← Life Insurance and Term Plans · Lesson 3 of 4
Term plans and savings plans
A term plan is pure protection: a small premium for a large cover for a fixed period, for example till age 60. If the insured survives the term, there is usually no maturity amount; that is why it is affordable.
Savings / endowment plans combine insurance with saving, so the premium is much higher for the same cover.
Premiums depend on age, health, habits and the insurer. Buying when young and healthy usually means a lower premium. Always disclose your health and habits honestly; hiding information is a common reason for claim problems.
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