Difference Between Endowment Life Insurance, Term Life Cover And Income Protection Insurance

bhushan by bhushan pandey

Published Tue, Jun 6th 2017, 17:56 | Fitness

Life insurance is one of the best purchases that you can make for your family and loved ones. Since only one or two policies will actually meet all of your insurance needs we will take a look at three most popular policies available. To explore this field we need to see what types of cover are available.

Endowment life insurance is one that most people choose for their first coverage. This type of coverage will provide you with a permanent lump sum payment whether you live or die. Because of this double benefit most people end up choosing this policy to create a safe financial net for themselves. This coverage policy is a lot like the whole life insurance policy, however if one chooses to use it before the endowment period it becomes a living benefit. The major difference between these two is the maturity period, whereas endowment policies usually have flexible maturity periods whole life coverage has a fixed maturity period that goes to a 100 years.

Term life insurance is a bit different from the above described one, it offers monthly instalments for a limited period of time. After the expiration of the time period the monthly premiums that were given out before are subject to change and one can end up paying, usually more, for almost the same amount of coverage. Similar to the Endowment Policy if the benefactor dies during the period, the money will be given to the benefactors family. Most people claim that buying a term life insurance will guarantee you a cheap and substantial death benefit over a specific period of time.

The major difference between endowment coverage policy and term life insurance is in their usage. Most people define endowment as a great addition to other forms of investments and a great way to save up some money for specific purposes.

Income protection insurance (or for short IPI) is popular in the UK and in Ireland. This coverage policy pays monthly instalments to benefactors who are incapacitated and who are because of that reason unable to work, this includes illnesses and accidents. This policy was formally known as Permanent Health Insurance. Income protection insurance offers more benefits for the benefactors than other accident coverage policies that are available.


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