Term Plan
Term Plan is pure insurance cover. It has only life coverage i.e. you get the sum assured only in case of death. There is no investment factor in term insurance. The life cover is for a specific period. There is no maturity benefit in Term Plans. Term insurance is must for a person who has dependents. They are the cheapest insurance plans. Now Online Term Plans are the cheapest as compared to the offline term plans.
Endowment Plan
Endowment Plans are insurance cum investment plans. Only a part of the total insurance premium is utilized for the life coverage and the balance amount of premium is invested in government securities. These plans generally do not provide a very low rate of return. Bonus is also declared by the company, which is added to the sum assured. On death, the nominee is paid the basic Sum Assured. On maturity, the insured is paid the Sum Assured along with the Bonus declared by the insurance company.
Money Back Plan
Money Back Plans as the name suggests returns a specific percentage of the basic Sum Assured after specific intervals. On Death, during the term the nominee is paid the basic Sum Assured with accrued benefit irrespective of the periodic payments made before. On maturity, of the plan, the policy holder is paid the accrued bonus during the policy period. This plan is suitable for people who wish to receive regular income.
Pension Plan
Pension Plans are insurance plans which provide a regular pension to the policy holder after a specific term (Retirement / Vesting age). In case of death during the term of the policy, the nominee is paid the Sum Assured. In case of death during the vesting period, the nominee is paid the balance corpus. There different types of pension plans available in the market.
Whole Life Plan
Whole Life Plans provide life insurance cover till the age of 99years. The premium payment term is limited. On Death, the Sum Assured along with the accrued bonus is paid to the nominee of the policy.
Unit Linked Insurance Plan (ULIP)
ULIP's are insurance cum investment plans. On these plans, the investment risk is to be borne by the policyholder. The policy holder has an option to choose the funds like Equity, Balanced, Debt, Liquid, etc. These plans also carry different types of charges throughout the policy term like Policy Administration charge, Fund Management charge, Premium Allocation charge, etc. In ULIP's policy holder has limited premium paying option for 5years. They also have the choice to choose the premium amount. ULIP's are available as different plans like endowment, pension, children's plan, etc.
*Riders
Riders are additional cover on your base insurance policy. You can add riders to your policy while buying the life insurance policy. In case the uncertain event takes place subject to rider, then the rider sum assured as well as life insurance sum assured is been paid to the nominee.Riders are available with all the life insurance plans except for pension plans. Some of the riders available are:
Term Plan is pure insurance cover. It has only life coverage i.e. you get the sum assured only in case of death. There is no investment factor in term insurance. The life cover is for a specific period. There is no maturity benefit in Term Plans. Term insurance is must for a person who has dependents. They are the cheapest insurance plans. Now Online Term Plans are the cheapest as compared to the offline term plans.
Endowment Plan
Endowment Plans are insurance cum investment plans. Only a part of the total insurance premium is utilized for the life coverage and the balance amount of premium is invested in government securities. These plans generally do not provide a very low rate of return. Bonus is also declared by the company, which is added to the sum assured. On death, the nominee is paid the basic Sum Assured. On maturity, the insured is paid the Sum Assured along with the Bonus declared by the insurance company.
Money Back Plan
Money Back Plans as the name suggests returns a specific percentage of the basic Sum Assured after specific intervals. On Death, during the term the nominee is paid the basic Sum Assured with accrued benefit irrespective of the periodic payments made before. On maturity, of the plan, the policy holder is paid the accrued bonus during the policy period. This plan is suitable for people who wish to receive regular income.
Pension Plan
Pension Plans are insurance plans which provide a regular pension to the policy holder after a specific term (Retirement / Vesting age). In case of death during the term of the policy, the nominee is paid the Sum Assured. In case of death during the vesting period, the nominee is paid the balance corpus. There different types of pension plans available in the market.
- Immediate Annuity Plan - Distributes pension from the very next year after purchasing the policy.
- Deferred Annuity Plan - The pension starts from the Retirement / Vesting age
Whole Life Plan
Whole Life Plans provide life insurance cover till the age of 99years. The premium payment term is limited. On Death, the Sum Assured along with the accrued bonus is paid to the nominee of the policy.
Unit Linked Insurance Plan (ULIP)
ULIP's are insurance cum investment plans. On these plans, the investment risk is to be borne by the policyholder. The policy holder has an option to choose the funds like Equity, Balanced, Debt, Liquid, etc. These plans also carry different types of charges throughout the policy term like Policy Administration charge, Fund Management charge, Premium Allocation charge, etc. In ULIP's policy holder has limited premium paying option for 5years. They also have the choice to choose the premium amount. ULIP's are available as different plans like endowment, pension, children's plan, etc.
*Riders
Riders are additional cover on your base insurance policy. You can add riders to your policy while buying the life insurance policy. In case the uncertain event takes place subject to rider, then the rider sum assured as well as life insurance sum assured is been paid to the nominee.Riders are available with all the life insurance plans except for pension plans. Some of the riders available are:
- Critical Illness Rider
- Accidental Death Rider
- Waiver of Premium Rider
- Permanent Disability Rider
