What Are The Principal Types Of Life Insurance?
Investing in a life insurance policy has become imperative for securing yourself and your loved ones financially. A life insurance policy ensures that you do not go through any financial constraints and you and your loved ones can seamlessly achieve all your goals and dreams.
Today, there are various types of life insurance policies available to people. Knowing the ideal life insurance policy and choosing the one that suits you and your loved ones the best is crucial. Choosing the ideal life insurance policy for you and your family ensures that you do not face any hassle and do not have to worry about any financial drawbacks in the future.
Are you facing a hassle in choosing the best types of life insurance policy for you and your loved ones? Below are a few principal types of life insurance policies in India that will help you choose the policy that suits you and your family the best.
Principal Types of Life Insurance Policies in India
Term Insurance Policy
The first type of life insurance policy is the Term Insurance Policy. In the policy, the policyholder pays a certain amount of premium to the insurance company periodically, or in lump sum. In return, if you meet with an untimely and unfortunate demise, your family will be provided with a lump sum amount of sum assured, also known as death benefits.
As the name suggests, the policyholder can invest in the policy for a specific time period. It can be for 10 years, 20 years, 30 years, etc. One of the key benefits of a term insurance policy is that the premiums paid by the policyholder are cheaper and much more affordable than other types of life insurance policies.
Term Insurance Policy with Return of Premiums
Another type of life insurance policy is the Term Insurance Policy with a Return of Premiums. Under this policy, if you survive the maturity period of the policy, you will get back the premiums you have paid. In case of the policyholder's untimely and unfortunate death within the policy term, his family is entitled to a lump sum amount of sum assured as death benefits.
Unit Linked Insurance Plan
One of the key life insurance policies is the Unit Linked Insurance Plan (ULIP). This plan not only lets you insure you hard-earned money but also gives you the provision to invest your money in the market in stocks, shares, bonds, etc. The return on your investments entirely depends on how the fund perform in the market. In case of the insurer's unforeseen and unfortunate death, the family gets a sum assured to ensure that they do not face any financial hassle and can seamlessly achieve their dreams.
Whole Life Insurance Policy
A Whole Life Insurance Policy is a type of life insurance policy that provides the policyholder with a cover for the entire life (normally till age 99 or 100). One of the key advantages of this policy is that if you survive the policy tenure, you are eligible to receive maturity benefits. Also, the savings component of whole life insurance builds accumulated cash value that the insured individual can borrow against or withdraw.
Our Intake
Whenever you plan to choose the type of life insurance policy that suits you and your family the best, keep in mind your financial requirements, the benefits the policy offers, and the premiums can you afford to pay.
While choosing the best type of life insurance policy for yourself and your loved ones, it is also crucial to go for a leading and trusted life insurance company. The company should offer a range of life insurance policies to choose from. Besides ideal life insurance policies, such companies also offer lump-sum death benefits, free health checkups, impressive claim settlement ratio and more. For more information on which type of life insurance policy suits you the best, you can visit their official website or get in touch with them.
Vinod Gill is a writer who specializes in writing content on Insurance and Finance subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Journalreporter.
