Traditional Insurance Plans

This is an insurance plan that offers you a combination of saving and insurance. In this plan, a part of your premium goes to life cover. The remaining amount is invested for good returns. If the policyholder outlives the policy term, he receives a maturity benefit. In the event of the death of the policyholder, the nominee gets the death benefit.

The plan also offers regular bonuses that get added to your corpus. The bonus amount is either paid on maturity to you or as a death benefit to your nominee, along with the sum assured. The returns are lower since the risk is zero in the endowment plan.

This is a unique insurance plan that gives a percentage of the sum assured to you periodically as a survival benefit. You can use the regular payment received to meet your short-term goals. If the policyholder passes away, the nominee receives the sum assured (in addition to periodic payment received by the insured).

For example, if you buy a 20 year money-back policy with a sum assured as Rs 10 lakh. You will receive 20% of the sum assured every five years. So, you will receive Rs 2 lakh in the 5th policy year, 10th policy year, 15th policy year, and the remaining on maturity along with bonuses if any.

These are the simplest form of life insurance plans and very easy to understand. These are very affordable plans and should be considered by everyone. With a term insurance plan, you get death risk cover for a specified period. The period could be 10 years or 30 years. In an unfortunate event during the policy term, the nominee receives the death benefit. It is a pure risk cover plan, and hence the premium you need to pay is low.

You also have an option to add riders to the plan and widen your coverage. The death benefit is paid to the beneficiary as monthly pay outs, lump sums, or a combination of both. If the insured outlives the policy term, there are no pay outs or maturity benefits.

Whole life insurance gives you life cover for a lifetime (up to 100 years of age in some policies). In case of the demise of the policyholder, the nominee receives a death benefit along with bonuses, if any. If the insured outlives the age of 100 years, they receive a matured endowment coverage from the insurance company.

You have an option of partial withdrawal after the completion of the premium payment term. The premium for a Whole Life Insurance plan is slightly higher compared to the term plan.