Term life insurance plan is bought for a fixed period only. In which the risk is covered only during the chosen time. There is no maturity benefit under this.
Life can be secured by taking life insurance. Experts say that life insurance is a must in any investor’s portfolio. In which there is a contract between the insurance provider and the person taking the insurance plan.
If an accident happens to the insured person or the person dies, then in such a case, financial help is given to the person or the person’s family members by the insurance company. In case of the person’s death, the amount received from SIC proves to be helpful for the family.
Types of Life Insurance Plans
Whole Life Insurance Plan
In this, the benefit of insurance cover is available for the whole life. If the policy holder dies, then the amount of insurance claim is given to the nominee.
Term Life Insurance Plan
Term life insurance plan is bought only for a fixed period. In which the risk is covered only during the chosen time. There is no maturity benefit under this.
Endowment Plan
In this plan, you get the benefit of both investment and insurance. In this plan also, risk is covered for a fixed period. When that period is over, the policyholder is given sum assured along with bonus.
Money Back
In this plan also, you get the benefit of insurance and investment for a fixed period. In this, sum assured is given in installments. The last installment is received when the policy is about to end.
Unit Linked Insurance Plan
In this investment plan, security is also included along with investment. In this, the return is based on the fluctuations of the market. In this, money is invested in shares and bonds. For which investors are given units like mutual funds.
Difference between Life Insurance and General Insurance
The utility of both insurances is different. General insurance provides financial assistance in difficult situations of life. Life insurance provides coverage to life. Non-life insurance products are called general insurance, which are not included under life insurance. General insurance includes home insurance, travel insurance, health insurance etc.
