What are the Different Types of Life Insurance Policies in India

While choosing the different types of life insurance policies, you always need clarification about the best one. However, that’s valid to get confused as right now market is full of different types of life insurance policies in India. Insurance policies undoubtedly play an essential role after the person’s demise, so we must invest in life insurance policies that support the family and fulfill their needs later.

There are plenty of different types of insurance policies in India, and we can choose between them according to our needs and requirement, and we are here to provide you with information and educate you about the classification of life insurance policies and the availability of different types of life insurance policies in India.

Details on Different Types of Life Insurance Policies in India

You will find various types of life insurance policies in the market. You always make a classification of life insurance policies through their benefits. However, these life insurance policies below will surely help you get an ulterior motive.

Here is a further detailed description of the different types of life insurance policies in India. The classification of life insurance policies is always challenging. However, we will help to explain all the benefits of these different types of life insurance policies in India.

1. Term Life Insurance or Term Plan

Term life insurance is the most used and favorite type of life insurance policy in India. It is one of the popular life insurance policies which ensures a better and more peaceful life for the family after the insured’s demise. It is quite an affordable plan, and anyone can take it as there is no such requirement. Nowadays, as there is no surety of life, term life insurance or term plan can relieve the stress of the insured to some extent. You can visit any bank and classify life insurance policies per your needs and demand.

2. Whole Life Insurance Plan

A whole-life insurance plan provides whole-life coverage to the insured. These types of life insurance policies in india offer complete protection for the person’s life during any mishap. It is believed that if anything happens, such as if the insured gets injured, the insurance company takes all the expenses. Death doesn’t include in the whole life insurance plan. Other all things are taken inside it. However, no money will be given to the family after the insured’s death.

3. Unit-linked Insurance Plan

Unit-linked insurance plan features both investment and life insurance for their customers. It is a unique and famous type of life insurance policy. You can invest your money here and later secure that money as insurance for yourself and your family. It is one of the most liked insurance policies with dual benefits. It even provides long-term benefits of life insurance to the consumer, which makes it one of the most liked insurance policies in India.

4. Endowment Policy

An endowment policy is a type of life insurance policy in India that helps to provide large payments of the insured amounts at maturity. It maintains a fund of the savings of the insured and offers it at the date of maturity. People even opt for this policy as it provides dual benefits. It helps give a lumpsum amount at the end, and you can even keep it as a savings account that you can use in the future for more purposes.

5. Money Back Policy

The money-back policy is the best type of life insurance policy in India. A beneficiary insurance policy provides some amount of money to the insured at particular intervals. Once the policy gets matured, you will get all the remaining money. It is one of the widely and best types of life insurance policies in India for business purposes. In any case, after the insured’s demise, all the left amount will be provided to the insured’s family for their further use.

6. Retirement Plan

This insurance plan is quite beneficial for those who will get retired from work in the coming years. It gives an assurance that all your expenses will be bared easily with the help of a retirement plan. Of course, you have to deposit your regular income timely into the account so that it can be used as support after your retirement.

7. Child Insurance Plan

Child insurance plans are the types of life insurance policies in India that provide support to your child’s future in your absence. People often take child insurance plans so that all the significant expenses, like marriage, higher education, etc., can be carried forward easily. Therefore, it is the best plan if you’re concerned about fulfilling your child’s financial needs. 

8. Group Insurance Plan

Group insurance plans to support the company and organization during unusual times such as insolvency, bankruptcy, etc. It is the best way to carry forward all the big financial goals of the company in the future. It even protects the employee wages during the mishappening. All the workers and the owner are covered under this plan.

9. Saving and Investment Plan

Saving and investment plans are the best to collect your savings for meeting the family’s future financial needs. It even provides the option of investment along with saving money. In addition, it offers various benefits to the insured, and you can withdraw the funds once the plan matures.

How Can You Choose the Best Type of Life Insurance Policy in India?

There are several types of life insurance policies in India. However, classifying life insurance policies seems the toughest. This is because every person has a different perspective regarding the best types of insurance policies in India. But it would help if you chose an insurance policy according to your needs as it fulfills various requirements. Moreover, here are some points to remember while classifying life insurance:

1. Choose as Per Your Plan

There are various life insurance policies available in the market, but our main motive regarding the choice is to choose as per your demand and purpose. Therefore, all kinds of insurance policies are available to fulfilling almost all the requirements.

2. Choose Wisely

Never listen to others, as there can be a differentiation between every person’s experience. Instead, focus on your goal and make a choice smartly.

3. Gain Necessary Details about the Company

Before investing or buying insurance policies from any company, look at their goodwill and all the required information. As many fraud companies in the market can harm your money.

Conclusion

Various people want insurance policies but need a better guide to invest. However, this article has already discussed all the necessary and different types of life insurance policies in India and their benefits. So make sure to choose policies according to your goals and plans, as multiple methods and procedures are available in the market.

What are the Different Types of Life Insurance Policies in India – FAQs

Which is the widely used life insurance policy by people?

Ans. Term life insurance and term plan is the widely used life insurance policy by people as it provides a great range of benefits to their customers.

What is the term insurance plan with a return of premium?

Ans. A term insurance plan is a plan in which no maturity amount is provided to the insured.

What are the two main differences between the types of life insurance policies?

Ans. The two main differences between the types of life insurance policies are the term and the relevance. The term policies have a period of around 10 – 30 years. However, relevant term plans are for life, considered the best part of this term plan.

Which is the longest insurance policy?

Ans. Whole life insurance policies related to term policies are the longest insurance policy.

Which types of insurance policies in India require more money or are more expensive- whole life insurance policy or term?

Ans. The whole life insurance policies are more expensive than the term one.