subject: Different Types Of Life Insurance In India [print this page] Life insurance is a popular investment plan in India. The policy functions by covering your life in case of several eventualities. In case of the unfortunate demise of the policy holder the nominee of the policy gets a lump sum amount. The policy is available for a particular tenure and to keep it active you need to pay a particular premium amount towards it. Being a popular form of investment, life insurance in India offers variety of products to offer. Some of them are as follows
Term Insurance
This plan is also called as pure life insurance plan. The concept is simple. The plan aims to offer your family financial assistance in case of an eventuality. It only offers death benefit and no other benefits like survival or maturity benefit. The premium amount for this policy is comparatively less as compared to the other life insurance policies in India. This plan is perfect for those who wish to secure their family financially in case of their absence (naturally or by accident). These are the simplest plans to understand.
The policy is available for a fixed term or duration. In this duration the policy holder and his dependents are insured against the circumstances that could arise due to the sudden demise of the policy holder. It is advisable that one should consider taking a policy at a young age. The earlier you get the policy the longer is the coverage and lesser the premium.
Investment Plans
This form of life insurance in India is also known as ULIP or Unit Linked Life Insurance Plans. This policy offers the policy holder with dual benefits. You get the advantage of insurance and a flexible investment plan. The units are the individual elements that form a part of the investment factor of the policy whose underlying asset forms the basis of such valuation as mentioned in the policy document. This plan is excellent for tax savings. The tax benefits provided by the plan are a major attraction for consumers.
Pension plans
The constant rise of prices makes it difficult for even a salaried person to meet ends, imagine the difficulty you could face in your retired years. Until now the only plan of retirement was to depend on your children. But with the pension plans coming things seem to change slowly. Also known as retirement plans, this life insurance plan in India ensures that you continue to live with dignity even in the later years of life.
A pension plan ensures you get a regular income in the later years of life. You can take the policy for a particular number of years, based on when approximately you would retire. A particular premium amount needs to be paid out during this time. At maturity the policy will regularly pay you your pension. In case of the sudden demise of the policy holder the policy offers the amount to the nominee of the insurance.
These are a few popular life insurance policies in India. They have been in the market for a long time and have a lot of trust factor attached with them. As there are several providers in the market, you will surely get a product that matches your requirements.
by: Jenni Kundu
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