are different types of endowment plans available to cater to diverse financial needs. You can calculate adequate life coverage or investment needs of your family to use them appropriately. It will help create a financial shield for the future and meet long and short-term objectives in life. 

For that purpose, striking a balance between insurance and investment is necessary. When you secure your life in financial terms, you can make sure your loved ones are protected in times of crisis. Along with that, the growth of your savings over time allows you to meet other significant goals in life.

When you look at term insurance vs endowment plan, you will understand how the two products can help achieve several life goals. Now that you are familiar with the basic definition of term insurance and endowment plan, let's review some important term insurance vs endowment plan pointers.

Each person has a set of expectations from life that vary due to several reasons. The kind of lifestyle you lead, number of financial dependents, and your needs are some common factors that affect your life considerably.

It is in your best interest to map your requirements to have clarity about term insurance vs endowment plan. Ask yourself if it is insurance or investment, or a combination of both that will give you the best results in the future..

In life, there are countless expenses that you have to manage daily. The cost of living is rising steadily, which is why the growth of savings over time is crucial to meet future needs. Depending on the expenses you have to manage with your income, you can examine the suitability of term insurance vs endowment plan.

As mentioned earlier, the cost of purchasing term insurance vs endowment plan varies because of the distinct benefits. You can decide which of them is more preferable to you by understanding your financial profile carefully. It will also help determine the sum assured that is sufficient for your family with either of the policies.

In case you end up over-estimating the sum assured, you may not be able to keep the policy in force. Hence, you may lose valuable savings and benefits from insurance or investment vehicle.

Having a vision of your goals for the future is an essential part of financial planning. When you know what you want 20 or 30 years from now, you can effectively decide between term insurance vs endowment policy.

As more and more Indians incorporate the purchase of different life insurance plans as part of their overall financial strategy to reach their chosen life goals, life insurance ownership in India is on the rise. Axis Max Life IPQ 6.0 recorded the highest ever LI ownership of 75%. Read the full India Protection Quotient 6.0 survey for more insights into how Indians perceive their financial preparedness.

The primary difference between term plan vs endowment plan is that the former is a pure insurance product while the other is a combination of investment and insurance. Since endowment plans offer more extensive benefits, they are usually more expensive than term insurance. However, you can get rider benefits and tax benefits with both of them, depending on the insurer and the policy terms.

Comparing term insurance vs endowment plan essentially means understanding where you can spend your money for better returns. It is a process of identifying your own financial needs in life. Think of term plan vs endowment plan as a checklist that you go through to make necessary adjustments in your financial plan.