We list the different kinds of life insurance policies available, that can help you as per your future requirement.
Buying life insurance has become the need of the hour for every person who wishes to create a financial safety net for themselves and their loved ones. However, there are different kinds of life insurance – and you can even buy life insurance policies online from reputed insurance providers in India.
The following different types of life insurance policies are available in India:
* Term insurance: This type of life insurance has a high life coverage amount at affordable premiums. However, it has only a death benefit. There is no maturity benefit ingrained in the policy, i.e. you cannot get back any bonuses or the premiums paid in case you outlive the plan term. But the high sum assured is enough to cover your family’s future needs in your absence.
* Endowment policies: The endowment plan is a type of life insurance that gives maturity benefits and bonuses once the plan term is over. This means that you can time its tenure/term to coincide with important future milestones, such as paying for your child’s foreign education, or making a down payment on a second home, etc. The plan also has a death benefit and waiver of premiums in case of the policy holder’s untimely death while the policy is in force.
* Whole life policies: This type of life insurance does not have a fixed ending date of termination or maturity. Only a death benefit is ingrained in it. As the policy holder, you do not get any of the sum assured or any bonuses during your lifetime. Since there is only a large death benefit and guaranteed cash values, this life insurance plan is suitable for those with large estates.
* Money back policies: The money back policy repays a regular portion of the sum assured amount during the plan’s tenure. They are ideal for those who want life coverage and also regular savings. You can check the rate of return being offered at the time of buying this type of life insurance. Also, the pay-out is exempt from tax.
* ULIPs: The Unit Linked Insurance Plans (ULIPs) are a life insurance policy that invests a part of your premium paid into high grade shares. Thus, apart from life coverage, you also get good capital appreciation over a period of time. With mutual fund exposure, the policy gets guaranteed returns over time.
* Pension plans: These are life insurance plans designed to take care of the policy holder once they quit the workforce. They are of two types – endowment plans and unit-linked pension plans. The rates of return on the former are lower than those on the latter, but the growth is guaranteed.
You can buy life insurance policies online from leading insurance providers after studying their benefits and features.