Exploring the Different Types of Life Insurance Policies

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Did you know that the life insurance sector in India registered impressive growth of 26% in total new premiums in 2016-17, reaching ₹1,75,021 crore, in comparison to the ₹1,38,760 crore recorded in 2015-16? This fact was reported by The Indian Express. The good news is that we Indians are waking up to the need for life insurance, while also learning how to use tools like a premium calculator to understand how much we need or can afford to pay for life insurance.

You can go online and explore the several different types of policies that exist today in India to arrive at one that best serves your interest and that of your family.

Types of Life Insurance Policies

  • Annuity Plans – One of the most important life policies to explore is an annuity plan. These plans are designed to provide you risk cover against a time in your life when you will retire and your regular flow of income will stop. They make for great retirement planning instruments.
  • Term Insurance Plans – As the name suggests, such insurance plans are meant for a set period of time. A term insurance plan will help safeguard the interest of the nominees of a policy in the event of the unexpected death of the policy holder within the tenure of the plan.
  • Money-back Policy – Opt for a money-back policy if you’re looking to get a fixed amount at periodic intervals, to take care of a time when you no longer have a regular income. Even the dependents of the policy holder are guaranteed the sum assured in the event of the death of the policy holder, making it a safe investment to secure the future of your dependents.
  • Child Plan – A good child plan can help you mobilize funds for your child’s future needs, such as higher education and marriage. So, if you haven’t already, now is the time to look online for a premium calculator that can help you estimate how much money you might need in future for your children.
  • Endowment Policy – This is an ideal financial planning instrument for someone looking to save over a longer period of time. The benefits of such policies are received in lump sum either on the death of the policy holder or upon maturity of the policy term.
  • Whole Life Insurance – One of the salient features of a whole life insurance policy is that the holder of such a policy will enjoy policy benefits for the rest of his/her life. A whole life plan also comes with death benefits, thereby giving your family the much needed financial security even after your death. Again, the use of a life insurance calculator can help you estimate the type of plan available in India that will best suit your needs.

An increasing number of people in India have started to see the utility of life insurance policies beyond just their tax-saving benefits. If you are planning to take up life cover, you must aim to start early to maximize your returns from any of the options mentioned above. Utilizing online tools such as a calculator found on the portals of insurers, be it LIC or private players, can be a great help to know the exact premium and other important policy details.

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