Types of life Insurance Policies
There are eight major types of life insurance policies. Compare all types of insurance plans on life.indiainsured.com. An endowment plan combines benefits of insurance and investment. In an endowment plan, if a policyholder dies during policy term then beneficiaries will get the benefits in the form of sum assured or bonuses. A Unit Linked Insurance Plan(ULIP) is a type of an insurance policy which gives benefits of both insurance and investment to the investor. In ULIP, investment is associated with the capital market.
Group insurance covers insurance for defined groups such as members of society or a professional association. Pradhan Mantri Jeevan Jyoti Beema Yojana is type of group insurance plan that is being offered by many insurance providers like HDFC, SBI Life, ICICI Prudential, etc. Term insurance gives benefits to family members of an insured person after his death. Whole life insurance plan, pension plan and money back insurance plan fall under investment policies as policy terms for these plans is longer. Annuity plans can be utilized for deferred or immediate income.
Key Benefits of Life Insurance Policies
Different key benefits of life insurance policies are death benefit, maturity benefit, tax benefit etc. Annuity benefit, accidental death benefit, benefits in critical illness are some additional advantages that may be provided in some insurance policies. Provisions like policy switching, online buying, policy renewal, etc. are also available for a life insurance policy.