Term Plan Vs Comprehensive Plan

8/4/17 10:55 AM

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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 assured	Two claims: first on the diagnosis of critical illness, and regular installments to cope with the loss of income as well as death; and second on the death of the life assured
Claim Payment Mode	Lump sum	Choice of lump sum, installments or a mix of both for critical illness, and lumpsum at death
Primary Objective	To reduce financial burden on dependents in case of death	To provide for treatment costs dusting serious illnesses, to support the family for income loss during critical illness, and reduce the financial burden on dependents in the case of death