In today’s era, having a life insurance policy is a must for every individual as it is one of the best ways to secure one’s future along with their loved ones. There are many different types of life insurance policies available in the market.
Life insurance not only covers the risk arising due to an unfortunate event, but also gives you additional benefits like tax benefits, savings and wealth creation over a period of time. The right Life Insurance Plan from a trusted company can help one get long-term risk cover plus savings, i.e. dual benefits from one solution.
TERM PLAN:
Term insurance is a life insurance product, which offers financial coverage to the policyholder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary. One should know importance of term insurance key features and why you should opt for it before buying term insurance.
The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.
There are two ways the individual can take life insurance:
- By opting for a pure life cover, also known as term insurance
- By taking life cover with a savings component built-in,also called endowment insurance.
Traditional Plan:
A type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. Unlike term life insurance, which covers the contract holder until a specified age limit, a traditional whole life policy never runs out. Upon the inevitable death of the contract holder, the insurance payout is made to the contract’s beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.
UNIT LINKED INSURANCE PLANS (ULIPS):
In this type of Life Insurance Plans the Insurance Companies Invest the Funds as per the Instructions of the Policy Holders. The Policy Holder has the option to Invest his money in Equity, Balanced or Debt funds & also he can do switches amongst the same. The Insurance Companies Regularly publish the Full Portfolio of Each scheme where they have invested the funds. They declare the NAV on daily basis. The customer has the choice of selecting the Premium as well as the insurance coverage on a specified premium i.e. he can take more insurance at a specified premium if his main purpose is Insurance & he can take less insurance if his main purpose is Returns.
