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Types Of Life Insurance Policies in India

Submitted by admin on October 7th, 2024

Life Insurance Policies in India

Choosing from the different types of life insurance in India is an important financial decision that helps to keep the loved ones protected from the uncertainties in life. But it’s probably that you are not fully aware of the types of life insurance policy in India and how they impact your financial health as a whole. Let’s check out the types of life insurance and their benefits in detail below:.
There are the following types of life insurance available in India : [1]

• Term insurance
• Term insurance with return of premium
• Unit Linked Insurance Plans
• Endowment plans
• Moneyback policy
• Whole life insurance
• Group life insurance
• Child Insurance Plans
• Retirement Plans

Now, let us delve more into these categories so that one can understand how to choose one of the types of life insurance policy in India

1. Term Insurance Plan

Insurance plan is the most sought form of life insurance policies in India. This is one of the kinds of life insurance policy in India through which you can buy for a specific period of 10, 20, 30 years, more or anything as you would like hence the name.

2. Term Insurance with Return of Premium

Term insurance plan is another type of life insurance plan. The main benefits which come in this plan are the death benefit and no maturity benefit.

3. Unit Linked Insurance Plan (ULIP)

At some stage in your life, you realize that you are between these two choices; either investment or insurance.

4. Endowment Policy

Endowment policies are one of those types of life insurance policies that give you the combined benefit of life insurance and savings. Along with giving you the life cover, these types of life insurance help you save money regularly over a period to get a lump sum at maturity.

5. Moneyback Policy

The aim of investment in the life insurance policy in India for your near and dear can be to create wealth over a long period. However, most of the types of life insurance do not provide any provision to get funds before their tenure ends. It is here that a moneyback policy plays a vital role in solving the problem of liquidity.

6. Whole Life Insurance

You are paid benefits as per the types of life insurance that you have chosen. The difference between a whole life insurance plan and other kinds of life insurance is that it covers the life of the insured person for his lifetime, that is, up to 100 years.

7. Group Life Insurance

Just like group health insurance, group life insurance is one of the types of life insurance policies which covers a group of people under one master policy. Such life insurance types are generally provided as part of an employment benefit.

8. Child Insurance Plans

According to diverse needs, there are various kinds of life insurance. Some of the child plans are investment+insurance plans that can be utilized for your child’s future financial requirements. A child plan insurance helps you build wealth for fulfilling your child’s future requirements, such as education needs.

9. Retirement Plans

Retirement Plans comes in the category of life insurance plans that help you create wealth and give financial security after retirement. When you retire, you will receive the amount in the vesting period as a pension.