Types of Life Insurance policies

Types of Life Insurance policies

 Endowment Policy

You have committed your family the very best. And there is no cause why they should not get the very best in the hereafter as well. As a judicious family man, your priority is to guarantee the welfare of those who depend on you. Not only for today, but as well in the long term. Most significantly, you have to defend your loved ones against any contingency. How will they keep their way of animation, so lovingly built by you, in your absence?

Endowment Plan is a shelter program that insures your life and at the same time ensures that your money does not lie idle. It assigns a component of your premium in financial instruments and ensures a considerable increase in savings.

Key Features

• Twin Benefit of protection and preservation

• Sum Assured is paid for survival, at the end of the Premium Paying Term

• Wealth creation through bonus additions

• More value for your money by way of High Sum Assured Rebate

3. Pension Plan Policy

All of us are worried about our income when we retire. Pension plans, also called Retirement Plans are one of the safest and guaranteed ways of a trouble-free retirement life. Put small amounts today while you are earning and receive fixed annual payouts during your retirement years/

It is best to start planning for your retirement as early as possible for these small amounts contributed today will require a weighted sum of money over the years.

Pension plans are flexible and can be used effectively if planned out well. On reaching the retirement age, the policyholder can take out 33% of the maturity amount for some immediate financial demands. The residual amount of money is used to purchase an annuity which pays a regular monthly/annual income.

Characteristics and Benefits of Pension Plans

Minimum Guarantee plans:

Every pension plan needs to give up a minimum guarantee. As per IRDA guidelines, there must be "on-zero returns" on all premiums or guaranteed maturity benefits. Most insurance companies guarantee a minimum of one percent of total premium over the complete policy term.

Tax Benefits:

The final payout is provided in two ways. 33% of final payout can be pulled back in a lump sum of money and is not taxable. However the remainder of the sum is taxable.

Child Plans Policy

As a parent, you always wish to learn your child well educated, aim for his/her successful career in life thus fulfilling all his/ her aspirations. You do not want your child to compromise for making his life story in whatever weather. Apart from your children's education, you also dream of a lavish wedding for them. Child plans help your youngster with the lump sum amount in case of your uncertain death, this way your child's future plans do not become a beating.

Child Plans work

In a simple Child Plan, the life assured / policyholder is the parent. The tyke is just the beneficiary (just like a nominee) in the policy. Close to traditional designs also gives risk cover for the small fry. Risk cover in such plans starts after completion of seven years of age.

 You have to select a sum assured i.e. the lump sum amount, which you wish to have, in case of your untimely death. Shield plans are available as traditional programs as well as ULIPs. At the final stage of the parent during the term of the policy, the sum assured is paid to the beneficiary, thus that the family can stay with a similar standard of being every bit before even after the departure of the earning member of the family. 

Key Features

• The premium can be paid on a monthly, quarterly, biannual and annual basis.

• Insurance cover on the lifetime of a kid.

• Money at critical milestones in your child's career path - college training, higher education, marriage.

• Lifetime income for child in the event of disability.