Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc.
Different types of insurance policies are as follows
Term Insurance: This type of policy gives the protection for a set period of time with Term Insurance. In the event of death or Total and Permanent Disability during the period of policy then the dependants of policyholder get a benefit. In Term Insurance, no benefit is normally payable if the life assured survives the term.
Whole Life Insurance: With whole life insurance, Policyholder is guaranteed lifelong protection. Whole life insurance pays out a death benefit so you can be assured that your family is protected against financial loss that can happen after the death of policyholder. It is also an ideal way of creating an estate for heirs as an inheritance.
Money back plans or cash back plans: Under this plan, certain percent of the sum assured is returned to the insured person periodically as survival benefit. On the expiry of the term, the balance amount is paid as maturity value. The life risk may be covered for the full sum assured during the term of the policy irrespective of the survival benefits paid.
Endowment Policy: An Endowment Policy is a savings linked insurance policy with a specific maturity date. If any unfortunate event occurs to you during the period, the Sum Assured is paid to your beneficiaries. On your surviving the term, the maturity proceeds on the policy become payable.
Annuity (Pension) Plans: When an employee retires Retirement benefits like Provident Fund and gratuity are paid in lump sum which are often spent too quickly or not invested prudently with the result that the employee finds himself without regular income in his post – retirement days. Pension is therefore an ideal method of retirement provision because the benefit is in the form of regular income. It is wise to provide for old age, when we have regular income during our earning period to take care of rainy days.
Children Policies: These types of policies are taken on the life of the parent/children for the benefit of the child. By such policy the parent can plan to get funds when the child attains various stages in life.