LIFE INSURANCE – WHAT IS LIFE INSURANCE AND HOW MANY TYPES DOES IT HAVE?
Life Insurance Works For You As Well As Your Family. If A Family’s Sole Earner Man Of His Go After ” Life Insurance “ May Depend On The People To Some Extent Financial Relief. Life Insurance Is Not Just One Of A Kind. Some Policies Give You The Option To Get Cover As Well As Returns Through Investment.
YOU CAN CHOOSE FROM 7 TYPES OF LIFE INSURANCE POLICY BASED 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 That You Choose. 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 Term Insurance, A Certain Sum Of Money Is Given To The Beneficiary Under The Policy On Death Of The Policy Holder During The Policy Term.
2. Endowment Policy:
This Type Of Life Insurance Policy Has Both Insurance And Investment. This Policy Has 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.
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, The Entire Assurance Gets To The Beneficiary. Although The Premium Of This Policy Is The Highest.
4. Lifelong Life Insurance:
You Get Life-Long Protection In 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 Limit Of Age, Which Is Usually 65-70 Years. After That Death, The Nominee Cannot Take The Death Claim. However, The Nominee Can Claim The Death Of The Policyholder Under The Life Insurance Policy 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, Endowment Insurance Policy And Moneyback Policy, The Returns Are Assured To A Certain Extent, Whereas In ULIPs There Is No Guarantee Of Return. The Reason For This Is That The Portion Invested In ULIPs Is Put Into Bonds And Shares And You Get A Unit Just Like A Mutual Fund. 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.
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 Certain Amount Will Be Paid To You Or To Beni Fesiri As A Pension. This Payment Can Be On A Monthly, Half-Yearly Or Yearly Basis.
7. Child Insurance Policy:
These Plans Are Designed Keeping In Mind The Cost Of Education And Other Needs Of Children. In A 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.
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