In this article I will be writing about the different types of Life Insurance Plans in the market. As we know that Life Insurance is important for everyone to protect their family incase of their demise the insured money will save their family for educating their children and marriage of daughter, etc. According to your needs, one can choose their Life Insurance Scheme. This article presents the very basic knowledge on different Life Insurance plans and how it will benefit you in the future. If you have any doubts, please post it in the comments section. You can subscribe to our future articles here.
Term Insurance Policy
This policy is pure risk cover with the insured amount will be paid only if the policy hold dies in the period of policy time. The intention of this policy is to protect the policy holder’s family incase of death. For example, a person who takes term policy of Rs.500000 for 20 years, if he dies before 20 years then his family will get the insured amount. If he survive after 20 years then he will not get any amount from the insurance company. It is the reason why term policies are very low cost. So, this type of policy is not suitable for savings or investment.
Whole Life Policy
As the name itself says, the policy holder has to pay the premium for whole life till his death. This policy doesn’t address any other needs of the policy holder. because of these reasons this kind of policy is not very popular or insurance company not suggesting to take this policy.
It is the most popular Life Insurance Plans amoung other types of policies. This polciy combines risk cover with the savings and investment. If the policy holder dies during the policy time, he will get the assured amount. Even if he survives he will receive the assured amount. The advantage of this policy is if the policy holder survives after the completion of policy trnure, he receives assured amount plus additional benefits like Bonus,etc. from the insurance company. In this kind of policy, policy holder receices huge amout while completing the tenure.
In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.
Money Back Policy
Money Back Policy is to provide money on the occasions when the policy holder needs for his personal life. The occassions may be marriage, education,etc. Money will be paid back to the policy holder with the specified duration. If the polciy holder dies before the policy term, the sum assured will be given to his family. A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable.
This article explained the very basic knowledge on different types of Life Insurance Plans. There is some other policy also available in the market but I did not write about it because these are the popular policies. If you have any doubts please post it in the comments section. Thank you for reading this article.
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