Term Vs Whole Life insurance

Purchasing a term insurance plan provides financial independence to the family of the policyholder in case of an unfortunate event. A term insurance plan works as a financial safety net for the family of the insured. With a wide range of term insurance plans available in the market, it often becomes confusing for buyers to zero in on a plan. To help our customers choose the best plan, here we have elaborately discussed the difference between whole life insurance and term insurance plan.

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What is Term Insurance Plan?

Term insurance is the most affordable type of life insurance plan. A term insurance plan is specifically designed to provide death coverage to the family of the policyholder in case of an unfortunate event. A term insurance plan provides coverage for a specific time period and does not provide any maturity benefit.

Note: Now that you know that what is term life insurance plan you can easily buy a term plan for your loved ones.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

What Is a Whole Life Insurance Plan?

A whole life insurance plan is a specifically designed insurance product that provides life coverage up to 100 years of age to the policyholder. Under this plan death benefit is provided to the beneficiary of the policy along with any accumulated bonus or guaranteed addition bonus or loyalty bonus for the entire policy tenure in case of the decease of the insurance holder. This plan is a good option for investment for individuals who want to plan their retirement.

Term Life vs Whole Life

Pros and Cons of Term Insurance and Whole Life Insurance

Term Insurance	Whole Life Insurance
Pros	Pros
Provides higher insurance coverage at a minimum premium rate. Take care of the liabilities and debts of the family in case of the absence of the breadwinner of the family. Offers rider benefits to the policyholder. The plan works as an income replacement in the event of the death of the policyholder. The policy can be purchased online in a simple and hassle-free way.	Provides life coverage for the entire lifetime of the policyholder. The plan works as a financial backup in case of any emergency. Take care of the liabilities and debts of the family in case of the absence of the breadwinner of the family. Along with the death benefit, the plan also offers bonus benefits as an accumulated bonus or guaranteed addition bonus or loyalty bonus. The whole life insurance plan also offers the facility to take a loan. The policy can be purchased online in a simple and hassle-free way.
Cons	Cons
Provides life cover only for a specific time period. No maturity benefit is paid in case of survival of the policyholder during the entire tenure of the policy. The claim can only be made in case of the demise of the insurance holder.	As compared to a pure term insurance plan, the whole life insurance provides a higher premium rate. There are high chances of being underinsured. As compared to other investment options, whole life insurance is not a very good option for wealth creation.

Note: You can easily calculate the term plan premium by using the term insurance premium calculator online tool.

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Which is a Better Option of Investment?

Well, the answer totally depends on the choices and requirements of the insurance buyer. If a person wants to buy insurance coverage at a young age with a low premium rate than he/she should consider investing in a term insurance plan. However, if an individual wants to create a financial cushion for the future and wants to be covered for a lifetime, then they should consider investing in a whole life insurance plan.

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.

Note: Check out the best term life insurance in India and choose one that suits your requirements.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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