Different Types of Life Insurance Plans in India
Published On May 22, 2021 11:00 AM By InsuranceDekho
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We all know that life insurance is vital because it protects our families from multiple financial setbacks in life that can arise as a result of death, injury and sickness. Life insurance plans have grown greatly over the years, and there are currently different forms of life insurance intended to satisfy more of the insurance demands of the insured.
Life without life insurance could be difficult for your family. Below we will address the different types of life insurance plans that are currently available in the region.
Different Types of Life Insurance Plans in India
Here is a brief guide to the various types of life insurance plans. Know the different life insurance policies to pick the best one at the right time.
Term Insurance Plan
The term insurance scheme is one of the most common forms of life insurance plans in India. This is one of the types of life insurance plans in India that you can obtain for a fixed period of 10, 20, 30 or more years, hence the term.
Although some other types of life insurance plans offer maturity advantages, term insurance does not. This is one of the arguments for term insurance. Being India's best insurance package is considerably cheaper than other forms of life insurance policies.
Term insurance is pure life insurance, unlike other forms of life insurance plans that have a saving aspect. You may also qualify for a significant life insurance coverage at a cheaper premium relative to most forms of life insurance plans that are more costly but have built-in savings components.
Term Insurance with Return of Premium
A term insurance policy is one of the types of life insurance programme that offers a death benefit but does not offer a maturity benefit.
If you live a safe lifestyle, the chances that you will get the best insurance policy in India that you have bought will also improve. For some, term premium-return policy is one of the best insurance plans in India, which also offers you maturity advantages.
It's one of the types of term insurance policies that give back the premiums you pay for surviving the insurance term.
Unit Linked Insurance Plan (ULIP)
You can face a life-long dilemma of deciding between either of the two alternatives – savings or insurance.
ULIP is one of the types of life insurance plans in India that cover each of these aspects. Of the various forms of life insurance, it is the one that provides life insurance and investment opportunity.Being one of the forms of life insurance, it has a five-year lock-up, which makes it a long-term savings instrument and liability protection. ULIPs also encourage you to balance your funds according to market dynamics.
Endowment plans are one of the types of life insurance policies that provide you with the added benefits of life insurance and investments. These forms of life insurance can help you save money on a monthly basis over a period of time and get a lump payout at maturity.
What makes them one of the most valuable types of life insurance plans is that they help achieve long-term targets and goals in your life.If you survive the policy tenure, you will also get the maturity number.
Endowment schemes, which are one of the most suitable forms of life insurance plans, can help to build a financial buffer for your family and fulfil the different financial goals of your life.
Money Back Policy
The aim of investing in India's insurance policy for your loved ones may be to build wealth over an extended period of time. However, most forms of life insurance do not allow for any provision to finance them until their term of office expires. It is here that money-back strategy plays a critical role in addressing the liquidity crisis.
As the name suggests, money return policies are one of India's most common forms of life insurance policies that give money back on a regular basis.
It pays a share of the sum assured throughout the insurance duration, unlike most forms of life insurance policies that give no returns before maturity.
Whole Life Insurance
As a life insurance policy holder, you get incentives dependent on the forms of life insurance policies. What separates a whole life insurance package from all forms of life insurance is that it gives insurance coverage to the insured for a lifetime, up to 100 years of age.
The death benefits shall be accrued to the recipient in the event of the early death of the policyholder.In the other hand, you are entitled to earn a maturity bonus under a full life insurance policy if you are over 100 years of age.
Another valuable advantage of these types of life insurance policies is that certain plans offer the alternative of paying premiums for the first 10-15 years, while you get life-long coverage.
Group Life Insurance
Like group health insurance, group life insurance is one of the types of life insurance that is provided by a group of individuals on a master's scheme. In general, these forms of life insurance are offered as part of the work benefit.
A special aspect of all kinds of life insurance policies is that if you are part of the company, you can get insurance coverage.It varies from the various forms of life insurance policies in which coverage lasts beyond the selected policy period.
Child Insurance Plans
A child policy is an investment+insurance plan that lets you fulfil the financial needs of your child. A child insurance coverage will help you build wealth for your child's potential needs, such as college. From the birth of your child, you will start investing in these plans. You have the freedom to spend your hard-earned money in a few funds depending on your financial situation and priorities.
Retirement Policies are insurance programmes that offer income stability that help you build wealth after retirement. With the Retirement Package, in the vesting era, you'll get an amount of money as a pension. In the event of your early death in the policy period, the candidate will receive death insurance. Retirement benefits come with a death benefit as well as a vesting benefit offering security to you and your loved ones.
These are the various forms of life insurance in India, and each type of insurance scheme is oriented towards the accomplishment of different life insurance and investment objectives. When you buy a life insurance policy, don't buy hype, ads, or what your peers or coworkers are doing and your profile and criteria could be different. Don't be lazy to do some thorough research and analysis before you purchase any policy.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.