Life Insurance Policy

Life Insurance Policy and Types

Why Life insurance is needed

Life Insurance can ensure financial freedom for his/her family members after death. Suppose you are the one who earning member in your family, supporting your spouse and children. then you can get benefit with this life insurance policy.

There are different types of life insurance plans
1) Term life insurance
2) Unit linked insurance plans (ULIPs)
3) Money back insurance policy
4) Endowment life insurance plan
5) Whole life insurance
6) Child insurance policy
7) Retirement insurance plan

1) Term life insurance:

A term life insurance policy is most affordable life insurance plans that you can buy. It provides coverage for death insecurity for a specified period. In the case of death of the policyholder, the sum determinant amount is paid to the nominee in lump sum or as monthly pay-outs. This type of life insurance gives you maximum coverage with minimum premium.

2) Unit linked insurance plans (ULIPs)

ULIPs give you the triple advantage of insurance, resources structure and tax-saving investment. In ULIPs the money that you pay as premium is partly invested on funds and hazard cover. You can choose the funds to invest depending upon your risk ambition and investment horizon.

3) Money back insurance policy

In this type of life insurance policy the insured receives a specified sum in intermission during the policy term as well as sum assured amount on death or on maturity. Investors also get increase bonuses on maturity.

4) Endowment life insurance plan

endowment plans is types of life insurance that offers a mix of insurance coverage and investment chance. Sum assured is paid to the nominee or family in case of death or sum assured amount plus compiled bonus in case the insured outlives the policy period.

5) Whole life insurance

A whole life insurance covers the insured during the entire lifetime of the personal or in some cases up to 100 years. Sum assured is paid to nominee on death of the policy holder. In the rare event that the policyholder lives more than 100 years, the maturity amount is paid to the insured.

6) Child insurance policy

A child insurance plan helps to build deposit for important events in a child’s life such as higher education, external studies, marriage, etc. Most child plans provide one time pay-out or annual payments after the child reaches 18 years of age.

7) Retirement insurance plan

This type of insurance plan helps you build a substantial amount of capital to live a concern-free retirement life. You can choice for annual payments after the age of 60 years. In case of the death of the insured, payment is made to the nominee either based on coverage, fund value or 105% of premiums paid.

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