Description

A life insurance policy is actually a contract with a insurance company. A lump sum amount is provided, in exchange for premium payments, known as the death benefits, to the nominees or beneficiaries upon the death of the insurer. While choosing a life insurance, the advisor will help you to map it needs & goals. This will help you pick out the options that suits you the best. Types Of Insurance : 1 .Term Life Insurance The most affordable form of life insurance, premiums of plan under this category are cheap compared to other life insurance products. In the event of an unfortunate demise during the policy term, Nominees will receive the ‘Sum Assured 2. Whole Life Policy As in the name, this type of policy covers an individual for his/her entire life. This type of insurance covers insurance and investment components. The insurance part covers the nominee in the event of death of the policyholder and the investment component helps the holder to borrow or withdraw against. 3. Endowment Plan One main difference that Endowment Plans offer from term plans is the Maturity Benefit. This type of plan pays out sum assured along with profits under both scenarios - death & survival. The profits that are availed in such plans are the result of investment in equities & debt. 4. Unit Linked Insurance Plans (ULIPs) As the name suggests, this plan is linked to the markets. This type of plan are a variant of traditional endowment plan and pay out a certain sum assured on death or maturity, whichever is earlier. 5. Money Back Policy This type of policy gives out periodic payments over the policy term. In case of the death of the policy holder, the beneficiaries get the full sum assured and if the holder survives the policy term, he/she gets the balance amount (sum assured).