Types of Life Insurance In English / How many types of life insurance are there?
Types of Life Insurance In english 2022: Hello friends, welcome once again with this new post of ours , what are the types of life insurance? (Types of Life Insurance In Hindi) ! Today, through this article, we will tell you how many types of life insurance are there and which life insurance will be right for us! So let’s start – Types of Life Insurance In English-
Friends, it is very important to have life insurance at present. We must take a good insurance according to our income, which can prove to be helpful for us in future along with life cover. If we have a little knowledge about insurance, then we can choose a good life insurance by ourselves or we can also take the help of a financial advisor in this.
There are mainly 7 types of insurance which are as follows –
1) Term Insurance Plan
This type of insurance is for a fixed period. At present, there are many such companies that sell term insurance plans. This type of insurance provides us only life cover, that is, we cannot save in it. That is to say that in term insurance, if the insured person dies, then only his family gets the amount of insurance, otherwise this amount will not be available.
Due to no investment or saving option in this type of insurance, the premium amount of its policy is very less. In this, you can get a term plan of Rs 1 crore for just Rs 500 to Rs 800! The purpose of term insurance is to provide security to the family in the absence of the head of the family. If you want that your family does not have to face any kind of troubles in your absence, then you must take this insurance.
You will get full tax benefit on the insurance premium of this policy.
This plan is a combination of both savings and insurance. That is, in this a small part of your premium is spent for your insurance while the other big part is invested. Due to the option of investment in this type of insurance, the amount of premium is very high. If you want both savings and insurance in the same policy, then this plan will be suitable for you.
3) Whole Life Insurance
In this type of life insurance, you get life cover. That is, whenever the insured person dies, whether his age is 95 or 100 years, his nominee gets the entire amount of the insurance claim. In this type of life insurance, the premium amount is often very high. The main purpose of this type of life insurance is to leave movable property to his heirs. The premium amount of this policy is tax free and the claim received by your heirs is also tax free.
4) Money Back Plan or Cash Back Plan
This plan is also a combination of savings and investment like an endowment policy. Under this plan, some percentage of the sum assured is returned to the insured person from time to time which is called survival benefit. When this policy expires, the deposit amount is paid as maturity value. Lifelong risks can be covered for the entire Sum Assured during the term of the policy by not paying the survival amount that is to be paid back from time to time.
5) Pension Plan
In this type of plan, you do not get any life insurance cover, but it is a source of income on your retirement. By taking this scheme, even after retirement, the person’s continuous income keeps on getting from his savings. This is a successful scheme for old age people. You also get tax benefits by investing in this scheme.
6) Child Insurance Policy:-
This plan has been made keeping in mind the higher education and other needs of the children. In this type of plan, a lump sum amount is paid on the death of the policyholder but the policy does not terminate. All his future premiums are waived by the company or some discount is given in the amount of premium and his premium is borne by the company. And the money is received after the child completes a certain period.
7. Ulip Plan
Unit Linked Insurance Plan (ULIP) is a combination of investment and protection plan and you get complete flexibility in how you invest your premium. That is, in this some amount of your premium is invested in bonds and some amount is invested in shares. And like a mutual fund, you are given a unit in it! Now, as the value of your investment will decrease or increase, in the same way the return you will get will be decided. An advantage in this is that you are given the right to invest in how much shares and how much amount you want to invest in bonds. If you want to invest for a long period, then this plan can prove to be good return for you. You also get the benefit of tax exemption in ULIP plan!
You should always invest by understanding all types of life insurance and keeping in mind your income and future needs. For this, you can also take the help of experts who will help you in choosing the right insurance. By the way, if you want life cover then you must take a term plan which will be easily available to you in very low premium which will provide a good financial support to your family in your absence. On the other hand, if you want good returns and want to keep the investment period too long, then you should invest in Mutual Funds or SIP!
Friends, these were the types of life insurance, I hope you have understood! Still, if you have any problem in understanding this, then you can ask us through the comment, we will help you in every possible way!