There is also term insurance with return of premium wherein the premiums you pay are definitely returned to you on the completion of the policy term. The premiums charged on this are higher as compared to pure term plans.

Insurance cum Investment Products

As the name suggests, these plans provide insurance along with investment returns.

Endowment Plans

An endowment plan is a term plan which provides the sum assured with an addition bonus or guaranteed additions that may accrue during the policy term. As it provides higher returns, it also charges heavy premiums. There are two types of endowment policies

Without Profit Endowment Plans

Profits which your insurance company earns each year are not shared with these plans. Apart from the sum assured, you would probably receive a loyalty bonus, which is paid once for in appreciation of your decision to hold the policy for several years.

With Profit Endowment Plans

These plans participate in the profits made by your insurance company each year. This policy offers higher returns than without-profit endowment plans. As it provides extra payback than the without-profit endowment plans, it also demands higher premiums.