Six Different Types of Life Insurance

Life Insurance is an inseparable part of your financial planning because it gives financial protection to policyholder’s family if something untoward happen to an insured person. In Indian insurance market, various types of life insurance plans are available.

Whole Life Insurance Plan

As the name suggest, it covers policyholder for the ‘whole of your life’ means it protects you as long as you alive. Whole life endowment plan is a slight variation of whole life insurance and will cover your whole life practically. It offers the provision for maturity benefit as well after a considerably long interval.

Term Plan

This is simplest type of policy in which customers purchase this cover for a certain number of years and at a specific premium rate. If insured person dies during the tenure of the policy, then nominee will receive the sum assured.

Money Back Plan

Under money back plan, the insured person receives a percentage of the sum assured at regular intervals, instead of getting the lump sum amount. Basically, it is a type of endowment plan with liquidity benefits. The claim amount comprises the complete sum assured in case of policyholder’s death during the policy tenure. In fact, no deductions are made to the survival benefit money which has been paid already.

Endowment Plan

This life insurance policy made to pay a lump sum amount after a specified tenure or on death. Endowments can be cashed in early and then insured gets the surrender value calculated by the insurer based on how long the plan has been active and how much has been invested into it.

Retirement Plan

The major objective of retirement plan is to create a sufficient financial corpus to take care of the basic income flow post retirement. This insurance is considered as a retirement solution which can help policyholders with continue flow of income to maintain their current standard of living.

ULIPs

Unit linked insurance plans involve benefit and risk of investment related to the capital markets. Before opting for ULIPs, do not forget to consider your needs and risk appetite. Various life insurance plans are available online to fulfill your goals, be it marriage, child’s education, health, retirement planning etc.

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