Most Popular Types of Life Insurance Policies In India
Published On Mar 25, 2021, Updated On Apr 26, 2021
Table of Contents
Purchasing a life insurance policy is one of the most essential things to be undertaken in life. It helps you secure the future for yourself and your family members. Some life insurance plans also help in creating a significant investment corpus for short-term and long-term financial goals.
There are several types of life insurance policies. Each of them has different purposes, covers and other benefits. According to your convenience, situation and financial condition, you may choose to buy from any of them.
Also Read:- Tax Benefits Under Term Insurance Plans in 2021
Popular Types of Life Insurance Plans in India
Check out the most popular types of life insurance policies in India, below.
1. Whole Life Insurance
This is undoubtedly one of the most common and popular types of life insurance policies purchased by Indians. It provides you complete cover till your death. On your demise, your family will receive the death benefit which is equal to that of the entire sum assured. You can also take out a cash value against this amount as and when required. If you are unable to pay back any loan before your death, it is taken out from the death benefit under this plan.
2. Term Life Insurance
A term life insurance provides coverage for the policyholder, for a certain period of time, which is known as the “term” of the life insurance. It is one of the best life insurance policy options for any age. The death benefit is paid out to the beneficiaries only if the insured person dies within the policy term. It can again be divided into level, increasing and decreasing term life insurance and is a very affordable option.
3. Retirement Plans
Most people dread retirement and the stagnation of income that comes with it. However, with a robust life insurance retirement plan, you no longer have to worry. It is considered one of the best ways to secure your future once you retire. Plans under this type mature after a certain period, on which you will receive a regular income amount which is also known as an annuity.
4. Child Insurance Policy
In this harsh world of financial grit, one of the best gifts you could give to your child is in the form of a child insurance policy. This is especially beneficial if you have growing children. Under this plan, your child, on becoming an adult, can withdraw regular amounts from the sum insured. Some plans also allow for withdrawals before one becomes an adult.
5. Endowment Plan
Getting an endowment plan is one of the best ways to ensure savings as well as coverage. Under this type, the policyholder receives the sum assured if they live beyond the policy term. If they do pass away during the policy term, their beneficiaries receive the death benefit as well as a participating profit.
You May Also Like to Read:- How Much Additional Life Insurance Coverage Do You Need?
There are a large variety of life insurance policy types available, that cater to different concerns and situations. To make the best choice, look into your personal needs and circumstances before purchasing a plan!