Do you know what kind of life insurance is there? If you do not know, then it does not matter. Let us know the types of life insurance. You must have heard about life insurance at some time and you will know how important it is in today’s time. If you do not know, let me tell you briefly.
In life insurance policy, you give some amount to the insurance company every month or three months or year. Instead, if you die accidentally, then your nominee gets a fixed amount, so that after you there is no problem in your family’s living, education of children, their marriage, etc. Whether you are from middle class or upper class, you will definitely need life insurance.
But the most disturbing question is, which insurance should be done? You must have heard about your Endowment Policy in TV, your friends will be recommending you a term plan. Hearing about many types of insurance policies and types of life insurance, your mind gets confused and you take the wrong policy, so that you do not get the full benefit from it as much as you wanted.
To overcome this confusion, in this post I will tell you the types of life insurance, so that you will be able to choose the right insurance policy for you and take full advantage of it. But first consider it as a little detail of the Life Insurance policy.
What is Life Insurance?
The Life Insurance Policy is a contract between the policy holder and the insurance company. The policy holder pays a fixed premium to the insurance company for the fixed years, in return for which the insurance company claims that it will pay a fixed sum assured money to the policy holder’s nominee if the death of the policy holder is for the time period of this policy. If it gets inside.
In some policies, policy holders also get maturity benefits, if they are able to survive this period.
Types of Life Insurance
- Term plan
- Whole Life Insurance
- Endowment Policy
- Money Back Policy
- Unit Linked Insurance Plan
Let us now understand all these 5 insurance policies in details and take complete information about the types of Life Insurance.
1. Term Plan
Term insurance policy is very easy to understand. In this, you pay a premium to the insurance company for a fixed number of years. And in return, if your death is natural, then the insurance company gives the sum assured to your nominee. In this policy you do not get any maturity benefits. We’ve discussed the first type of life insurance i.e. term insurance.
Benefits of Term Life Insurance
- In this plan you have to pay less premium and you get more cover than other policies.
Disadvantages of Term Life Insurance
- On maturity, you get the same amount of total premium, but they do not get interest.
2. Whole Life Insurance Policy
You get a life cover in the Whole Life Insurance Policy. If you continue to pay premium regularly, then after your death, the Sumi Insurance Company gives assured to the nominee. You can also do this policy as a saving plan.
Benefits of Whole Life Insurance Policy
- And like policies it does not already have defined terms and conditions. He gets the sum assured, which is completely dependent on the policy holder.
- In addition to the sum assured, it also has a saving part. You can also reinvest this assured amount and let your money grow as you live. You can withdraw some money and take a loan on this policy as well.
3. Endowment Policy
The endowment policy is also a mix product of both savings and protection. Even in this policy, if the policy holder routinely pays his premium for a certain number of fixed years and his death is not natural, the policy holder’s nominee will get some assured amount. Also, if the policy holder survives the policy term, he gets a total amount with maturity benefits.
What are the benefits of this endowment policy (types of life insurance) let’s know –
Benefits of Endowment Policy
In this policy, you can also make a saving plan. You can also do your goal based saving and also take a loan on this policy.
4. Money Back Policy
Money back policy is also a type of policy of both savings and protection. But there is a big advantage in this, that some of the amount of your Assured Amount is available at regular intervals. So you do not have to wait for years to get the full amount. And the remaining amount you get on maturity along with the bonus.
If the policy holder dies in the middle of the policy interval, the Sum Assured Amount gives the insurance company to the policy holder’s nominee. Such benefits do not exist in any other policy.
Benefits of Money Back Policy
The biggest advantage of this policy is that you get some percentage of the amount at regular interval before maturity.
5. Unit Linked Insurance Plans
Unit Linked Insurance plan is also known as ULIP. This is a policy scheme like investment and protection combination. This one is slightly different from the rest insurance policy. The insurance company and fund manager are assigned to it. Which invests the policy holder’s money in equity or debt.
The policy holder has to suck, in which propensity he wants to invest his money, out of equity and debt . However, it does not guarantee returns. In this, the insurance company provides a lump sum amount policy to the policy holder upon maturity.
Benefits of Unit Linked Insurance Plans
Although there is no guarantee of returns, the insurance company gives you good returns in comparison to other policies.
Conclusion
Before taking any policy, you should prepare your goals as to why you want to take the policy. According to that you will be able to make the right choice. Everyone can have different regions. For example, in the money back policy, you get some amount as savings before maturity, then some can go for it if savings are their priority.
Some people may opt for a unit linked policy for want of higher returns. Use your discretion before taking any policy. Take policy after thinking, not by coming to insurance agents.
