Term life insurance policy

Endowment policy

Provides coverage for a specified term

Provides both life insurance coverage and savings

Pays a death benefit if the policyholder dies during the term

Pays both a death benefit and a maturity benefit

Term life insurance policy provides only death benefit

Endowment policy pays a maturity benefit if the policyholder does not die during the term

Premiums for a term life insurance policy are generally lower than premiums for an endowment policy

Premiums are generally higher for endowment policy as it provides both coverage and savings

Term life insurance policy does not include any investment component

Endowment policy includes an investment component

Term life insurance policy does not include any savings component

Endowment policy includes savings component

May offer more flexibility in terms of coverage, as the policyholder can choose the term length

Endowment policy sets the policy term

Policy term is always shorter than the term for endowment policies.

Policy term is longer than the term for a term life insurance policy, as the endowment policy includes a savings component.

Premiums for a term life insurance policy are generally lower than premiums for an endowment policy, but the maturity benefit of an endowment policy is lower than the death benefit of a term life insurance policy

Premiums for endowment policies are generally higher than premiums for a term life insurance policy and the maturity benefit of a term life insurance policy is higher than the death benefit of an endowment policy