How Many Types of Life Insurance Are There?

How many types of life insurance are there?

Life insurance can be used to cover a variety of needs from investment to meeting financial goals. The following are the major types of life insurance policies:

1. Term Life Insurance: Term insurance covers the policyholder for a specific period or ‘term’ and offers a high cover for a low premium.

2. Whole Life Policy: Whole life policies cover the policyholder for the rest of their life. Therefore, the sum assured is guaranteed to the beneficiaries and many people use these policies to create an inheritance.

3. Endowment Plans: Endowment plans come with maturity benefits. Thus, if the policyholder survives his/her term he/she is paid the maturity benefit, and if he dies, the sum assured is paid to his/her nominees.

4. Unit Linked Insurance Plans (ULIP): ULIPs provide an option to invest in any qualified investments, along with the death benefit.

5. Money Back Policy: Money back policies invest a part of the premium and provide periodic benefits. This is along with the death benefits.

All these policies are available for purchase both online and offline.