Variety in life insurance policies in India

Variety in life insurance policies in IndiaLife insurance plans happen to be one of the common investments that most individuals make. Such is the popularity of the policy that the simple aim of only providing death benefit to the policy holder has now multiplied to several features that offer growth in investment, opportunity to invest in the market, goal oriented investments and much more. This has led to the introduction of several plans under the umbrella of life insurance. Here are some that you should know about -

Term insurance plans

Term insurance policies are the simplest form of life insurance policies. The plan is purely designed to offer financial security to your family in case of an eventuality. Under this plan you can only avail death benefits i.e. if the life insured dies, then the entire sum assured is handed to the nominee of the policy.

Term Insurance policy generally offers no added bonuses or maturity benefits. This plan can be availed for a period of 10 years to 30 years. In case the insured outlives the insurance period then there are no further benefits from the plan. The premium rate for this plan is low as compared to the other insurance plans.

Endowment plans

This is considered to be one of the best savings plans by investors as it offers excellent growth on your savings. Under this plan you are liable to avail death benefit as well as maturity benefit. This ensures your loved ones are financially secure even when you are not around. You also get maturity benefits in case you outlive the tenure. The maturity payout of the plan also offers bonuses on the investment as accrued over the investment period. This plan can be availed for a period of 10, 15 and 20 years or up to a certain age limit.

ULIP plans

ULIPs or Unit Linked Plans are life insurance plans that avail you the benefit of investing in securities. In this plan the premium you pay is invested in equities or debt funds and the remaining amount is used for life coverage. So this plan offers death benefit in case of the life insured's demise and it also gives you a good maturity benefit with the growth in the equities market. However, there may be some stock related risks in case you plan to invest in this policy.

Pension plans

Also known as retirement plans, this life insurance plan is the best means of building a corpus for your retirement years. The investor has to pay a particular amount of premium regularly towards the plans for a definite period of time. At maturity the plan offers a particular sum to the insured either on monthly basis or annual basis.