Types of Life Insurance Policies in details....

Types of Life Insurance Policies

Whole Life Policy

Term assurance plans

Paid-up policy

Endowment Assurance Plans

Children plans

Annuity plans for senior citizens

Unit linked endowment plan

Group-insurance schemes

A policyholder is not entitled to any money during his or her own lifetime. (No survival benefits).

The policy money and the bonuses are payable only to the nominee upon the death of the policyholder.

Term assurance plans cover only the specific risk during the selected term period.
If the policyholder survives the term, the risk covers come to an end.
And, if he dies within the term of insurance, the nominee would receive the full insurance cover amount known as sum assured.
Premium, in this case, is the lowest.
Decreasing term assurance to cover home loan payment— mortgage redemption. Premium depends upon the age of the member at entry into the scheme; outstanding loan amount at entry date.

If the payment of premium ceases after 3 years, a paid-up policy for such a reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than ₹ 250.
Such a reduced paid-up policy is not entitled to participate in the bonus declared thereafter, but the bonuses already declared on the policy will remain attached, provided the policy is converted into a paid-up policy after the premiums are paid for 5 years.

Endowment assurance policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder together with all the bonuses accumulated during the term of the policy.
The endowment is, however, payable only at the end of the policy term or on the death of the policyholder if it takes place earlier.
Moderate premiums, high bonus, high liquidity and savings oriented.
In case the policyholder becomes totally and permanently disabled due to an accident before reaching the specified age policyholder will not be required to pay further premiums, and the policy will continue to be in force.
Money-back policies provide for periodic payments of partial survival benefits during the term of the policy, so long as the policyholder is alive. In the event of death at any time within the policy term, the death claim amount comprises full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money back components.

With profit plans specifically designed to take care of the educational needs of children. The plan can be taken by either of the parents on his or her own life.
Benefits under the plan are payable at pre-specified durations irrespective of whether the life assured survives to the end of the policy term or dies during the term of the policy.
The plan also provides for an immediate payment of basic sum assured on death of the life assured during the term of the policy.
Endowment assurance plan that provides for benefits on or from the selected maturity date for education, marriage, etc
Special plans for handicapped dependant satisfying conditions as specified in section 80DDA of Income Tax Act, 1961.

Form of investment that one makes, either in a single lump sum or through installments paid over a certain number of years, in return for which you receive back a specific sum every year, every half-year or every month, either for life or for a fixed number of years, which is why they are also called annuity plans.
These policies are most suited for senior citizens and those planning a secure future.

Unit linked endowment plan which offers investment-cum-insurance cover during the term of the policy.
Proposer also has a choice of investing the premiums in one of the four types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The unit fund is subject to various charges and the value of units may increase or decrease, depending on the net asset value (NAV).

Group-insurance schemes provide life insurance protection to groups of people. These schemes are ideal for employers, associations, societies, etc. as the schemes generally offer group benefits at really low costs.
Schemes covering outstanding housing loans, as well as outstanding vehicle, advances granted by an employer to its employees are also issued.
superannuation schemes provide pension to employees on their retirement from service.
Social security schemes provide insurance benefits to economically weaker sections of society in the unorganized sector.
Schemes for students pursuing professional courses