Here is Your Guide To Different Life Insurance Plans
Updated On Apr 26, 2021
Table of Contents
Life is precious but if your loved ones are dependent on you for their financial needs, your life becomes even more valuable. In case of your unexpected demise, to let them remain stable financially, one may opt for life insurance.There are numerous life insurance companies that offer different categories of life insurance plans as per the policy seekers' requirement. The major types of life insurance plans are listed below:
1. Term Insurance Plan
Term life plans offer financial cover as death benefit in terms of death benefit which can be opted on different lump sum payout options.This policy is suitable for those policy holders who do not expect any return for their premiums paid at the time when the policy matures i.e. the plan do not cover any maturity benefit.
2. Endowment Plan
Endowment plans feature both financial advantages, a death cover and maturity benefit to the policy holder. If you opt for an endowment plan, you are benefited with a maturity benefit that aids you with financial support after your retirement. These plans are usually less riskier than other plans as the savings you get as a return of your premium are pre-determined and away from market risks.
3. ULIP Plan
ULIP (Unit Linked Insurance Plan) are plans that offer double benefit to the policy holder with a life cover plus investment plan. A part of the p premium paid by the policyholder is is paid as a premium for life cover and a part of it is invested in a pool of funds.
The fund invested by the policyholder is managed by a fund manager and allocated by the insurance company and one can switch between them as per market variations. The plan hence benefits the investor with a good share of return for his savings along with a death benefit.
4. Whole life Plan
Whole life plans are extended plans that give cover up to the age over 100 years with both the death benefit and maturity benefit to the policy holder. These plans give a life cover till the policy holder lives, mentioned that the premiums , terms and conditions of the policy remain constant throughout the plan term. Under these plans the policy holder can even lend a loan against the policy.
5. Money Back Plan
As per.the name of the plan, a money-back plan benefits the insured with regular money-back payouts called survival benefits. At the time of maturity the insured gets the sum assured less of the survival benefits already paid. A distinguishing feature of this plan is that in case of the death of the insured within the policy term ,the claimant gets the total sum assured irrespective of the benefits already paid out.
Thus we can see that there are a bunch of life insurance plans in the market, and each plan benefits the policy holder with its unique features; but at last all are life insurance plans that provide you a cover in exchange for your precious savings which you pay as premiums. With a cool mind one must examine his requirements, his financial goals and in accordance with that choose a plan that suits him and his family the best and yes in the case ' you stay alive or not'.
Also Check: Why Is It Important To Have Life Insurance?