Life insurance is a contract between the policy holder and the insurance company where the insurer gives the sum of money on the occurrence of the death of the insured person. In return, the person agrees to pay the Insurance premium on time. There are lots of insurance plans that are provided by different Insurance companies. Therefore, I am providing some information about various life insurance plans.
1) Term Insurance Plan: A term insurance policy is a pure risk cover that can be taken for a particular time of period. In this insurance plan, the sum assured is payable only if the insured person dies within the term period. But it is beneficial for those people who have taken loans.
2) Whole Life Insurance Plan: The Whole life Insurance plan gives coverage against death, irrespective of when it happens. In this plan, the policy holder pays Insurance premium regularly till his death and after his death, the money is handed over to his family.
3) Endowment Plan: Endowment plans are the most popular plans in the whole world. Under this life insurance plan, the sum assured is paid even if the insured person survives the policy term. If the policy holder dies in this period, the insurance company has to pay the sum assured. You can take it as your financial savings. This policy offers the various benefits for the people such as double endowment and marriage or education endowment policies.
4) Pension Plans: Every person wants to secure his retirement age. This plan is ideal for those who are working in a private firm and will not get the pension after the retirement. By this plan, one can live stress life after retirement.
5) Money Back Policy: The Money back policy provides sum assured for the anticipated expenses such as marriage, education etc. for a particular time period. In this policy, a part of your sum assured is given at the regular intervals. In the case of death, the full sum assured is given to the nominee.