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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
A term insurance plan is a pure life insurance policy that offers financial protection to beneficiaries in the event of the policyholder’s untimely demise. It does not accumulate any savings or investment returns.
“Term insurance is your go-to safety net—offering a high life cover at affordable premiums. It ensures your family’s financial security in case of unexpected events, but there’s no payout if you outlive the term, say till age 60. Simple, affordable, and purely protective!” says Nirmal Bansal, Managing Director of iVentures Capital.
On the other hand, Bansal defines an endowment plan as a safety vault with added rewards. They combine life insurance with savings, offering a lump sum payout at the end of the policy term or in case of your demise.
Karthik Raman, CMO and Head, Products, IDBI Federal Life Insurance, explained the benefits of an endowment plan in a conversation with CNBC-TV18 earlier:
“Objectives such as child’s higher education, securing one’s own future, saving for a goal, building a corpus for retirement can well be served by an endowment plan. There are also various riders that can be added to an endowment plan. If the policyholder survives the term of the plan, then he or she stands to receive the maturity sum assured plus guaranteed additions and bonuses depending on the type of plan,” Raman said.
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Term Insurance vs Endowment Plans: The main differences
“While term insurance prioritises protection, endowment plans focus on building a financial cushion for your future, making them a great mix of security and savings,” iVentures Capital’s Nirmal Bansal says.
The main differences between a term plan and an endowment plan are:
Coverage: Endowment plans offer dual benefits of insurance and wealth creation, while term plans provide only life insurance.
Premiums: Endowment plans have higher premiums due to their savings feature, whereas term plans are more affordable.
Maturity benefits: Endowment plans provide a lump sum payout on maturity, unlike term plans which offer no such benefit.
Riders and tax benefits: Both plans offer additional rider benefits for critical illness, disability, and accidents. Both also offer tax deductions under Section 80C, though maturity payouts from endowment plans may be exempt from tax under Section 10(10D).
Vaibhav Kumar, Head- Product & Ecommerce, Axis Max Life Insurance insists that insurance term plan and endowment plan cannot be compared.
“Suitability of an insurance product depends upon the purpose it is expected to serve. Term plans pay only upon death of the insured and nothing is payable upon surviving the term. Hence, it is the cheapest form of insurance. Endowment plans require a little higher amount of premium to make sure the accumulated benefits are adequate for the purpose it is intended for,” Kumar explains.
Hence, Kumar suggests individuals to should make sure the insurance plan being chosen meets the primary objective behind buying insurance. “The amount of cover under a term policy and the amount of target maturity or regular payouts must be adequate for the purpose,” he says.
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