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Types of Life Insurance Policies in India

  • Highlights

  • Life insurance provides financial security

  • 6 major types of life insurance policies

  • Term plans are the most affordable life insurance

  • You can purchase life insurance policies online or offline

Life insurance is a financial tool that can help you provide security to your family and dependents. There are several types of life insurance policies that offer a variety of financial benefits. You can use these policies to meet a range of needs and address your short and long-term financial goals.

Here are the 6 major types of life insurance policies available in India:

1. Term Insurance Plans

Term plans are pure protection plans. They offer a high sum assured at lower premiums, making them the most affordable and simplest forms of life insurance. They provide cover for a specific period. The pay-outs received can be either lump sum or staggered.

2. Unit Linked Insurance Plans (ULIP)

ULIPs are life insurance plans that offer a combination of insurance and investment. In ULIPs, a part of the premium is invested in the market to earn returns while the other is utilised to provide life cover. ULIPs offer triple advantages of insurance, wealth-creation and tax benefits.

Additional Read: What is General Insurance and Life Insurance?

3. Endowment Plans

Endowment plans offer maturity as well as death benefits. If you die, your nominee gets the sum assured along with the accumulated bonuses. On the other hand, if you survive the policy term you get the maturity amount along with the applicable bonuses.

4. Money Back Policies

Money back plans, as the name suggests, are life insurance plans that offer regular pay-outs at distinct interval along with the life cover. A part of the sum assured is paid regularly, and in case you die, your nominee receives the full amount along with any accumulated bonuses.

You can use the pay-outs received to meet your short-term goals such as home renovation, going on a vacation, etc.

5. Whole Life Plans

Whole life policies cover you for your whole life. These policies pay your nominee the sum assured upon your death. This makes them a great choice to create an inheritance.

6. Child Insurance Plans

Child insurance plans exist to help you protect your child’s future. You can save up and build a corpus for your child’s higher education and marriage. They usually pay annual installments after your child turns 18. These plans continue even after death benefit has been paid in case of your demise. The insurer continues to invest on your behalf and may also waive off future premiums.

Disclaimer - *Conditions apply. This product is offered under the Group Insurance scheme wherein Bajaj Finance Limited is the Master policyholder. The insurance coverage is provided by our partner Insurance Company. Bajaj Finance Limited does not underwrite the risk. IRDAI Corporate Agency Registration Number CA0101. The above mentioned benefits and premium amount are subject to various factors such as age of insured, lifestyle habits, health, etc (if applicable). BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. This product provides insurance coverage. Purchase of this product is purely voluntary in nature. BFL does not compel any of its customers to mandatorily purchase any third party products.”

Secure yourself today with insurance from Bajaj Finserv

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