You may be aware of a life insurance term plan, as most people are, however, there are other investment options available to you that can help you make a sound financial plan.
Let’s understand how they works and their benefits in detail:
1. Term Insurance Plan
Life insurance term plan is one of the most sought-after types of life insurance policies in India. This is one of the types of life insurance policy in India that you can buy for a specific period of 10, 20, 30 or more years, hence the name.
While some other types of life insurance policy offer maturity benefits, term life insurance does not. It is one reason why life insurance term plan is comparatively cheaper than other types of life insurance schemes.
Term life insurance is pure life cover, unlike other types of life insurance policies which have a saving component. You can also opt for a significant life cover at a lower premium as compared to other types of life insurance policy which are costlier but have built-in saving components.
2. Term Insurance with Return of Premium
A life insurance term plan is amongst the types of life insurance policies that provides a death benefit but no maturity benefit. It is one of the types of term insurance plans that give back the premiums you pay on surviving the policy period. Besides, you can easily calculate premium for term life insurance using an online term insurance calculator.
When you calculate premium for life insurance term plan, you get a clear understanding about your unique requirements, explore rider options, and also choose your policy term. Doing so helps you ensure that you are investing in the most suitable types of life insurance policies for yourself and your family.
3. Unit Linked Insurance Plan (ULIP)
You may face a dilemma in life about choosing between any of the two options – investment or insurance.
A ULIP is one of the types of life insurance policies in India that fulfill both these aspects. Amongst different types of life insurance, it is the one that offers life cover along with investment opportunities. Being one of the types of life insurance, it has a lock-in period of five years, which makes it a long-term investment instrument that comes with risk protection. ULIPs also allow you to balance your funds as per market dynamics.
4. Endowment Policy
Endowment policy is a type of life insurance term plans that provides you with 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.
If you are confused between term plan vs endowment plan, it is best to consider your investment and financial goals to make the right decision.
While life insurance term plans provide life security for your future, endowment plans can help fulfill long-term goals in life. You will also get the maturity amount if you survive the policy tenure.
Endowment policies, being one of the most appropriate types of life insurance plans, also help you create a financial cushion for your family to meet various financial objectives in life.
5. Moneyback Policy
As the name suggests, moneyback policies are one of the popular types of life insurance policies in India that give money back regularly.
It pays a percentage of the assured sum throughout the policy tenure, unlike other types of life insurance plans that offer no returns till maturity.
6. Whole Life Insurance
As a life insurance policyholder, you get the benefits depending on the types of life insurance policies you have chosen. What distinguishes a whole life insurance plan from other life insurance plans is that it provides insurance coverage to the insured for the entire life, up to 100 years of age.
8. Child Insurance Plans
A child plan is an investment+insurance plan that helps you meet your child’s financial needs. A child insurance plan will help you create wealth for your child’s future needs like education.
You can start investing in these plans from the birth of your child. You get the flexibility of investing your hard earned money into several funds on the basis of your financial condition and goals in mind.
9. Retirement Plans
Retirement Plans are amongst the types of life insurance policies that provides financial security and help you with wealth creation after your retirement. With Retirement Plan, you will get a sum of money as pension in the vesting period.
