We can’t deny the fact that Life insurance is an important aspect in every one’s life in today’s day and age. But, with the Indian market being flooded with plenty of life insurance investment plans; it becomes a daunting task to narrow down your search on one! Here, in this article, we will talk about the various types of life insurance policies that you can invest in. We will also give a rough idea about the whereabouts of these life insurance plans. Life insurance can be combined with investments and many life plans allow you to do that. Have a look at this article to know more.
Endowment plans are the plans that are straightforward, uncomplicated , practical in nature and perhaps too common. Here, a part of the premium that you pay is invested and the balance part is kept as a death fund. In case of your demise during the term of the insurance policy, your beneficiary/ nominee will receive the death benefit. But, you will also receive dividends from the funds that have been invested in while you are alive and the plan is on-going. These investments that are made in the endowment plans are usually risk free and fetch guaranteed and fixed returns, helping your fund to grow. You also have the liberty to withdraw the dividends periodically.
These types of life insurance plans are rather more of investment avenuesthan an insurance option. They provide to keep you insured till the last day of your life at the same time the investments also continue for an equal duration. This is how you can build up a pretty substantial corpus. ‘A little higher on the cost’, is one of the drawbacks of Whole life insurance plans.
These too are popular investment option in life insurance. A part of the premium that you pay towards ULIP is safely kept in an insurance fund that will be as a financial security to your family members whereas the balance amount is invested in the financial market. ULIPs are of different types. You can opt for a cash fund if you have a low risk appetite whereas if you have a higher risk appetite, you can opt for an equity fund.
Money back plans help you to make an investment that will be beneficial for your own future. Here, pay outs at a fixed percentage of your sum assured are made at regular intervals. Life event such as, starting a new business, etc. can be milestones wherein you can choose to invest. In short, you can start investing and then choose to get a part of these funds when you start your business. In case of up gradation of your business, you can ask for another pay out. Thus these plans are helpful and also offer life cover.
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