Different Types of Life Insurance Policies

Types of Life Insurance Policies

The life insurance sector is one of the fastest growing finance related segments in India. There are many different products, each with a variety of offerings. Right from fueling investment needs to meeting different financial goals, they come with many objectives for the investor. Here are a few common types of covers, including whole life and term insurance policy.

1.Endowment Policy

There is a savings remainder connected to such policies. They accompany a predetermined development period, as chose by the insurer. On the occurrence of any unforeseen event of the death or permanent disability, during the tenure of the policy; the sum assured will be received by the said beneficiaries to the policy. On the off chance that the protected survives the term of the policy, the concurred development benefits become payable.

2.Term Insurance

Term insurance policy offers scope just for a set period of time. On the occurrence of death or permanent disability during the tenure of the plan, the beneficiaries will be paid benefits to cover income loss or unpaid debt. Disability can be both partial and aggregate, contingent upon the kind of plan. Be that as it may, if the protected survives the term of the plan, no such benefits are paid.

3.Money or Cash Plans

In these kinds of plans, a bit of the concurred and payable sum assured is come back to the protected individual by the insurance company. This payment is made on a periodical premise, as a survival benefit. At the point when the term expires, the exceptional sum assured is paid as a maturity benefit. However, life risk is covered for the whole measure of the concurred sum assured, regardless of whether a segment of the benefits has just been paid.

4.Whole Life Insurance

Unlike a term insurance policy, whole life plans strive to give you lifelong protection. Such cover comes with death benefits, meaning your family can continue to be financially stable after your death. It also comes with maturity benefits, after the expiry of the term. Most people use this type of policy to create an inheritance or estate for their children.

5.Children’s Policies

These plans can be taken in the name of the child or the parent. However, it is only for the benefit of the child. This helps parents mobilize finances when the child reaches a particular age or stage of life.