Term Insurance Policy• A term insurance policy is a pure possibility protect plan that protects the person insured for a specific time interval. In such type of a insurance coverage , a fixed sum of money called the Sum Assured pays to the beneficiaries (family) if the policy holder expires within the plan insurance. For instance, if a person buys a Rs 2 lakh insurance plan for 15 years, his household is entitled to the sum of Rs 2 Lakh if he dies within that 15-year interval.
• If the client survives the 15-year interval, the rates paid are not returned back. The advantage, apart from the financial security for an individual’s household is that the rates paid are exempt from tax.
• These plans are designed to provide 100 per cent possibility protect and hence they do not have any additional charges other than the basic ones. This makes rates paid under such lifestyle plans the lowest in the plan coverage category.
Whole Life Policy• A whole life policy plan covers a insurance holder against loss of life, throughout his life term. The advantage that an personal gets when he / she opts for a whole lifestyle plan is that the validity of this insurance coverage coverage is not defined and hence the person enjoys the lifestyle cover throughout his or her lifestyle.
• Under this insurance coverage, the plan holder pays regular rates until his loss of life, upon which the corpus is paid out to the family. The plan does not expire till the time any unfortunate event occurs with the person.
• Increasingly, whole life policies are being combined with other insurance products to address a variety of needs such as retirement planning, etc.
Premiums paid out under the whole life policies are tax exempt.
Endownment PolicyMixing possibility cover with advantages, endowment policies are among the popular lifestyle plans.
• Policy holders benefit in two ways from a genuine endowment plan. In case of death during the period, the successor gets the sum assured. If the individual pulls through the plan period, he gets back the rates paid with other investment comes back and advantages like additional bonuses.
• In addition to the basic plan, insurance firms offer various advantages such as double endowment and marriage/ education endowment plans.
• In recent years, the concept of providing the clients with better comes back has been gaining importance. Hence, insurance companies have been coming out with new and better ULIP versions of endowment policies. Under such lifestyle plans the clients are also offered with an option of investing their rates into the marketplaces, depending on their possibility appetite, using various fund options offered by the insurance provider, these lifestyle plans help the customer profit from rising marketplaces.
• The rates paid and the comes back gathered through genuine endowment policies and their ULIP versions are tax exempt.
Money Back Policy• This insurance coverage is preferred by many people because it gives regular payments during the term of policy. In other words, a portion of the sum confident pays out at regular durations. If the client pulls through the phrase, he gets the balance sum confident.
• In case of death during the policy term, the successor gets the full sum confident.
• New ULIP versions of refund policies are also being offered by various lifestyle insurance firms.
• The premiums paid and the returns gathered though a refund plan or its ULIP versions are tax exempt.
ULIPS• ULIPs are market-linked insurance coverage products that offer a variety of life cover and wealth creation options.
• A part of the amount that people invest in a ULIP goes toward offering lifestyle protect, while the rest is spent in the a guarantee & financial debt equipment for increasing comes back.
• They offer the versatility of choosing from a variety of finance choices with regards to the customers risk hunger. One can opt from extreme resources (invested mostly in the a guarantee industry with the purpose of high investment appreciation) to traditional resources (invested in financial debt markets, cash, bank build up and other equipment, with the aim of keeping investment while offering stable returns).
• ULIPs can be helpfull for achieving various long run financial targets such as planning for retirement, child's education, marriage etc.
Annuities and Pension In these types of life insurance policies, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against financial risks as well as provide money in the form of pension at regular intervals.
