Whatsapp Icon

What are the Different Types of Life Insurance Policies and What are their Benefits?

 Life Insurance: What Does It Mean?

Life insurance is a contract between the investor and the insurance company where the investor pays a certain premium to the insurance company. In return, the insurance company provides various monetary benefits like tax benefits*, death benefits, helps pay off the debts, etc. There are various types of Life Insurance available for investors. These include Term Life Insurance Plans, Child Plans, Unit Linked Insurance Plans (ULIPS), Money Back Policies, Home Insurance, etc.

Life Insurance Policies: Types and Their Benefits 

There are various types of life insurance policies that the top-rated insurance companies provide to investors. An investor should go for a life insurance policy that is best suited for him and his family. Let us go through a few types of life insurance policies and their benefits. 

1. Term Life Insurance

Term Life Insurance is the most affordable life insurance available for investors. To secure your family’s financial future, Term Life Insurance can be bought at a low premium. 

Benefits :

  • In case of any mishap, for example, the untimely death of the investor, the family will receive the decided amount of insurance. This will help them deal with financial problems in case they arise after the death of their earning member.
  • You can cover life terms at an affordable cost. 
  • It also provides tax benefits*, health/illness benefits, accidental benefits, etc. 

2. Whole Life Insurance Plan 

This plan provides insurance for the entire life of the investor contrary to various other insurance plans. Usually, the maturity period of the Whole Life Plan is 100 years, which means that the investor can claim the insurance for up to 100 years. 

Benefits :

  • This Plan offers to pay death benefits.
  • It helps you save on your taxes. 
  • It also has a saving component, which lets you save your money as you invest it.
  • It does not expire and the premium stays the same throughout the insurance.
  • It builds cash value.

3. Endowment Plans 

This kind of Plan provides insurance to the investor in case of any mishap, such as untimely death of the investor, etc. and allows you to save money simultaneously. Moreover, as soon as the Plan hits maturity, the investor receives a certain amount of money, even If they survive the policy term. 

Benefits :

  • The endowment plan offers tax benefits*.
  • Your loved ones and family members are financially secure in case of any mishap. 
  • It helps you with loans. In case of a financial emergency, you may have to get a loan; Endowment Plan helps you acquire a loan.
  • With this Plan, you can save your money as well as secure your future. 
  • There is no market risk involved. 
  • Premiums can be paid flexibly: monthly, half-yearly and yearly. 

4. Unit-Linked Insurance Plans (ULIPs)

Under the ULIP, some of the amounts you invest are assigned to market equity. It lets you grow your wealth while providing long-term protection. The returns that you will get are dependent on the performance of the funds as chosen by you.

Benefits :

  • It not only provides you with life insurance, but it also helps your money to grow.
  • It helps you save on your taxes. 
  • Helps you achieve your life goals. 
  • Financially secure your family in case of any mishap. 
  • Helps you pay off your debts. 

Which Insurance Company to Choose Your Life Insurance From?

You should always consider buying life insurance from a leading and top-rated insurance policy company that provides one of the best Life Insurance Policies to choose from.  These companies can also offer various perks such as free health check-ups, cashless benefits, tax benefits*, etc.

Disclaimer:

*Income Tax benefits/exemptions are as per the prevailing tax laws in India, which are subject to change from time to time. Please consult your tax advisor for further details.

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Child Advantage

  • Choose between payout options that are based on your child's needs – Money back or Endowment.
  • Built-in premium waiver benefit
  • Flexibility to choose your Policy Term
  • Non-guaranteed annual simple reversionary bonus

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance Plan
  • Get life insurance cover and flexibility to customize your term insurance plan as per your needs!

Get Quote