After the birth of his first child, Rajiv, a 28-year-old Accounts Professional, decided to purchase a Life Insurance Policy to secure his family’s future. He got online to check options but got confused with the various terms such as Endowment Plan, ULIP, Whole Life Plan, etc. and he simply logged off. As a result, his decision to purchase a policy got pushed back by a few weeks. This is exactly what happens with a lot of new customers who don’t understand the jargons and terms of Insurance policies.
To begin with let’s accept that Insurance content can be too long, boring and complicated for a lot of people and there is a serious need to make things short, crisp and simpler. This is exactly what OneInsure focuses on. So for those seeking information, here is a walkthrough on the different types of Life Insurance policies available in the market.
- This is pure risk cover policy which offers only Death benefit and there is no Maturity Benefit
- The premiums are cheaper compared to other Life Insurance Plans
- The objective of this plan is just to offer financial protection to the beneficiaries in the event of the death of the insured.
- It’s a combination of risk cover and financial savings.
- It provides both Death Benefit as well as Maturity Benefit
Whole Life Policy
- The policy covers the insured
upto100 years of age.
- It offers both Maturity and Death Benefit
Money Back Policy
- The policy offers the Sum Assured as periodic payments at regular intervals, during the term of the policy.
- The balance of the sum assured is paid on Maturity.
- In case of the death, the Death Benefit is paid to the beneficiary
Unit Linked Plans
- This is a combination of risk cover and investment.
- A part of the premium paid is utilized to offer Life cover and remaining is invested into various schemes such as Equity and Debt.
- The plan offers both death and maturity benefits.
You should choose a life cover based on your lifestyle, stage of life,