Types of Insurance
Term Life Insurance
The term life insurance is a most affordable form of life insurance. Plans under this category have cheapest premiums compared to other life insurance products. In the event of an unfortunate demise during the policy term, nominees will receive the ‘Sum Assured’.
Whole Life Policy
The name of product itself clarifies that it covers an individual for his/her entire life. with insurance and investment components. Whole life insurance builds cash valueand provides permanent coverage. Itcan help to build family’s wealth over the long term.
An endowment plan/policy is a life insurance contract designed to paya lumpsum after a specific term or on death. Typical maturities are up to a certain ages limit. Some policies are also pays out in the case of critical illness.The profits that are availed in such plans are the result of investment in equities & debt.
Unit Linked Insurance Plans (ULIPs)
A Unit Linked Insurance Plan (ULIP) offers the dual benefit of investments to fulfil long term goals and a life cover to protect to family financially in case of an unfortunate event. These plans are linked to the markets and are variant of traditional endowment plans.ULIPs pay out a sum assured and unit fund value on death or maturity which ever be earlier.
Money Back Policy
In the money back policy plans money is returned to the life insured as a survival benefit after a set of periods. When the policy holder survives the policy term, then money back with maturity value will be payable to him . In the event of the policy holder’s death, the nominee receives the death claim as well as any accumulated bonuses if any.