In this modern era where life is uncertain, purchasing life insurance is one of the most significant decisions that anyone can make. Irrespective of what one earns, it is suggested to purchase a life insurance policy according to pocket. This is because premature death, illness, or accident of the breadwinner can share the life of the entire family. This may lead to devastating financial consequences for the members of the family. However, there are many best life insurance policy in India available and if one has one of such plans, then the family can at least maintain their living standard.
A life insurance plan is something that offers a dedicated amount of money to the family of the policyholder on his/her demise.
This type of life insurance plan provides coverage for the whole life of the policyholder. To get the coverage, the claim should be made as the coverage duration is whole life. The nominee of the policyholder for sure gets a lump sum amount upon death of the policyholder. The premium of whole life insurance plans is high because it provides complete risk claim.
One of the most affordable or cheapest life insurance plans available in the market today is a term plan. In a term plan, the life insurance provider gives a lump sum amount to the nominee of the policyholder only when the policyholder dies within the term of the plan he/she has taken. In this way, if the policyholder outlives the term of the plan, the insurance company does not give anything. In other words, no survivor benefit is given in this plan. Many companies are providing term plan with survivor benefit as a rider; however, one has to pay some extra money to get the rider.
This plan is appropriate for the people who require both financial protection for family and some money during the policy tenure for meeting his/her requirements. In this way, as per this plan, the insurance company gives a lump sum amount at the death of the policyholder and some and a specific amount in specific intervals such as in five years and 10 years. The premium for this plan is also high.
This life insurance plan is a combination of protection and savings plan. Under this plan, the life insurance provider has to give a fixed amount at the maturity of the policy or death of the policyholder. Generally, the duration of this plan is 20, 15, or 10 years and the rate of premium are high. The policy amount that one gets can be without profit or with profit depending upon the policy selected by the policyholder.
A plan that provides both insurance and investment opportunity is known as a Unit Linked Insurance Plan or ULIP. The premium that the policyholder pays to the insurance company is divided into two parts. The first part is given to the insurance company's pool to meet the death claims of the policyholder. The 2nd part is invested in the investment market according to the preference of the insurance provider. The calculation of NAV is done every day for the investments.
A policy that helps to safeguard the future of the children is known as child plan. This policy gives a lump sum amount either for the marriage or higher education of the child. According to this policy, a child is eligible to get a specific amount of money once he/she attains a specific age.
As the name of this plan suggests, it offers financial help in the old age or when one gets retired. The retirement plan is for securing the age when the insured gets retired. One can start investing in this plan from a very young age or as soon as one starts earning.