Life insurance is a policy that provides financial protection to an insured person's dependents in the event of his untimely death. Policyholder pays a monthly, half-yearly, or annual premium.
What are the life insurance benefits ?
There are numerous advantages to having life insurance, including:
- Protection for your loved ones even after you have passed away
- A life insurance coverage might assist you in putting money aside for retirement.
- Deduction from taxes
- Financial stability can be enjoyed.
- Cover uncertain times
What are the types of life insurance policies ?
There are the following types of life insurance policies
- Term insurance
- Retirement Plans
- Investment Plan
- Child Plan
- Unit-linked insurance plans (ULIPs)
- Whole Life Insurance
- Group Life Insurance
- Money Back Policy
- Term insurance with return of premium
Term insurance: Term insurance is a type of insurance with a set term/period for which it offers coverage. The beneficiary receives financial protection in exchange for the premium paid. It provides life insurance at a low cost.
Retirement plans: Retirement insurance protects a person’s financial situation after they retire. It allows retired people to be financially independent. They’ll be able to live on their terms and won’t be a burden to anyone.
Investment plan : An investment plan allows us to maximize our savings by investing in market products. Our savings grow in tandem with the market as we invest in money market goods.
Child Plan: A child insurance plan can help secure a child’s future even after their parents pass away. In this case, insurance companies cover the costs of a child’s schooling, marriage, and other expenses.
ULIPs (Unit linked insurance plans): ULIPs are insurance and investment products in one. The premium is split into two halves, one for financial protection and the other to boost our savings.
Whole life insurance: As the name implies, whole life insurance covers the policyholder’s entire life as long as the payment is paid on time.
Group Life Insurance: Group life insurance is a type of policy that covers a group of people under one policy. Employees of a corporation, a housing association, and so on can be included in these categories.
Money-back policy: This policy allows policyholders to receive periodic payments in the form of recurring returns or a lump sum.
Term insurance with return of premium: Term insurance with return of premium is similar to term insurance, but the main distinction is that in term insurance with return of premium, the insured can receive a refund of the premium paid (minus taxes) from the insurance provider.