Insurance Policy – Types of Insurance Policies in India

Term Insurance

A term insurance policy offers benefits to the family of the policyholder only if he/she dies in the specified term period as per the policy. If the insured remains to be living until the policy ceases, then there is no pay-out of any claim.

Benefits:

There are different types of life insurance policies; depending upon the type of coverage offered:

• Life coverage and financial security at an affordable rate of premium.
• Certain term insurance policies offer multiple flexible pay-out options.

Whole life insurance

Whole life insurance policy covers the entire living period of the policyholder. It includes a cash value component that increases exponentially over a period of time.

Benefits:

• Whole life insurance holders can either withdraw their cash or take loan against it.
• The insured can get coverage against death for the entire living period, unlike the term insurance.

Child Plans

A Child Insurance Policy helps you start saving and investing your money to secure your child’s future financial needs. You can withdraw the accumulated sum when your child reaches adulthood.

Benefits:

• Child insurance policy secures the future of a child even in the absence of parents.
• A secured loan can be taken against the policy in the intermediate period.

Retirement/Pension policy

Retirement policy ensures the policyholder a regular income even after retirement. With this plan, you can secure yourself financially in the old age.

Benefits:

• The retirement policy covers your financial needs post your retirement until the age of 100 years.
• The policy also offers a premium rebate.

Endowment Policy

Endowment policy ensures an amount to be paid either to the policyholder or their beneficiaries as per the maturity date. This policy serves both the purpose of insurance and savings.

Benefits:

• A policyholder can benefit from long term savings.
• Endowment insurance also provides terminal bonus and reversionary bonus to the policyholder.

Pocket Insurance

Also referred to as micro insurance or small insurance, Pocket Insurance is essential to safeguard yourself, your family, and your personal belongings from a variety of risks and uncertainties. It covers you in incidents such as wallet theft, road trip cancellation, electronic gadget breakdown, gym injuries, lost keys, damage to mobile screen, and more. Pocket insurance covers a host of products at an affordable price.

Pocket insurance policies can be categorized under the following segments.

Assistance: The products under Assistance category are designed to aid you with challenges in your everyday life. You can choose from a wide range of products such as Wallet Protect, Key Replacement Insurance, Purchase Protection Cover, ATM Assault & Robbery Cover, Designer Clothes Insurance, and more.

Lifestyle: The Lifestyle category under Pocket Insurance includes products such as Watch Insurance, Morning Walk Accident Insurance, Daily Commute Insurance, and more. Products under the Lifestyle category help you cover minor risks at very low premiums.

Travel: Pocket Insurance products under Travel category cover you against the vulnerabilities and risks during your journeys and trips. You can seek coverage for your road trips, treks, pilgrimage, and even your baggage. The duration of the policy ranges from 10 days to 365 days.

Health: Under the health category, you can avail a range of health insurance policies including Child PA Cover, Pregnancy Complications Cover, Hospital Cash Cover, Dengue Cover, Infection Cover, amongst others.

Why Should You Buy An Insurance Policy Early in Your Life?

An Insurance policy safeguards you against financial risks due to loss or damage to your assets or valuables. Delaying the purchase of an insurance policy exposes you to multiple risks and hazards. Most insurance companies come with an upper age limit for entry, so you may not be eligible to apply for health insurance after you cross a certain age. If you have had insurance since a young age, you can have a lifetime renewability. Some insurance policies also offer you tax benefits.

What Are The Benefits Of Buying An Insurance Policy Online?

You can buy an insurance policy offline through an insurance broker or you can buy the same online from our website. Purchasing insurance online is more convenient as the whole process hardly takes a few minutes and you get your policy document emailed to you almost immediately.

Here are some of the benefits of purchasing an insurance policy online.

1. Convenience: You can easily purchase an insurance policy online from the comfort of your home. With just a few clicks on the screen, you can secure your valuables.
2. Online reviews: Before you buy a policy online, you can read reviews about a policy online. This will help you make an informed decision.
3. Easy comparison: You can compare multiple insurance policies online and choose the one that best fits your requirements.

How Should I Choose My Insurance Policy?

Most financial planners suggest purchasing an insurance policy even before one starts to save. One must secure their lives and valuables without giving a second thought to it. To the least, one should definitely invest in a life insurance policy to safeguard the lives and future needs of their near and dear ones.

Here are few factors to consider before choosing an insurance plan:

• Select the indemnity cover that suits you: Insurance plans are tailored as per different segments like an individual health plan or a child plan. You can analyse all the existing plans and choose a plan that meets your specific requirements.
   
• Estimate your coverage amount: There is no certainty as to which category one falls into. However, it is wise to take into account various factors like lifestyle choices, hereditary illness, city of residence, etc. to estimate the coverage amount.
   
• Compare your pocket costs: Insurance companies do not cover you for the entire amount of loss. There is a certain percentage of the claim amount that has to be borne by the policyholder. You can always cross-check different plans and pick the one that offers you maximum coverage at a reasonable cost.
   
• Benefits: Benefits offered by every plan is different. You are likely to narrow down your options once you come across this point. While comparing policies, a lot of people simply go by the lowest premium amount when they should actually look for the benefits that each policy offers.
   
• Budget: A policy should not be chosen purely based on its premium. However, you must carefully analyse the benefits that a policy offers as against the premium paid. The cost of insurance must be reasonable enough. Also, if price is a major concern, you should check out the Pocket Insurance policies offered by Bajaj Finserv. These policies offer you adequate coverage at premiums starting from just Rs. 79.