Term insurance plan is very much important in today's world of uncertainties. It offers the much required financial support in times of any sudden events like the breadwinner's demise. Also, online life insurance policy supports the family member in the need of the hour. Now, these plans have developed into a wide range of types. From basic term policies to investment linked protection policies, the choices available are numerous.
Know Your Options
All term insurance policies online work with a similar aim-of giving insured person's family a pre-determined sum of amount in case of breadwinner's sudden demise. Apart from this vital and basic nature, some insurance products offer specific yet additional advantages catering to the variety of requirements of insured people.
- Basic Life Insurance Plan India
It offers protection in the form of sum assured and paid when policyholder's death occurs during the term period. Usually, term ranges between 5-35 years. It gives no maturity or survival benefits. The main feature of life insurance plans is its affordable rates and higher coverage.
- Endowment Plans
Products come under this category are a combination of insurance and savings. If insured's death occurs during policy term, then benefits provided to nominees. Maturity benefits paid out if policyholder survives. Endowment plans give a chance to create wealth along with protection. In fact, insured person is eligible to avail bonuses.
- Whole Life Plans
These policies are designed to make a valuable asset to the policyholder's beneficiaries to survive their lives without compromising with their current standard of living. Though, the premium payment term is limited.
- Unit Linked Plan
It is the combination of insurance and investment plans. Some portion of the premium paid is used towards term insurance and another portion is invested in bonds or equities. But, these products involve high risks on the basis of the underlying money invested in. It is the best plan for those who want to buy life insurance coverage but are also interested to invest in capital market because policyholders can avail a chance to invest in the share market.
- Money Back Plan
Plans available under this category pay back certain percentage of the sum assured at pre-determined intervals like after five, 10 and 15 years. Generally, these plans are called as investment plans. Money back plans pay at important life stages such as children's high education, marriage or retirement.
- Pension Plans
These policies are made to give a continuous income source during policyholders' retirement phase. These premiums are paid during eomployment years to receive annuity after retirement. Under retirement plans, policyholders become financially independent and get a chance to lead their lives on their own terms.
The decision of buying online life insurance policy should be depend on one's individual financial requirements. Each segment fulfills a specific set of needs. The choice is based on various factors like preferences, different life stages and financial commitments and so on. Get an idea about how much term insurance coverage you need and how much you budget have in hands. Person's financial commitments and need s change with different life stages.
Sarika Kodag helps readers to select the best term insurance as she has vast experience in this sector. She always looks out for subjects related to insurance and writes informative yet interesting articles on investing, saving and financial planning. Her forte is to comparatively analyze and suggest different insurance policies to her readers. She provides knowledge about various investing options and make reader aware of current news about insurance field. So, they can use it to improve their future.