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Term Insurance Policies |
Whole Life Insurance Policies |
Endowment Policies |
ULIP (Unit Linked Insurance Plans) |
Money Back Plans |
Pension/Annuity Plans |
| About the Policy |
Term Insurance is like another form of Life Insurance policy but it's the only insurance policy that provides the maximum risk cover against the amount of premium paid for the policy. Term insurance policy amount (sum assured) will be paid to the nominee or family but in case of death only. |
Whole Life Insurance plans provide coverage to the insurer as long as he is alive. This insurance plan helps you in staying insured for the whole life along with the savings. |
Endowment Policies are the best combination of investment and insurance. It helps you in getting insured during policy term along with the saving some money for the future purpose. Endowment plans are also available with unit-linked insurance plan in which portion of premium bifurcated for insurance and investment or the guaranteed amount at the end of policy with bonus. |
ULIP (Unit linked insurance plans) are purely driven as per Equity or debt market index. It provides investment options along with the insurance. |
Money back plans act as insurance product along with the benefit of the investment. These plans help you in maintaining better cash flow through regular pay-outs from time to time rather than waiting for the whole policy term to get over. |
Pension/Annuity plans help you in generating steady income after retirement. The rationale for choosing a pension plan is that at retirement age there will be no source of the income and you need funds for the daily living. Most of the people prefer to pay premiums while they are at a young age and wish to receive the money once you reach retirement age. |
| Eligibility and Policy term |
As per the various insurance company plans the minimum age eligibility to purchase term insurance is 18 years and the maximum age till term insurance will provide you cover is the age of 60-75 years. Term insurance policies are available for a period of 15-40 years. |
As per various insurance company plans the minimum age should be 18 years old and the maximum age, till you can purchase whole life year, is 50-60 years old. Whole Life Insurance premium policy terms are available from 10-40 years. |
To purchase endowment policy the minimum age criteria is 8 years old and the maximum 60 years old can opt for this insurance. Most of the people opt for longer duration like 30 years in endowment policies but a minimum of 10 years term plans are also available. |
The minimum age eligibility to purchase ULIP plans is 6 years old and the maximum age 50-60 years old. Whole Life Insurance premium policy terms are available from 10-40 years. |
In money back policy there are children plans which starts from 0 age and in normal plans, the minimum age is 12-15 years. For maximum age criteria is 50-60 years old can also opt for money back plans. In children money back plans people prefer pay-out as per the key phase in life but generally, policy terms are available from min. 5 years to max. 25 years |
Generally, people take a pension plan when they start earning well and are planning for retirement. However, the minimum age is 20 years old and maximum 60-70 years old can invest in pension plans. Policy terms are available from 10-35 years. |
| Benefits after policy term (Maturity Benefits) |
Term insurance premiums are purely meant to give financial protection(Risk Cover) to the family after the death of the policyholder. In term insurance, there are no benefits given after or at the end of the policy. The insurance company will give a claim in case of death only. |
Most of the insurance company have set the maximum age of maturity from 80-100 years. Once an insured person reaches that age the maturity amount is paid along with the bonus. |
In the endowment policy after maturity, you will get guaranteed returns along with the additional benefits |
Since ULIPs are totally dependent on the market. When the policy term ends and the unit allocated to you while purchasing the policy are calculated on the basis of NAV. |
As per the money back plans the maturity benefit amount is given in the form regular payouts depending on the policy term plan and payout structure |
Once you reach the retirement age the pension starts and the payout will be given as per the policy term. There are no additional benefits given after maturity of the policy. |
| Benefits in case of Death (Death Benefits) |
During the period of term insurance policy, if the insured person dies… all the claim insurance money will be given to the designated nominee or family. In most plans insurance company nominee/family have the option of choosing the pay-out in a lump sum, monthly or any other mode. |
If the insured person dies before reaching the maximum age then sum assured amount and bonus (if any) will be paid to the designated nominee or family. |
If the policy is active and during that policy term in case there is a demise of the insured person then all the death benefits along with the bonus will be paid to the nominee. |
In case of death during ULIP plans the benefit actually depends on the number of premiums paid for the same or for how many year policies is active. Generally, the company decide on the above two parameters and then give benefits to the nominee. |
In case of death, the Sum Assured decided in the beginning while taking policy will be given to the nominee irrespective of the money paid through regular payouts |
If there is death case in pension plans then pension will be paid to the nominee or all the premium paid amount will be given to the designated nominee or family |
| Additional Benefits |
Term Insurance plans are the only plans that provides maximum coverage to the family if there is any uncertain death event in very low premiums. You can also opt term insurance riders i.e. Personal Accident Cover & Waiver of Premium along with the policy to complete the security in case of uncertain/un foreseen events |
Whole Life insurance providers cover the maximum age for the insured person. In case of death event, it also pays the sum assured and bonuses and if there is survival then there are also bonus associated. Even if you have reached the end of term it will still provide you risk cover. |
Endowment plans give the flexibility to choose plans as per willingness to take a risk or get a fixed amount plus bonus depending on the policy in place. |
Unit Linked Insurance Plans provide a high return on the investment in comparison to all the other insurance plans. These plans are a perfectly blended mixture of insurance and investment. |
Money back provides you flexibility in the maturity benefits so that you can plan the payout as per your need to avoid any cash crunch during the key phase in life. In some plans, bonuses are also given either on the death or last payout of the policy |
It is very helpful after reaching retirement age to bear expense when you are not working. Pensions acts like a salary payout for the insured people and support to the family |
| Premiums paid against policy & mode |
For term insurance you have to bear very low premium as compared to all other life insurance plans because there is no benefit given in the case of survival. In term insurance, you can have a half year, quarterly, yearly or even monthly payment mode for the premium. |
For whole life insurance you have to pay a little higher premium since it provides you cover for the lifelong and death benefits too. In whole life insurance, you can opt for a monthly, quarterly, half year or yearly payment mode for the premium. |
Endowment plan premiums depends on the planned nature. If it’s linked to the market and investment is involved then premiums are slightly are higher than the other plans. You can opt for a half year or yearly payment mode for the premium. |
Premiums in ULIPs are higher due to the investment and insurance combination. You can opt for a half year or yearly payment mode for the premium. |
Since money back plans are not linked to the market so the premiums are generally quite reasonable depending upon the term of the plan. You can opt for a half year or yearly payment mode for the premium |
In pension plans generally premiums depend on the amount you have required as pension after retirement. When you set the sum assured then the premium is divided over the policy term. You can opt for a half year or yearly payment mode for the premium. In a few plans, you can give one-time lump-sum amount and pension will be decided as per the plan |
| Beneficial/Suitable for |
Insurance and Investment are two separate things. Term insurance plans are must have to cover the insurance part for the family. It is beneficial or suitable for all age category people because it provides maximum coverage in very less premium. |
Whole life insurance plans are most suitable for the people who do not want to take any risk and live a secured life. It is actually meant for the people who are looking for life long insurance rather than a fixed period as per the policy term. |
Endowment plans are beneficial who are looking for investment for a longer period and stay insured. Generally, bonuses are dependent on the term of the policy, so longer the period and return will be higher. |
ULIPs are beneficial for the people who want to make a portfolio with a higher rate of return along with the insurance part. Most people do it for the purpose of main events in life i.e. Children Education & Marriage, Retirement |
Money Back plans are very beneficial for those who are looking to receive funds on the particular planned events in life. Moreover, it also covers the need for insurance in case of death. |
Pension plans are beneficial for everyone because after retirement there is a dire need for the funds to manage. If you will start planning retirement at an early age of professional there will be a fund available in the old age when you needed the most. |
