Term Insurance (TI) v/s Life Insurance (LI)

POSTED BY me.finanz ON October 2, 2012 5:28 am COMMENTS (3)

I am planning to take insurance within the month and need some help in deciding with TI and LI. What is the difference between them? How does it work and what needs to be looked into before buying one. Pls suggest a few options to consider buying with a 20-25 yr time frame. I would prefer online but am not averse to an agent option. Also will medicals be required for a SA 1 Cr. Thank you for all your valued inputs.




3 replies on this article “Term Insurance (TI) v/s Life Insurance (LI)”

  1. me.finanz@gmail.com says:

    JGMM, Thanks for your response. If I take a plan online for say SA=1Cr, can I? Or will I be automatically directed to do a medical test. I belive any SA=>50lacs must have medicals done.
    Ramesh, your views are well taken, thx

    Can anyone suggest me 2-3 policies which I could consider. What are these new things I hear. iProtect, iCare, ipremium, etc. Looks like everyone has taken after the iPad boom!

  2. Ramesh says:

    Basically, the term “Life Insurance” is a misnomer. It is actually ‘Post-death Income Replacement’ Insurance.

    Term Insurance is a type of “Life” Insurance.

    Make sure, you get an insurance policy which will be able to provide your financial dependents an amount which will help them in maintaining their current life style for a long period of time, without compromises and after paying off all the debts and liabilities.

  3. Term Insurance = Life Insurance, so what exactly is your question?

    Most Insurance policies sold by LIC (and others) have an insurance component in them and also an investment component in them. STEER AWAY FROM SUCH POLICIES.

    Buy a Term Plan. Insist on medicals. Take it online it is relatively inexpensive.

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