What Are the Different Types of Life Insurance Plans?

What Are the Different Types of Life Insurance Plans?

There are basically 7 types of different life insurance plans available in India. In order to make an informed decision in terms of buying the best type of life insurance plan that suits your requirements, you must have proper knowledge and understanding of each type of life insurance plans available today in the market.

  • Term Life Insurance: Term Insurance is one of the cheapest life insurance plans. Under this type of life insurance plan, the insurance company pays a specific amount of money to the nominee or beneficiary on the demise of the insured during the term of the life insurance plan. 

  • Whole Life Plan: While life insurance plan provides you with the coverage for the entire life. Under this type of life insurance plan, the claim is sure to be made since the duration of coverage is the entire life, and the beneficiary is certain to avail the maturity benefit on the demise of the insured. Note that the premium of a whole life insurance plan is higher provided that it covers more risks.

  • Endowment Plan: Endowment plan is basically a mixture of saving and protection. Under this type of life insurance plan, the insurance company provides you with a fixed amount either on the maturity of the policy or on the demise of the insured. The standard duration for endowment life insurance policies is 10/ 15 or 20 years and the premium of the same is high.

  • Money Back Plan: Money back plans are appropriate for people willing to get both protections for their family and some fixed amount of capital during the policy term to meet up various financial requirements.

Under this life insurance plan, the insurance company offers a lump-sum amount on the demise of the insured and an assured amount at certain intervals like 5 years and 10 years. The premium payable under this type of life insurance plan is high.

  • Unit Linked Insurance Plan (ULIP): ULIP plans are basically a combination of a means of investment and protection. Under this type of life insurance plan, the premium received by the insurance company is separated into two parts. 

For meeting the death claims, the first part is sent to the pool of the insurance company. On the other hand, the second part is invested in the market on the basis of the preference of the insured. 

In case of the death of the insured, the Sum Assured together with the returns from the investment is given to the nominee or the beneficiary. Originally, a major portion of the premium amount is given to the insurance pool under Unit Linked Insurance Plans.

  • Retirement Plan: Retirement Plans have been designed to offer the ultimate protection to both the family as well as the insured. This type of life insurance plan is meant to financially safeguard the old age of the insured. 

In accordance with Retirement Plans, you can start investing through annuity plans to build up an amount from where you would get a pension every month after a specific age. You may also make a solo payment under annuity or retirement plan from where you would get the pensions on a monthly basis.

  • Child Plans: Child Plans are basically a type of life insurance plan that has been designed to provide with financial security so that you can manage the future requirements of your child. As a part of the child plans, the child will get a fixed amount of money at certain intervals that help to meet up a range of financial needs of the child such as paying fees for higher education, etc.

Inference: From the above discussion, different types of life insurance plans should be clear to you. Meanwhile, if you are looking for the best life insurance plan as per your requirements, we at GIBL.IN are always here to offer you a helping hand. Feel free to click here and grab the best offers on different life insurance plans from the top insurance companies in India.

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