With a wide variety of insurance plans to choose from, you may be confused about what is the right choice to protect your loved ones. Most individuals have a primary motive of securing themselves and their families during disease and death. Here we compare two such types of insurance: Term and Comprehensive, each with their own benefits.
| Term Plan | Comprehensive Plan |
Definition | Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary. | A comprehensive plan is a life insurance product that gives benefits over and above a life cover/death benefit. It also protects you through a critical illness cover. |
Claim Stage | One claim: on death of the life | Two claims: first on the diagnosis of |
Claim Payment Mode | Lump sum | Choice of lump sum, installments |
Primary Objective | To reduce financial burden on | To provide for treatment costs |