Types of Life Insurance Plans

• Life Insurance is one of the fastest growing insurance product in India.

• Right from offering the benefit of investment as well as insurance, having a life insurance policy ensures your and your family’s financial safety.

• There are many types of life insurance products available in India.

• Here are various types of life insurance policies that you can buy:

Introduction

• A term insurance plan is a pure protection plan that offers financial coverage to a policyholder only for a specific period of time.

• This is the most affordable form of life insurance as it offers high coverage at a low premium.

• Under this type of life insurance plan, a sum assured is paid to the nominee if the policyholder dies during the term of the policy

Term Insurance

Endowment Policy

• Unlike term insurance plan, an endowment policy pays out the policyholder under both the scenarios i.e. death and survival.

• This type of life insurance offers both the benefit of savings and insurance.

• A part of the premium is allocated towards the life cover while the other part is invested.

• The policyholder is eligible to receive the life cover and accumulated bonuses if any on maturity or after a specific period of time or death of the insured.

Money back Policy

• A money back policy provides periodic payments to the policyholder.

• A survival benefit is paid to the policyholder if he is alive.

• In case of death during the policy term, the nominee receives the full sum assured along with bonuses if any.

Whole Life Insurance

• This type of life insurance provides coverage to the policyholder for as long as he survives.

• This policy is provided for securing an individual till 100 years or for whole life.

• Under this type of insurance, the policyholder is required to pay premiums until his death or for a specified period of time.

• The nominee or the beneficiary is paid the sum assured along with the bonus on death of the insured.

• On Survival till the end of the policy term, the policyholder receives the maturity benefit along with accumulated bonuses.

Unit Linked Insurance Plan

• A ULIP Plan offers the policyholder the benefit of both investment and life insurance.

• A certain percentage of premium is used for life cover while balance amount is invested.

Pension Plans

• Also known as retirement plan, a pension plan is an investment plan that provides you with a steady income flow post your retirement.

• It helps you save a part of your income to build a healthy financial future.

Pension Plans

• A child plan is an insurance plan that helps you build a financially secured future for your child.

• It helps you build a financial corpus to fund your child’s education or marriage.

• It also protects your child in case of your unfortunate demise.

• Recommended Read: Different Types of Life Insurance Policies