LIFE INSURANCE - VARIOUS TYPES OF POLICIES

Today Insurance Sector is getting bigger then yesterday. And tough compete has given more & more options to the customers. Before buying any Life Insurance Policy, You should know that what kinds of Policies are available in Insurance Industry. So that you can buy the best what you actually need. Here is a snapshot of the different types of Life Insurance Policies and their advantages.
Term Insurance:-
Term Insurance give covers to the Policy Holder for a specific period of time. This Insurance pays only when the Policy Holder dies within that specified time. Generally, Term Insurance is the cheapest Life Insurance among other Life Insurance. Thus, it is more Popular. You can renew most of Term Life Insurance Policies for one or more years, weather the condition of your health has changed. Each time you renew the policy; Premiums may rise higher than previous one. Team Insurance is mostly useful to cover any exceptional debt like home loan, mortgage loan etc. Yet not understand? Read this example. Ex. You have taken a Home Loan of Rs.20 lacks. You are the only person in your home, who is earning and paying those installments. No one can say what is going to happen tomorrow. Unfortunately, you died in any accident or any other event, who will pay the remaining installments? If you have Insurance then it will helps financially to your family and they will not lost their Home. Young Couple who is just married, has to run their home from a smaller amount of money, But to have a Life insurance is very necessary, for those Young people the Term Insurance is the best.

Whole Life Insurance:-
The Whole Life Insurance Policy covers you as long as you live but only when you had paid premiums. Normally the amounts of these premiums are same for lifetime. Some whole life insurance policies have facility to pay their premium for a short period such as 15or 20 years. The premiums of these policies are as higher as the period is shorter. Some of these types of policies have an option of Returning the premiums. Its mean that after some years of paying premiums, the Life Insurance Company will pay back the premium to the policy owner and the coverage will also continue.

Money Back Insurance:-
This Policy covers your life as well as other Life Insurance Policies but it also promise to give you some assured cash payment as regular time of period. Money Back Insurance is a one kind of Money Saving plan in which included an advantage of Life Cover and regular cash payback. This Policy is perfect for those, who are planning some require expenses , which are important like child’s further education, wedding, buying home or any assets. This type of Life Insurance Policy is very popular in Middle class Families. In this Policy, you should pay the Premium for a particular period of time. Between this period the policy owner dies, the full assured amount is payable to the nominee.

Endowment Assurance:-
The Endowment policies are the most popular policies in the Insurance Industry. This Policy is a level premium plan in which, there is a saving feature also. At the time of maturity, some of money is pays out to the sum assured. During the term of this policy, the policy holder dies then the Insurance Company pays total amount of policy. In the Insurance Market, there are so many policies offers you to select the term of the policy. But you have to select the term from five years to thirty years. There are also available the non-profitable policies in the market which premiums are low-priced.

Universal Life Insurance:-
Universal Life Insurance Policy is a flexible insurance policy, because it changes as per the market. Only in this policy, you have a choice that in which financial instruments your net premiums are to be invested. These financial instruments are like stock, bonds, equity etc. The money that you had invested as a premium has possible for major growth, such funds are subject to market risk, note that, the loss of principal amount is also included.

Unit Linked Policy:-
This type of Life Insurance Policies is known as ULIP plans. Unit Linked Product is as similar as the traditional Insurance Policies exception that insurance company invests your premium amount in the stock market. Insurance Company allows you to choose in which financial instruments want to invest in. Company gives you some option like mutual funds, equity, basket of securities etc. If you want to spared your investment then there is also an option to invest in mix of all instruments, it is called balances option. The major advantage market linked plans allows the allocation decision to the investors hands. That all in your (invest]or’s) controls to distribute your money among the various financial instruments. It is also in your hands when you want to do it or pull it out. Any of the products declared over except term products could be unit-linked.