Life insurance works for you as well as your family.
If someone is the only earning person in the family, then after that, life insurance can provide some financial relief to the people dependent on him. Life insurance is not just one of a kind. Some policies give you the option of getting returns through investment along with the cover. You can choose from 7 types of life insurance policies depending on your need…
1. Term Insurance Plan
This plan can be purchased for a fixed time, such as 10, 20, or 30 years. Under this plan, you get coverage for a tenure of your choice. In such a life insurance policy, there is no maturity benefit. These provide life cover without savings/profit component. So they are cheaper than other policies. In terms of insurance, a certain sum of money is paid to the assured beneficiary under the policy on the death of the policyholder during the policy term.
2. Endowment Policy
This type of life insurance policy has both insurance and investment. In this policy, there is a risk cover for a fixed period and the assured sum is returned to the policyholder along with the bonus at the end of that period. The face value of the policy amount is paid under the endowment policy after the death of the policyholder or after a specified number of years. Some policies also pay in case of critical illness.
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3. Moneyback Insurance Policy
This policy is a kind of endowment policy. There is also a combination of investment and insurance in this policy. The difference is that in this life insurance policy, along with the bonus, the assured is returned in installments only during the policy term. The last installment is available at the end of the policy. If the policyholder dies during the policy term, then the entire assurance gets to the beneficiary. Although the premium of this policy is the highest.
4. Lifelong Life Insurance
You get lifetime protection in the Whole Life Insurance Plan. That is, there is no term of the policy. Upon the death of the policyholder, the nominee gets an insurance claim. Other life insurance policies have a maximum age limit, which is usually 65–70 years. After death, the nominee cannot take the death claim. But under the Life Insurance, the nominee can claim the death of the policyholder even at the age of 95. The premium of this policy is very high. Under this policy, the policyholder has the option to partially withdraw the insured sum. Apart from this, he can also take money in lieu of the policy as a loan.
5. ULIP
This plan also has both protection and investment. In traditional ie endowment insurance policy and moneyback policy, the returns are certain to a certain extent, while there is no guarantee of returns in ULIPs. The reason for this is that the portion invested in ULIPs is put into bonds and shares and you get a unit just like mutual funds. In such a situation, the returns are based on market fluctuations. However, you can decide how much of your money should be invested in shares and how much money should be invested in bonds.
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6. Retirement Plan
Life insurance cover is not available in this plan. This is a retirement solution plan. Under this, you can create a retirement fund by assessing your risk. After a fixed period, a fixed amount will be paid as a pension to you or to Beni Fesiri after you. This payment can be on a monthly, half-yearly, or yearly basis.
7. Child Insurance Policy
These plans are designed keeping in view the expenses and other needs of the children. In the child plan, a lump sum is paid after the death of the policyholder but the policy does not end. All future premiums are waived and the insurance company continues to invest on behalf of the policyholder. The child gets money for a certain period.
