Tuesday, 26 August 2025

Pure Risk Life Insurance Plan vs Savings Life Insurance Plan – Which one is right for you?

When it comes to protecting your family’s future, insurance plays a big role. But with so many options, how do you decide what fits best? “Pure Risk Life Insurance Plan” and “Savings Life Insurance Plan” often seems similar, but they serve very different purposes. It’s crucial to understand these differences to make an informed choice that aligns with your financial goals and objectives, while ensuring adequate protection for your loved ones.

Let’s break it down in simple terms.

What is Pure Risk Life Insurance Plan?

Pure Risk Life Insurance Plan is like a safety net for your family. You choose a cover amount (say ₹1 crore) and a time period (like 20 or 30 years). If something happens to you during that time, your family gets the money. If you outlive the policy, it ends – no payout, no returns.

It’s pure protection.
It’s affordable.
Great if you want large coverage at low premiums.

What is Savings Life Insurance Plan?

Savings Life Insurance Plan offers more than just protection. It covers you for life (or a long period) and also includes a savings or investment component. If you live through the policy term, you still receive a payout. If not, your family gets the benefits.

Offers a mix of protection and savings.
Comes with higher premiums.
Some plans also grow your money over time.

Quick Comparison

Feature	Pure Risk Life Insurance Plan	Savings Life Insurance Plan
Cost	Low premiums	Higher premiums
Coverage	Fixed term	short-term, Lifelong or long-term
Returns	None	Yes – depends on plan
Payout	On death during policy term	On death or policy maturity
Main Purpose	Protection	Protection + wealth creation

Pros & Cons

Pure Risk Life Insurance Plan	Pros Affordable/Budget-friendly Large coverage at low cost Pure Protection	Cons No returns if you survive No savings or investment benefit
Savings Life Insurance Plan	Pros Short-term, or Life-long coverage Builds value over time	Cons Higher premiums

Take your pick

This needs to be a well thought out decision which will depend on multiple factors.

A Pure Risk Life Insurance Plan plan would be a good option if

You are young or have dependents.
You need big protection without breaking the bank.
You have time-bound responsibilities.
You want pure safety, not savings.

A Savings Life Insurance Plan plan would be better if

You are planning long-term – it could be retirement or estate planning.
You are okay to pay more for both protection and savings.
You want a fallback that pays out even if you survive the policy period.

You may also look at a combination of both – term insurance for serious coverage, and life insurance for long-term savings and legacy.

Don’t make a rushed decision

Insurance is never a “one-size-fits-all”. It’s about your family, your budget, and your goals. If your priority is affordable protection today, go for Pure Risk Life Insurance Plan, like our Super Suraksha Term Plans.

If you would like both protection and some savings, and you can manage higher premiums, Savings Life Insurance Plan can work for you.

Think through the real purpose of this insurance before making a decision.

Mktg/RNLIC/blog_termvsLI/V1/Jul25

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