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The ABCs of Life Insurance: Term Plan vs ULIP vs LIC

When it comes to life insurance, one size doesn’t fit all. Your life goals, responsibilities, and risk appetite decide which plan suits you best. In India, three popular options are Term Plans, ULIPs, and LIC policies. Let’s simplify them for you.

Term Plan – Pure Protection

A Term Plan is life insurance in its simplest form. It offers a high sum assured at low premiums. If the insured person passes away during the policy term, the nominee gets the payout. If the policyholder survives the term, there’s no return.

✅ High cover, low cost
✅ No savings or maturity benefits
✅ Ideal for income earners with dependents
✅ Tax benefits under 80C & 10(10D)

👉 Best for: Pure protection at minimum cost.

ULIP – Insurance + Investment

A ULIP (Unit Linked Insurance Plan) gives you life cover and invests part of your premium in equity/debt markets. You can track fund performance and even switch funds.

✅ Market-linked returns
✅ Life cover + wealth creation
✅ Great for long-term goals
✅ Tax benefits & partial withdrawals after 5 years

👉 Best for: People looking to grow wealth while staying insured.

LIC Policy – Trusted, Traditional Plans

LIC offers endowment and money-back plans that combine life insurance with guaranteed or bonus-linked savings. These are low-risk, savings-focused policies.

✅ Assured maturity returns
✅ Bonus payouts
✅ Option to take policy loans
✅ Trusted by millions

👉 Best for: Conservative investors wanting guaranteed savings + cover.

Which One’s Right for You?

Let Protect Finserv Help You Decide

Still unsure? Our advisors at Protect Finserv will help you choose a plan that fits your life stage, risk appetite, and financial goals.

Ready to secure your future? Let’s talk!