There are various types of life insurances in the market, and one must know what are they. Here we'll briefly describe them:
Term Insurance: This provides pure life protection and the sum assured amount that the insurer promises to pay will be provided to the nominee as stated in the contract in case the insured one passes away. If the insured one survives in the insurance term period, you won't get anything or sometimes get your premium back.
Whole Life Insurance: In this insurance, the insured is offered a choice to pay a premium amount until a specified time that is known as the maturity period. When the insured one reaches maturity, it has to option to continue doing the same till death without having to pay any additional premium and encash the sum assured or bonuses.
Endowment Plan: This plan will pay you the sum assured along with the profits in the case of survival and death. However, this plan has a higher premium that is being invested in an asset market- Equity and Debt.
Child Insurance Plan: This covers the financial aspects to your child's future requirements and allows you to plan its future in stabilized better ways. This plan acts as an insurance cover along with being an investment tool that will secure the multiple stages of the child.
Pension Plan: This type of insurance assists in securing the person's post-retirement life financially. It acts as a saving/investment tool which caters to future retirement.
Investment Plans: This plan enables you to enrich your wealth, savings, and get insurance coverage.
Money Back Plan: These plans are similar to endowment plans with only a slight difference- the payout can be staggered with the policy term period. In this, part will be returned to the insured on a time to time basis as per the policy tenure. If the insured one passes away, the sum assured amount will be paid out and it also includes bonus. Due to these additional features, premiums for this plan are higher than the usual life insurance plans online.