Both types protect your family if the insured person dies, but they work differently.
Term insurance
You pay only for protection for a fixed period. If no insured event occurs, premiums are not returned — just like car insurance. In return, a small premium can buy a very high sum insured.
Savings insurance
Part of the premium pays for protection and part accumulates at a guaranteed return. At the end of the term you receive the accumulated amount. Premiums are noticeably higher than for term insurance with the same sum insured.
How to choose
- If you need maximum protection while you have a loan or small children — term insurance.
- If you need to save a certain amount by a date while protecting your family — savings insurance.
- Combining both often makes sense: a savings contract for the goal and a term policy for large protection.
A Dynasty consultant will calculate both options and compare the terms of several insurers.