Life insurance is a term we hear very often in the world around us. Every other person has one or another such policy signed in their names with insurance companies, who pay the amount agreed on after a stipulated time, to secure the lives of the insured or their loved ones. There is a wide variety of insurance policies, wherein the insured can decide the best based on their necessities. For instance,  buy term insurance if you want to secure your family, in case you meet with sudden death or physical disability to earn for your family. It is the simplest type of insurance policy available.

Types of life insurance policies

You have the liberty to decide from a wide range of policies. You can choose from the best savings plan, ULIPs, and many more that will fulfil your goals. Before moving into the benefits of a life insurance plan, let us take a look at the types of it.

• Term plans

Offers pure risk cover, that is affordable and easy.

• ULIPs

Unit Linked Insurance Plans ensure Insurance and investment benefits

• Endowment plans

Ensures Insurance cover and savings

• Money-Back plans

Insurance cover with periodic returns

• Whole Life Insurance plans

Coverage for a lifetime

• Child Plans

Beneficial for a child’s education, wedding, etc

• Retirement plans

Beneficial for financial independence post-retirement

Benefits of life insurance plans

We are expecting that it will help to know the benefits insurance companies have to offer once you decide to purchase an insurance policy, which will help you in choosing the right plan for you and your family.

• Loan collateral

A Life insurance Policy can be used as loan collateral. You can borrow a loan from a Non-profit Banking Financial Company (NBFC) based on your policy type and the surrender value.

• Online payment discount

Paying your premiums online has its perks. It lowers the administrative cost of the insurance company. You also save on the commission amount you otherwise had to pay to the agents for buying and renewing your insurance.

• Discounts on payment periodicity

An insurance company offers various payment periodicities such as annual, half-yearly, quarterly or monthly. If you choose the yearly payment mode, the company can invest in other companies leading to profits for the company. Premium rates already have the discounts included in it.

• Helps business

Although not all, some insurance companies have it all sorted for your business too. In the circumstances of your sudden demise, your business partner/s can purchase your share, that too hassle-free.

• Tax benefits

It is the most beneficial feature of owning an insurance policy and paying its premium; you are eligible for a tax rebate. Every insurance company, be it private or public sector offers this benefit.

Conclusion

Life Insurance Policy of any type has its merits and demerits. It depends on you and your requirements for the goal you have set to choose the right insurance policy. We hope we have made it easier for you to determine which type of insurance plan you are looking for and what are the benefits you are entitled to after purchasing one. However, choosing the best after thorough research is your right; after all, you will be investing your hard-earned money into it. 

Millicent Grim