In this world, every person wants to secure his family. He can invest money in PPF, mutual funds, insurance plans and many more.
There are numerous insurance policies provided by various insurance companies. So we cannot easily decide the perfect policy for ourselves. There is a brief description of some life insurance policies that can help you choose the right plan.
Term Life Insurance: – Term life insurance is insurance that provides coverage for a specified period of time. After this period, the policyholder may continue their policy or may cancel their policy. If the policyholder dies within the effective period, the candidate will obtain the death benefit. This insurance plan is very affordable. The policyholder can pay a low monthly premium based on the length of the term and the amount of coverage they choose.
Whole Life Insurance: – Unlike term insurance, a whole life insurance policy provides coverage for your entire life, not for a set period. In this insurance policy, the policyholder gives the amount of the insurance premium from the date of issue of the policy until he turns 100 years old. If he dies in this period, his dependent will get the face value of the policy. This policy can also be used as an asset. A person can also take loans from the accumulation of cash with the help of the policy. If the person reaches the age of 100, he will get the full amount immediately.
Money back insurance: – In money back insurance plans, the policy holder will obtain periodic payments of partial survivor benefits during the term of the policy. The main feature of this policy is that if the insured person dies during the term of the policy, the death claim will be awarded to their nominee with the sum insured without deducting any of the survivor benefit amounts.
ULIP insurance plans: – ULIP plans are the combination of investment and insurance. This is a long-term, systematic, goal-based investment plan. One can get tax benefits under section 80c of the Income Tax Act. The two key features of this product are flexibility and transparency. Many ULIP plans provide options to raise or lower premiums after three years.
Riders: – Riders are additional benefits that one may choose to include in their policy in addition to what the insurance policy provides. These plugins come with additional premium charges depending on the add-on you have chosen. One cannot purchase these riders separately.
To summarize, there are details of some insurance policies that can help you select the right plan for you. Before buying any insurance policy, a person should compare all the policies and choose the policy that meets his requirements.