Life Insurance : Know How Many Types Of Life Insurance Policy Are There, Choose According to the Need
Mumbai : To get financial relief, it is very important to buy a life insurance policy. If the person is the only earning person at home, then life insurance gives his family protection from financial risk after he leaves. There are many types of life insurance policies in India that people buy as per their convenience. Some policies offer cover as well as good returns in savings and investment. Before buying life insurance, read their rules, only then choose the policy.
Term Life Insurance- Term life insurance policy is one of the cheapest life insurance policies that you can buy. It provides coverage for death risk for a specified period. In the event of the death of the policyholder, the insured is paid a lump sum or as a monthly payment amount. This type of life insurance gives you maximum coverage with the latest premium. Some insurance companies have brought term insurance plans, where they offer a return of premium to the insured at the end of the policy term. A future general term plan with a return of premium is a term life insurance policy that returns up to 115% of the premium paid to you if you survive to the end of the policy term.
ULIP (Unit Linked Insurance Plans) – ULIP gives you the benefit of insurance, money making and tax saving investment in all three ways. The money you pay in ULIPs is partly invested in the fund and partly on the risk cover. You can choose the fund to invest based on your risk and investment horizon. You can use the ULIP calculator to calculate the amount of corpus you need, based on the frequency of investment, amount and tenure.
Endowment Policy – Like ULIPs, endowment plan life insurance also offers both insurance coverage and investment opportunities. In the case of death or sum assured amount and accumulated bonus during the policy term, the insured is paid the sum assured to the nominee or family.
Money Back Policy – In this type of life insurance policy, the insured gets a specified amount at intervals during the policy period and also the insurance amount on death or maturity. Along with this, investors also get bonuses earned at maturity.
Whole Life Insurance- Whole life insurance is during the person’s entire life or in some cases up to 100 years. The Sum Assured is paid to the nominee on the death of the policy holder. In the rare event that the policy holder survives more than 100 years, the Sum Assured is paid to the insured.
Child Plan- Child insurance plan helps in important events in the life of a child such as higher education, study outside the country, marriage etc. Most child insurance plans provide a one-time payment or annual payment after reaching the age of 18 years. If the parent dies during the policy period, the payment is made to the child or family. At the same time some insurance companies waive the premium in case of death of the policyholder and pay it after the maturity period.
Retirement Plan- This scheme helps you to make sufficient amounts of capital after retirement. You can choose the option of annual payment or single payment after the age of 60 years. In case of death of the insured, the nominee is paid on the basis of 105% payment of coverage, fund value or premium.