1. Purpose

• Savings Plan: Designed to help you accumulate wealth over time while providing some insurance coverage.

• Term Plan: Pure life insurance to financially protect your family in case of your death.

2. Coverage Period

• Savings Plan: Usually long-term (10–30 years) with maturity benefits.

• Term Plan: Fixed term (e.g., 10, 20, 30 years) with no payout if you survive the term.

3. Benefits

• Savings Plan: Returns + maturity amount + bonuses (if applicable).

• Term Plan: Lump sum death benefit only.

4. Premium Amount

• Savings Plan: Higher premiums because part of it goes toward investment.

• Term Plan: Low premiums for high coverage.

5. Maturity Value

• Savings Plan: You get a lump sum at the end of the policy term.

• Term Plan: No maturity value; only payout on death during the term.

6. Risk & Returns

• Savings Plan: Low to moderate risk with guaranteed or market-linked returns.

• Term Plan: No investment return, only insurance protection.

7. Tax Benefits

• Both plans may offer tax deductions on premiums under Section 80C and tax-free payouts under Section 10(10D) (as per Indian Income Tax rules).