Many people take life insurance in our country. It helps in giving some amount of financial assistance to the family of someone in case of his untimely death.
At the same time, some people also use it to get returns through savings and investments.
Do you know that there are eight types of life insurance policies in India?
Today we are going to tell you about them in brief.
Insurance Policies
- Term insurance plan
- Endowment policy
- Moneyback Insurance Policy
- Savings and investment plan
- ULIP Life Insurance
- Life insurance policy
- Child insurance policy
- Retirement policy
Term insurance plan
- This policy is purchased for a fixed tenure like 10, 20 or 30 years. It provides coverage for a period.
- Maturity benefit is not available in this policy and it provides life cover without any savings and profit component. So it is a bit cheaper.
- In this, if the policyholder dies during the term, the sum assured is given to his/her nominee.
Endowment policy
- This policy has both insurance and investment.
- The policy holder who takes this gets a risk cover for a certain period and after the end of this period, a certain amount along with bonus is returned to him.
- Many such policies also pay at the time of illness. On the other hand, if the policy holder dies, the face value of the policy amount is paid to the nominee.
Moneyback Insurance Policy
This is largely an endowment policy. What is different in this is that in this the assured amount along with the bonus is returned in installments during the term itself. Its last installment is available at the end of the policy. These are expensive.
Savings and investment plan
- This type of life insurance policy assures the holder and his family to simultaneously provide funds for future expenses.
- Such policies not only provide the means to achieve short- and long-term financial goals, but also assure the assured amount to the family of the holder in the form of insurance cover.
- Such a policy covers both traditional and unique linked plans.
ULIP Life Insurance
- This type of policy has both protection and investment.
- The returns you get in endowment life insurance and moneyback policies are assured to some extent, but returns are not guaranteed in ULIPs.
- Actually, the portion invested in ULIPs is invested in the stock market and bonds. On profit, you get one unit of it like a mutual fund.
- In such a situation, the returns are completely dependent on the behavior of the stock market.
Life insurance policy
- As the name suggests, the holder gets a lifetime cover. This policy has no term.
- In case of death of the policy holder at any age, the nominee gets the claim of insurance.
- Any other insurance policy usually has an age limit of 65-70 years, but there is no such limit in this policy.
- The holder can partially withdraw the sum assured of the policy. It is quite expensive.
Child insurance policy
- Such a policy is designed keeping in view the other needs of the child including education and future expenses.
- In this, a lump sum amount is paid after the death of the policyholder. Despite this, the policy does not expire.
- The insurer continues to make investments on behalf of the policy holder and all premiums for the children of the holder are waived off.
- Children get money for a certain period.
Retirement policy
In this, the holder does not get life insurance cover. Under this, the holder creates a retirement fund. After the specified period, the holder gets a fixed amount as pension.
