Term insurance and traditional life insurance are both life insurance products, but they can serve different financial purposes. Understanding the difference helps you compare options more carefully.
Term insurance
Term insurance provides life cover for a specified period. It is generally designed to provide protection without necessarily offering a maturity benefit, making it worth considering for families with dependants, liabilities or income replacement needs.
Traditional life insurance
Traditional products may combine life cover with a savings component. Endowment and money-back policies can have maturity benefits, premium structures and conditions that differ from one product to another. Distinguish guaranteed benefits from non-guaranteed benefits.
Choose based on your main objective, budget, required cover and ability to maintain premiums. Read the policy illustration, exclusions and actual benefits rather than relying only on a sales presentation.