Which life insurance buy
Types of life insurance policies:
Through term insurance you can choose the security for a set time limit. In the event of death or permanent disability (if benefit has been proposed), the benefit will be paid to your dependents. In Term Insurance, after the insured person has crossed the insurance period, no payment is usually payable.
Whole life insurance
You are guaranteed lifetime protection with full life insurance. Death benefit is paid in entire life insurance so you can be assured that even after your death, your family will be protected against potential financial losses. This is also an ideal way for your heirs to create heritage.
Endowment policy is a savings related insurance policy with a fixed maturity date. If during this period unfortunately your death or disability occurs, the maturity amount will be paid to your beneficiaries. If you remain alive during this period, the amount due on the policy maturity will be paid.
Money back or cash back plans:
Under this scheme, a certain percentage of the maturity amount is returned to the assured as a continuous survival benefit. The balance amount is paid as the maturity value after the expiration of the period. Life risk during the policy term can be covered for the full maturity amount despite payment of survival benefits.
These types of policies are taken by the parents / children for the benefit of the child. Through such a policy, the guardian can then plan to receive funds when the child reaches various stages in life. Some insurers also provide exemption from premium payments upon the death of the parent / proposer during the policy period.
Annuity (Pension) Plans:
When retired, the employee ceases to receive his salary, while his regular income earns his needs. Payment of retirement benefits like provident fund and gratuity is lumps out, which are often expired or do not invest wisely so that there is no regular income available to the employee in the days after retirement. Therefore, pension is an ideal method for retirement provision because this benefit is in the form of regular income. During our earning period, when we receive regular income, it is preferable to have a plan for the later days of old age. Financial independence during old age is very important for everyone.
There are two types of annuity plans:
Annuity payments start immediately from the insurance company in an immediate annuity. The purchase price (premium) has to be lump in only one installment for immediate annuity.
Under the deferred annuity policy, the person pays regular contributions to the insurer by the date of vesting (vesting) age / rights vesting (vesting). He also has the option to pay as a single premium. This fund is accumulated with interest and funds are provided on the date of issue of authority. The insurance company manages the investments of the funds and the policyholder is given the option to redeem 1/3 of this fund fund on the authorization age / authorization date. The remaining 2/3 of the fund is used for an annuity (pension) purchase for a person.
Unit Linked Insurance Policy
Unit Linked Insurance Policies (ULIPs) offer a combination of investment and security and offer your premium investment options and flexible flexibility. In unit-linked schemes, being an investor, the investment risk portfolio is borne by you. Generally, this policy provides you with the option of funds in which you can invest. You also get the flexibility to switch between different funds during the policy term. The value of the ULIP is linked to the prevailing value of the units, in which units you have invested in the fund, and it depends on the execution of the fund. In the event of death or permanent disability, the policy provides the maturity amount (the extent to which you are covered) so that you can be assured that your family will be safe in case of sudden financial loss. All ULIPs are associated with risks and returns in diverse quantities. Miscellaneous charges apply on unit-linked policies and the balance out of the premium is paid in the funds / funds you choose. To understand the amount of total charges you can afford, it is important to inquire with your insurer or agent or broker. Before you decide to buy a Ulips policy, it is important to assess your risk carrying capacity and investment target limits. To understand the features of the policy, including lock-in period, surrender value, surrender charges, etc., it is very important to carefully study the terms and conditions of the policy.
All the above mentioned schemes can be proposed under ULIP schemes.