Selecting from the various types of life insurance offered in India by top insurance companies is an important financial decision. When you want to protect your loved ones from the uncertainties of life, then you would obviously want to opt for most suitable life insurance policy. Many types of life insurance policies are available and it is important to understand how they affect your financial health. Here's a brief guide to different types of life insurance policies that are being offered here in India:
Term Insurance Plan
Term insurance is pure life cover, unlike other types of life insurance policies which have a saving component and provides death risk cover for a specified period. In case the life assured passes away during the policy period, the life insurance company pays the death benefit to the nominee.
Term Insurance with Return of Premium
This is one of a kind of term insurance plans that give back the premiums you pay on surviving the policy period and, therefore, considered as one of the best insurance policy in India, which also give you maturity benefits.
Unit Linked Insurance Plan (ULIP)
As the name suggests, these policies are linked with the capital market and thus a comprehensive combination of insurance and investment. ULIPs also allow you to balance your funds as per market dynamics.
Endowment policies offer you with the combined benefit of life insurance and savings. Apart from providing you the life cover, these types of life insurance help you save money regularly over a period to get a lump sum at maturity. The endowment policy is helps you to fulfill long-term goals in life.
As the name suggests, moneyback policies are one of the popular types of life insurance policies in India that give money back on regular intervals. In a moneyback policy, a percentage of the assured sum is paid throughout the policy tenure, unlike other plans that offer no returns till maturity.
Whole Life Insurance
A whole life insurance policy covers the life assured for whole life, or in some cases, up to the age of 100 years. Unlike, term plans, which are for a specified term. Few whole life insurance plans also plans offer the option to pay premium for the first 10-15 years while you get the benefits for the entire life.
Child Insurance Plans
This plan empowere you to meet the child’s financial needs. This plan helps you create wealth for your child’s future needs like education and marriage. Parents can start investing in children plans from the birth of your child.
Retirement plans gives you financial security and help you with wealth creation post your retirement. You get a sum of money as pension in the vesting period and in case of your untimely demise during the policy term, your nominee will get the death benefits. Retirement plans thus offers protection to you and your family.
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