There are various types of life insurance plans aimed to provide you with financial security, wealth creation, child’s future protection and much more among others. Under each plan, a life insurance company may choose to offer more than one, different products.
Now let’s check out different types of life insurance plans available in India.
Term Life Insurance Plan
As the name suggests, the term life insurance plan stands for a life insurance policy that is purchased for a fixed time period, for instance, 10/ 20 or 30 years. Since these plans do not carry any cash value, they not carry any maturity benefits. Therefore, term life insurance plans are cheaper when compared to other life insurance policies. Term life insurance plan is beneficial only in case of the occurrence of the event. To know more about Term Life Insurance Plans, Click Here
Unit Linked Insurance Plan (ULIP)
Unit Linked Insurance Plans or ULIP plans provide the policyholders with the financial protection to build wealth as well as security for life. Premiums that you will pay under this plan are bifurcated into 2 parts: One for the purpose of Life insurance and the other one for the purpose of building wealth. ULIP plan provides with the option to partially withdraw the amount. To know more about Unit Linked Insurance Plans (ULIP), Click Here
The only difference between the endowment policy and the term life insurance plan is that endowment policy comes with the additional benefit that the policyholder will get a Lump Sum amount if he/she survives until the policy maturity date. Rest of the details of the term life insurance policy are similar and they also applicable to an endowment policy. To know more about the Endowment Plans.
Money Back Plan
Money back life insurance plan is alike endowment policy. However, the only dissimilarity is that this policy offers several survival benefits that are allotted proportionately over the time period of the policy tenure. To know more about Money Back Plans.
Whole Life Insurance Plan
Contrasting to other policies which end at the end of a particular period of time, the Whole Life Insurance Plan extends up to the entire life of the insured. This life insurance policy also offers the survival benefit to the insured. Under this type of life insurance plan, the policyholder is provided with an option to partially withdraw the Sum Assured. The policyholders will also have the alternative to borrow sum against the policy under this plan. To know more about the Whole Life Insurance Plans.
Pension/ Retirement Plan
Under Pension or Retirement policy, the amount is collected in the form of a premium and it is accumulated as assets. The amount is later distributed to the policyholder in the form of income by means of pension or Lump Sum on the basis of the instruction of insured. To know more about the Pension/ Annuity/ Retirements Plans,Click Here
A child plan essentially is an important tool when it comes to generating money for the insured’s child. A child plan can help accumulate funds chiefly for a child’s education and wedding. On the whole, child plans offer their benefits either in the form of installments on a yearly basis or in the form of a onetime-payment to the insured child when he/she reaches the age of 18 years. To know more about Child Plans, Click Here
Group Life Insurance Plans
Group life insurance plans are basically a specific kind of life insurance plan that has been to cover the entire group of people under a single plan. In general, the policy owner is an employer or an entity like a labor organization or corporate office and the policy offers coverage to the members or employees of the group. To know more about Group Life Insurance Plans, Click Here