There are many forms of insurance plans in India. Some plans are simple which only give the coverage for the amount which we had paid in the form of premium whereas others plan give us the benefit of pension or survival benefit through which we protect our family and make sure that our family's future is secure if something wrong happen to us. It is us who decides that which plan is best for our family as per our capability and personal need. Below given are some types of insurance plan along with their benefit.
This policy is known as money back because we get regular payment in certain intervals. In the case of unfortunate death of policy holder the family is paid the whole sum assured amount even if the policyholder has paid some money as part of money back scheme. Hence, these policies never stop after insuring our life for particular amount.
It can also be referred as the basic form of life insurance. In this type of plan we pay the premium and insurance company ensures that we are covered by a certain amount for the period of the policy. In simple way in this plan we can decide the period and the amount of the policy. We pay the premium for that particular amount and in that time if some wrong happen to us then the family will get the amount that we are insured for. Such plan can be last for ten to twenty years depends on the condition put down by insurer.
As the name suggested this type of plan ensures that we keep receiving regular monthly income after the retirement. We cannot work for life time. Therefore the aim of such policies is to help in enjoying the life and spend quality time with the family and grandchildren.
In ULIPs, some amount of the premium which we pay is devoted to protect to our family and rest of the amount is being invested in markets.
With the help of such plan we can make ourselves easy about our children's future. Many companies give the choice to take an insurance plan for family which takes care of our family and child in case of any mishap.
This life insurance is basically designed for family members. In this scheme a contract or plan can be the combination of two scheme for e.g. If a couple buy joint life insurance plan then the plan they take can be either a ULIP or a Term Plan or it can be any other life insurance plan. This scheme ensures that in case of sudden demise of any of partner the other will be financially independent.
The benefit of taking life insurance is so high that they make a necessary investment. However these benefits can be different from one company to another but common goal is same of each company and that is to ensure that an Insurance plan should always have something for us and family as well. Below are some advantages
Primary advantage of an insurance plan is that it is not only an insurance plan but also the family life insurance plan because one who gets the maximum benefit is family. With the help of a life insurance, we can provide a secured financial future to our family even if we are not there.
Term plan may not be enough for some people because they want some kind of benefit at maturity time and during policy period time. Money- back plans gives some benefits like regular payments to policyholder, maturity benefit and also pension planning in which insurance policy plays the role of pension once you retire.
There is no requirement of being rich to buy an insurance plan. If a person is not financially strong to pay the premiums for some plan he/ she can always go for Term life insurance plan with money- back option because premium of such policies don't cost too much to our budget. For family’s protection, Term life insurance plan is very reasonable.
If one chooses joint life insurance policy then the benefits are more than the expected return. Premiums of such plans are cheaper than other life insurance plan and it is very easy to understand. We can understand this plan with the given example.
A husband and wife has taken this plan and after some time husband dies in this case the wife is paid the whole sum assured amount through which she can take care of her and her child. After few years if wife also dies while policy is in effect, then her child will get another payment in the form of sum assured amount in the same policy.
Life insurance policy only talks about the amount which is payable to family after policyholder's death but what if policyholder does not die or he/ she become handicapped or cannot work? There are some family protection plans which cover after one becomes handicapped and those are known as Accidental Total Permanent Disability. In this plan one can claim sum assured amount of the policy after becoming disable.
Along with the growth in this sector many companies are coming with such offers which suit to a wide variety of customers. Today one can get the policy as per their personal requirement. There are so many plan namely Term Plan, endowment plan which gives maturity benefits, ULIP plan which is connected to share market. Family insurance plan are there to take care of family in case one dies or become handicap or cannot work.
Policy holder can get tax benefit for the premium they paid under section 80C because insurance plans are covered by relevant tax rules.