TYPES OF LIFE INSURANCE

When Mr. Mehta decided to get life insurance to protect himself and his family, he had to be sure he was choosing the right policy. He had to buy a life insurance policy that caters to his needs, as well as his son’s education needs and his daughter's marriage expenses. He was clear about that. These decisions could not be taken lightly anymore. When he was faced with his own mortality, it gave him the push he needed to save wisely and save for the future. His life insurance company helped him derive a formula that best suited his requirements and the requirements he has for his children. The various life insurance policies he could choose from are listed below:

Term Insurance

This type of life insurance policy is a contract between the insured and the life insurance company to pay the persons/s he has given entitlement to receive the money, in the case of his/her death, after a certain period of time. These policies can be taken for 5, 10, 15, 20 or 30 years.

Endowment Policy

In an endowment policy, periodic premiums are received by the insured person and a lump sum is received either on the death of the insured or once the policy period expires.

Money Back Life Insurance Policy

This policy offers the payment of partial survival benefits (money back), as is determined in the insurance contract, while the insured is still alive. In case the insured dies during the period of the policy, the beneficiary gets the full sum insured without the deduction of the money back amount given so far.

Group Life Insurance

This is when a group of people have been named under a single life insurance policy. It is popular for an employer or a company to add employees under the same policy. Each member of the group has a certificate as legal evidence of insurance.

Unit Linked Insurance Planhttp://www.maxlifeinsurance.com/insurance-explained/Type-Of-Life-Insurances.aspx

ULIPs (Unit Linked Insurance Plan) offer the insured the double benefit of protection from risk and investment opportunities. ULIPs are linked to the market where the insured’s money is invested to help earn additional monetary benefits.