Types of Life Insurance Plans in India

It is an important financial decision to choose from the different types of life insurance plans available in the market. This is because it helps you in protecting your family members from different uncertainties in life. It is possible that you may not be completely aware of the different life insurance plans available in India and how it can affect your financial stability. Let us know about different life insurance plans:

• Term Insurance Plan

  It is one of the most popular types of life insurance policy available in India. This insurance plan can be bought by you for a specific duration of 10, 20, 30, or more years. A term insurance plan does not offer maturity benefits unlike other life insurance plans. Therefore, it is one of the major reasons why it is comparatively more affordable than any other life insurance plans.

Must Read: How Are Term Life Insurance Premiums Calculated?

• Unit Linked Insurance Plan

  A ULIP is a type of life insurance cover that offers the best of both worlds under a single plan i.e. investment as well as insurance coverage. This insurance plan has a lock-in period of 5 years, thus making it a long term investment tool that comes alongside risk protection.

• Endowment Plan

  These insurance plans are the type of life insurance policies that offer the policyholder with the combined benefit of savings and life insurance. Endowment plans alongside giving you life insurance coverage, also helps you in saving the money regularly over a time period in order to get a lump sum amount at the time of plan maturity.

• Money Back Plan

  The main aim of investing your hard earned money in an insurance plan is to be able to build wealth for your family members over an extended time period. Under this insurance plan, a percentage of sum assured is paid to the policyholder throughout the plan duration, unlike other forms of life insurance plans that do not offer any returns till plan maturity.

• Child Insurance Plan

  A child insurance plan is a type of life insurance policy that offers both investment as well as insurance under a single plan. This plan helps you in meeting the future financial requirements of your child such as marriage plans, education etc.

• Retirement Plan

  Retirement plans are the type of life insurance policies that offer you financial protection and assists you in creating wealth post your retirement. Under this plan, the policyholder would receive money in the form of pension during the vesting period. In the event of your untimely death during the plan tenure, the nominee appointed by the policyholder would get the death benefit.

• Whole Life Insurance

  A whole life insurance plan provides insurance cover to the policyholder for their entire lifetime i.e. up to 100 years. Generally, under a whole life insurance plan, the death benefit is payable to the nominee in the event of untimely death of the policyholder. Also, a policyholder is eligible to get maturity benefit under a whole life insurance plan in case they cross 100 years of age.

Also Read: Term Insurance Benefits

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.