Life insurance is designed to provide timely financial support for you and your family at different life stages. The most important and primary purpose of life insurance is to provide financial protection to your family or dependants in the event of your death. It pays them either a lump sum or regular payments to the beneficiary of the insurance policy
A term life policy can be bought with a lower premium for a bigger sum insured. Also, there is no savings element. Term life policy pays a lump sum upon the insured’s death if it occurs within a fixed period of time.
A whole life policy combines both the elements of protection and savings, and a certain amount of cash will be paid out to the policyholder upon surrender of the insurance policy.