Term Insurance vs Endowment Plan. Which Should You Buy?

The Core Trade-off

Term Plan: ₹10,000/year → ₹1 crore cover → ₹0 at maturity. Endowment Plan: ₹50,000/year → ₹10 lakh cover → ₹20 lakh at maturity.

Same person, same age. The term plan gives 10x more coverage at 1/5th the cost. But the endowment gives your money back (with bonuses). Both have value. for different people.

Choose Term Insurance If...

• •You are disciplined enough to invest the difference (₹40K/year) in mutual funds or PPF
• •You want maximum coverage at minimum cost
• •You have a home loan or large financial responsibilities
• •You understand that 'no money back' is a feature, not a bug. it keeps premiums low
• •Your primary goal is protection, not savings

Choose Endowment If...

• •You're not disciplined about saving. you'll spend the money if it's in your bank account
• •You want a forced savings mechanism with guaranteed returns
• •You want guaranteed maturity amount (not market-dependent)
• •You're okay with lower coverage (₹5-20 lakh vs ₹1 crore)
• •You value LIC's bonus track record and want long-term wealth accumulation

The Best Answer: Buy Both

This is what smart financial planning looks like: Buy a term plan for ₹1 crore cover (₹10K/year at age 30). Then buy an endowment like Jeevan Anand for ₹10 lakh SA (₹50K/year). Total: ₹60K/year for ₹1.1 crore cover + guaranteed savings.

Your family is fully protected AND you're building wealth. This is what most experienced LIC agents recommend.