Various Insurances on Offer

A chunk portion of every individual’s life goes in accumulating wealth to accomplish all the dreams and desires of himself and his loved ones. At some point in life we seek for security for all that we have earned, we have built.

Insurance exactly fulfils this quench of yours. There are a host of options to choose from in the insurance category. Let us define some of the different types of insurance policies in India to make your search a little easy.

Following are the various insurance policies available

Term Insurance

A type of insurance brought into use post the death of the policy holder. It is more of a contract between the life insurance policy and the insured. Wherein the company in entitled to pay the person or persons in case of death of the insurer post a certain time period. An individual can avail this policy for tenure of 5,10,15,20 or 30 years.

Endowment Policy

This type of insurance is a very good blend of insurance and investment. A premium is incurred from the insured person for a defined period of time. Once the policy is matured or either the insured is dead, a lump sum amount is received from the insurance company.

Money Back Life Insurance Policy

As the name suggests payment of partial survival benefits are given to the policy holder, as penned in the insurance contract, while the insured is still alive. God forbid but if the insured is dead while the policy tenure is still ongoing, the beneficiary gets the full sum insured without the deduction of the money back amount given so far.

Group Life Insurance

An insurance more often considered by an employer for the employees of the company.  As it gives the feasibility to bring a group of people under a single life insurance policy. Every member under this policy possesses a certificate of being the legal evidence of insurance.

Unit Linked Insurance Plan

This is again a combination of insurance and investment. The premium amount paid on the defined period, a portion of the amount is used to support the insurance and the rest is made to invest in avenues as per your choice or instruction. Therefore the Unit Linked Insurance Plan (ULIPs) comes with a double benefit for the insurer as it provides protection from the risk involved in investments and also paves various opportunities for the same. As these policies are connected to the market the insurer earns additional monetary benefits.

As said there are a host of insurance policies available in the market. However the decision of taking insurance does not happen overnight. And it is also advisable to not be impulsive about it either. A lot of thought needs to be given before zeroing on any of the policies. As there is always going to a debate going on about whether I really need insurance or I can do without it as well? The answer is very simple, as every individual is need of an insurance however the type and the other aspects of it depend on the individual’s financial stature and lifestyle.