Different Types Of Life Insurance Plans In India

By Author: pankaj gautam
Total Articles: 17
Comment this article

Life insurance comes in varied ways for fulfilling divergent needs of different individuals. Each insurance company offers unique plans to their customers. Most of these insurance plans are designed around some basic plans. Let’s find out some of the basic plans which are generally offered by life insurance companies.

Term Insurance: It is considered as one of the simplest forms of life insurance as it gives only risk coverage and there is no element of savings. This policy helps in giving protection for a duration of 5 to 30 years. It is possible to buy term insurance for a large sum assured relatively on a less premium.
Whole Life Policy: The policy which offers coverage for whole life of the individual or upto the expected life expectancy of, say, 80 or 85 years, is known as whole life policy.
Endowment Policy: Such plans are insurance-cum-savings plans for a fixed duration of time. The insured will get amount which will be payable either at the end of a particular number of years or upon the death of the policyholder, whichever comes earlier. The ...
... insurer will also pay bonuses, provided that option is exercised by the policyholder. Endowment plan offers varied options on the basis of individual insurance requirements and objectives.
Unit Linked Investment Plan: A unit linked insurance plan (ULIP) offers both life insurance coverage as well as an investment. Here, the part of the premium goes towards payment of insurance and the remaining amount will be invested in a fund of your choice. ULIPs have gained tremendous popularity due to their flexibility and the dual advantages of insurance & investment.
Children’s Plans: Such plans are commonly used for making a savings for the future of child. Such plans are basically of two types:- cover for the child and for the parent. It is possible to purchase such a plan which can cover your child’s life either now or starting sometime in the near future. There are also such plans which cover parents but gives benefits to children. The investment portion of the policy can coincide with different stages of a child’s life like marriage, high education, graduation, etc.
Pension Plans: As the word itself suggests, it is a plan which is meant to give support after the retirement. It helps in providing you with a steady income even after your retirement. Such plans have two stages: accumulation phase and annuity phase. At the stage of accumulation, you make a contribution to the corpus of the insurance plan. The insurance company makes an investment of premium in varied instruments for earning returns and building a corpus over the term of the insurance policy.IDBI federal life insurance | Indiafirst life insurance