Term vs endowment
Term insurance pays only on death during the term and costs little. Endowment mixes a small death benefit with a savings element and costs a great deal more. For the same premium, term insurance typically buys many times the cover.
What it means
Term insurance pays only on death during the term and costs little. Endowment mixes a small death benefit with a savings element and costs a great deal more.
Why it matters to a household
For the same premium, term insurance typically buys many times the cover.
Where it trips people up
Being told term insurance is "wasted" if you survive. That is what protection is — you are buying certainty for your family, not a return.
In an Indian household
If an endowment policy already exists, check the surrender value and the remaining term before cancelling. Sometimes finishing it is the lesser loss.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Term vs endowment
Term insurance pays only on death during the term and costs little. Endowment mixes a small death benefit with a savings element and costs a great deal more.
Why does it matter?
For the same premium, term insurance typically buys many times the cover.
What do people usually get wrong?
Being told term insurance is "wasted" if you survive. That is what protection is — you are buying certainty for your family, not a return.
Is there anything India-specific?
If an endowment policy already exists, check the surrender value and the remaining term before cancelling. Sometimes finishing it is the lesser loss.