Types of Life Insurance Policies in India | Shriram Wealth Architecture

Life Insurance Policies in India

You may not be fully aware of the types of life insurance policy in India and how they affect your financial health. Let’s check the types of life insurance and their benefits in detail below.

 

Types of life insurance below:

Term Insurance Plan

The term insurance plan is one of the most sought-after types of life insurance policies in India. This is one of the types of life insurance policy in India that you can buy for a specific period of 10, 20, 30 or more years, hence the name.

Term insurance is pure life cover, unlike other types of life insurance policies which have a saving component. You can also opt for a significant life cover at a lower premium as compared to other types of life insurance policy which are costlier but have built-in saving components.

Whole life insurance

As a life insurance policyholder, you get the benefits depending on the types of life insurance policies you have chosen. What distinguishes a whole life insurance plan from other life insurance types is that it provides insurance coverage to the insured for the entire life, up to 100 years of age.

Typically, the death benefit, under a whole life insurance, is payable to the beneficiary in the case of the untimely demise of the policyholder. On the other hand, you are eligible to receive a maturity benefit under a whole life insurance policy if you cross 100 years of age.

Child Insurance Plans

When it comes to life insurance types, a child plan is an investment + insurance plan that helps you meet your child’s financial needs. A child insurance plan will help you create wealth for your child’s future needs like education.

You can start investing in these plans from the birth of your child. You get the flexibility of investing your hard-earned money into several funds on the basis of your financial condition and goals in mind.

Retirement Plans

Retirement Plans are amongst the types of life insurance policies that provides financial security and help you with wealth creation after your retirement. With Retirement Plan, you will get a sum of money as pension in the vesting period.

In case of your untimely demise during the policy term, your nominee will get the death benefits. Retirement Plans comes with death benefit as well as vesting benefit providing protection to you and your family members.

Group life insurance

A Group life insurance is one of the types of life insurance policies that covers a group of people under one master policy. Such life insurance types are generally provided as part of an employment benefit.

A unique feature of these types of life insurance products is that you will get the insurance cover if you remain a part of the group. It is different from the individual types of life insurance plans in which the coverage continues throughout the chosen policy tenure.

Conclusion

You might have assumed you need to choose a life insurance policy in India from the array of available variants. However, the decision of the insurance policy must depend upon how much life cover you need.

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Blog: Life Insurance in India