Types of life insurance

Types of life insurance

Insurance may be a contract between the insurer (Insurance Company) and therefore the Insured (policyholder) during which the Insurer guarantees the advantages (sum insured against the policy) in exchange for specific premiums. It provides security and support when necessary.

After briefly learning the definition and introduction of insurance, let’s now understand what life assurance is.

You must have heard of the term “life insurance”, but does one know the meaning of life insurance?

Insurance is insurance that gives risk coverage and provides support by covering the family’s monetary needs after the death of an insured. Simply put, it’s a backup plan that creates your life easier.

Several insurance companies within the insurance market offer different types of life assurance policies with attractive coverage benefits. you’ll compare and choose an idea consistent with your needs and requirements.

Term life assurance –
This plan is for a hard and fast period, that is, 15 years, 20 years, 30 years, etc. It provides death benefits to the insured if the insured dies during this specific period of the plan. it’s the foremost affordable plan that gives high coverage at low premiums.
Benefits are paid during a payment, within the sort of monthly payments or both combined, counting on the policy.

1. Full life insurance: because the name implies, this policy extends to the whole lifetime of the insured and doesn’t end after a selected period like other policies. This has death benefits and a cash value that helps you survive for all times. you’ll partially withdraw money or apply for a loan in your policy.
2. Personnel policy – this is often almost like the insurance policy, but it’s additional benefits also as death benefits. albeit the insured survives or exceeds the expiration date of the policy, the insurance firm can pay a payment against the policy.

3.Refund Policy
This policy has several survival benefits. Provides periodic payments to the insured for the whole duration of the contract and therefore the remainder of the sum insured after the expiration of the contract. just in case of death, the entire amount is paid to the candidate.
4.Annuity / pension plan –
This policy helps you save during your entire working life and therefore the Insured receives the quantity received because of this premium, at the time of retirement, either within the sort of regular income or within the sort of capital, counting on the plan and its modalities.
5.Savings and investment plan –
This plan helps you economize regularly and provides funds for your future expenses, helps you reach your short or long-term financial goals. additionally, to the present route, death benefits also are provided as a part of this plan.
6. Unit linked insurance plan (ULIP) –
This plan may be a combination of insurance and investment. However, the premium is paid, monthly or annually, a part of this premium goes to the insurance and therefore the other part is invested in assets chosen by the Insured. The insured also can partially withdraw the quantity.
7. Child insurance policy: under this, future financial needs, that is, education, marriage, etc. they’re covered. The policy is taken from the child’s parents. within the event of the death of 1 of the oldsters, the child’s future is assured because the policy provides support at different stages of life, counting on the policy chosen by the policyholder.