If you want to be a good financial expert, then you should know about Life Insurance. but before I discuss let’s understand what actually Life Insurance is. life insurance is a contract between the insurance policyholder and an insurer. the main advantage of life insurance is tax-free money. money ( after death or physical damage/ accident)
Types of Life Insurance Policies
Now let’s understand what type of life insurance policies available in India, and benefits.
I can say Life insurance policy provides you a totally tax-free lump-sum of money (after your death). let’s understand Types of Life Insurance Policies available in India.
- Term Plan (pure risk cover)
- Unit linked insurance plan (Insurance + Investment opportunity)
- Endowment Plan (Insurance + Savings)
- Money-Back (Periodic returns with insurance cover)
- Whole Life Insurance (Life coverage for whole life)
- Child’s Plan (For fulfilling your child’s life goals like education, marriage, etc.)
- Retirement Plan (Plan your retirement and retire gracefully)
What is Term Life Insurance?
Term insurance or you can say Life/Risk cover insurance, the main reason for Term insurance is to secure your family needs in case of death or uncertainty. if you are the main income source for your family then you should take Term insurance.
The main purpose of taking life insurance is to provide life cover to the policyholder and all ligel financial security to his family members.
What is Unit linked insurance plan (ULIP)?
ULIP or unit-linked insurance plan is a life insurance combine of insurance along with investment, It is a secure investment-cum-insurance policy. They combine you total benefits of protection and savings in one single instrument.
What is the Endowment Plan?
An Endowment insurance Policy is a trusted Life Insurance Policy that helps all the Policyholders to save money regularly for over a specific period of time. It is a customary Insurance plan that pays out a singular amount measure of cash after the occasion of the passing of the Policyholder. The recipients/chosen people of the existence guaranteed get the advantage which is known as the demise advantage.
What is Money-Back (Periodic returns with insurance cover) Policy?
The money-back policy is a tension-free insurance policy it provides you a life coverage during the period of the policy and the maturity. Few benefits of money back policy.
Death benefits: if the insured person dies, then how many will receive the sum assured on even.
Maturity Benefits: You will get return money on the premium which you are paid during or after or at the time of maturity of the insurance plan.
What Is Whole Life Insurance?
Whole life insurance is a type of life policy that will provide you a death benefit to its beneficiaries, also provides you a cash value of your investment.
What is the Child’s Plan?
There are so many child insurance policies available. but before you start you must know which type of child policy is good for you. some good child policies are:
Child insurance and education plans.
Mutual funds through SIP
Recurring deposits (RD)
Some Child insurance and education plans:
Aviva young scholar advantage scheme
Met life Shiksha plus plan
ICICI Prudential Smart Kid Premier Plan
SBI Life Smart Scholar Plan
Aegon Life EduCare Advantage
HDFC SL Young Start Super Premium
Bajaj Allianz Young Assurance Plan.
if you want to know more you can visit your near bank like HDFC bank. axis bank, sbi bank, icici bank, etc.
What is the Retirement Plan?
A retirement pension plan is a process when you don’t have any income source but you can take an interest. You can put your money in a pension plan and save money for your financial needs in the future.
Final words: Before you choose any insurance plan ( For future investment) you should visit your near bank Office hand talk to your bank manager or stuff they will help you choose a good plan for you. or if you have any question feel free to ask me in the comment section.