- Money-back plans
As the name conveys the idea directly, this plan provides you the guarantee to get the stipulated percentage of the sum assured, even after the survival of the policy term period. This sum assured is returned back to the insured at pre-decided regular intervals. This is the best insurance policy if anyone wants to make a wise investment decision and wants to get avail the element of liquidity with interest.
- Endowment plans
Endowment plans are a type of combination of savings and life insurance. After buying this plan you will not only receive life cover but also saving benefits. The insured will get a maturity benefit on surviving the term period of the policy. He will also get a periodic bonus (if the insurance company has declared any). Furthermore, as compared to the other insurance plans, the risk factor about the return on investment is low in the endowment plans. However, a low-risk factor also attracts a low return.
- Life Insurance Term Plans
Term insurance is the most basic and the most affordable type of life insurance plan. It offers a high amount of sum assured at affordable and flexible premiums. The insurance company pays your nominee the sum assured in case of your untimely death. These plans generally tend to ask for a low amount of premiums, however, if the insured person survives the term period of the policy, then the company is not liable to pay anything to anybody. The best term insurance plan provides all-around coverage at a competitive premium.
- Retirement plans
As the name suggests, these plans make your retirement life better. Retirement plans are also known as deferred pension product plans, and they provide you a pre-defined amount of pension depending upon the coverage taken by you, after the completion of the term period of your insurance policy. In case of your sudden demise, your nominated person will receive immediate payment. Otherwise, you will receive the vesting benefit continuously, on surviving the term period of the insurance policy. Generally, retirement plans provide monetary benefits in the form of monthly or annual installments (or as per the time frame decided at the time of buying the policy) or as a one-time pay-out released as soon as the insured person achieves the age of 60.
- Unit linked insurance plans
Also known as ULIPs in short, is the unique insurance plan which offers you a handsome combination and dual benefit of life coverage with a great deal of investment. In this plan, a portion of your money is invested in different fund channels (such as debt, bonds, mutual funds, equity market, etc.) while the rest of the money is used to provide you the life cover. This plan also pays you an amount to the nominee on your death and a maturity amount to the policyholder if he survives the term period. However, the amount of maturity is more dependent on the decisions of the investments you have taken rather than the scale of profits of the life insurer company.
- Children’s plans
The basic idea behind a children's plan is to provide financial assistance to your children. The reason behind the idea of assistance could be anything such as higher studies, business, or marriage. With a children’s plan, you also get the flexibility to invest money into various funds as per your financial condition and long-term goals. Basically, this plan acts as an instrument to generate funds for the policyholder’s child. This plan provides benefits as installments on an annual basis or issues a one-time payment once the child achieves 18 years of age. The insurer pays the immediate benefit to the nominee of the policy in case of the demise of the policyholder.
- Whole life insurance plans
In this type of plan, extensive life coverage is given to the insurer till he is alive, some companies even extend this term period up to 100 years. The insurance company makes an estimate of the sum assured at the time of selling the policy. This amount is payable to the nominee after the death of the policyholder. As the name suggests, this plan provides life coverage during the whole life of the insured person.