Term insurance vs endowment plans: which one do you need?

Term insurance offers pure life cover — a large payout to your family if something happens to you, at a relatively low premium, with no maturity benefit if you outlive the term.

Endowment plans combine insurance with a savings component, paying out a maturity benefit if you survive the policy term, but typically at much higher premiums and lower effective cover.

For most people, financial planners recommend a large term cover paired with separate, dedicated investments — since combining insurance and investment in one product rarely optimises either.

This article is for educational purposes only and does not constitute insurance advice.