What Type Of Life Insurance Should I Purchase?

There are different types of life insurance policies available in the market. The different types of life insurance plans are Term Insurance, ULIPs, Endowment Plans, Money-Back Plans, Retirement Plans and Child Life Insurance Plans. All of these plans have different benefits to offer.

Before purchasing any type of life insurance plan you must know what is offered under different types of life insurance plans. 

What Type of Life Insurance Plan Should I Purchase ? 

Following are the different types of life insurance plan that you can choose from:

1. Term Insurance

Term insurance plans are also called protection plans. This type of insurance plan provides life cover and financial security to your family in case something unfortunate happens. In case the life assured passes away during the policy term, the insurance company will provide a death benefit to the family of the life assured. This plan provides financial security to your family in your absence.

2. Endowment Plans

Endowment plans provide a combination of life cover and savings. This type of plan offers maturity benefits in case the life assured survives the entire policy term. This plan also offers death benefits in case of an unforeseen demise of the life assured during the policy term. Endowment plans offer risk free returns.

3. Unit-Linked Insurance Plans

ULIPs provide dual benefits of life insurance and flexibility in investment. This plan helps the life assured to invest in different market-linked fund options such as equity, debt and cash funds. This plan lets the life assured grow his/her corpus for a financially secured future. 

4. Money-Back Plans

Money-back plans offer guaranteed payouts at regular intervals during the policy term which are known as survival benefits. This plan also offers a maturity benefit after deducting the regular payouts made during the policy term. In case of an unforeseen demise of the life assured during the policy term, a death benefit is provided to the family of the life assured irrespective of regular payouts made during the policy term.

5. Retirement Plans

Retirement plans are also known as pension plans that help you grow your corpus for your post-retirement phase of your life. These types of plans offer maturity benefits and ensure you are financially independent post your retirement.

6. Child Life Insurance

Child life insurance plans provide dual benefits of investment and insurance. These plans are created for parents who want to provide for their child’s future financial expenses. These plans offer a maturity benefit that can be used to overcome your child’s future expenses such as higher education, marital expenses, extra curricular activities etc. Child life insurance plans offer waiver of premium benefit and allow partial withdrawals. 

Conclusion

Now that you know about the different types of life insurance plans and what are the benefits offered under the different types of life insurance plans. Above mentioned information about the different types of life insurance plans will help you make an informed purchasing decision.

Also read - 5 Tips To Buy Term Insurance Plans In India

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.