Know All About Life Insurance Policies in India


Bangalore: Do you have a family and have a lot of things to take care of? You are doing your best to take care of them. You have a safe investment in your PPFs and FDs and now you want to take a life insurance, but is still confused which will serve you better according to your needs. Here are various types of insurances, which will help you to understand better about your portfolio and will help you to decide which policy will be the best to cater your requirements.

Usually there are three types of policy – one which offers pure protection that is insurance, another which offer protection as well as investment, and a third kind which offers only investment. In India, life insurance is more of a tool of investment rather than a way of proper financial planning. Let’s have a look -

Term Insurance Policy

It is the only kind of the pure insurance policies, known as the term insurance. Term insurance policy will cover the risk of your death only for the term of your plan. Here you pay premium year after year and if you die before your policy tenure, the insurance amount, called the Sum Assured, would be paid to your policy nominees. If you survive, no payment will be made to you and you would lose the yearly premiums you paid. The premium charged on term Plan is lower than the other form of life insurance plans, as it covers only the life risk.