Otherlife insurance policies

Depending on the type of plan you choose, your coverage can range from pure risk protection to wealth accumulation and retirement planning. The main type of life insurance policies available in India are as follows:

1. Savings Plans

Coverage: These plans combine life insurance with guaranteed savings, helping you accumulate wealth while ensuring financial security for their loved ones.

How It Works: portion of the premium goes towards life coverage, while the rest is invested in secure avenues, providing a lump sum or periodic payouts at maturity. This makes savings plans ideal for future financial goals like a child’s education or wealth creation.

Add-ons Available:

• Income Benefit Rider:Provides regular income to the family in case of the policyholder’s death.
• Premium Waiver Rider:Future premiums are waived if the insured faces disability or critical illness.
• Additional Sum Assured:Enhances life cover to meet higher financial needs.

2. Unit Linked Insurance Plans (ULIPs)

• Coverage:ULIPs offer dual benefits—life insurance coverage along with market-linked investment opportunities. These plans help build wealth over time while ensuring financial security for your family.
• How It Works:A part of your premium is allocated to life cover, while the rest is invested in equity, debt, or balanced funds, based on your risk appetite. The fund value is paid at maturity, and in case of the policyholder’s demise, the nominee receives either the sum assured or fund value, whichever is higher.

Add-ons Available:

• Accidental Death and Disability Benefit:Provides an additional payout in case of an accident.
• Partial Withdrawal Option:Allows policyholders to withdraw a portion of their funds after a lock-in period.
• Top-Up Option:Enables additional investments to increase returns over time.

3. Retirement Plans

Coverage:These plans help you systematically save for retirement while providing life cover. They ensure a steady income post-retirement, so you can maintain your lifestyle without financial stress.

How It Works:During the accumulation phase, premiums are invested to build a retirement corpus. At maturity, a portion of the corpus can be withdrawn as a lump sum, while the rest is converted into an annuity that provides a regular pension. In case of the policyholder’s demise, the nominee receives the accumulated corpus.

Add-ons Available:

Annuity Options:Choose from different payout structures like lifetime income, increasing annuity, or joint life annuity.

Return of Purchase Price:Ensures the annuity amount is returned to the nominee after the annuitant’s demise.

Critical Illness & Disability Riders:Provides additional protection against unforeseen health issues.

Note: The information provided herein is for general informational purposes only and is intended to serve as an illustrative guide. Specific document requirements, notification time frames, and procedural details may vary significantly between different insurers and policies. This summary is not intended to be comprehensive or a substitute for the actual policy wording. For precise and up-to-date information, please refer to your insurer’s official policy documents or contact them directly.