Types Of Life Insurance
Life Insurance is a mutual agreement between an insurance policy holder and an insurer in which an insurer promises to pay a specific sum of money upon the death of the insured person.

Life Insurance basically covers the risk after your death as it provides the amount of money insured by you, to your family upon your death. Moreover, it also includes the risk upon your retirement as the insurance company provides you the specific amount of money that you insured. This provides you with great benefits after retirement. Therefore, it’s very important for you to choose the right policy or Insurance cover.

There are different types of policies that are currently available in the financial market. Hence, you can easily choose a policy that suits you. Given below is a list of the different policies that you can apply for:

Term Insurance
In Term Insurance, the premium is the lowest and this policy is for a specific time-period. This policy has the lowest premium as compared to all the other policies. There is a term selection option available in this policy in which you can specify the time-period for which you would like to make insurance like, if you select 35 years, then you get insurance amount after 35 years. It includes fixed payments. If the untimely death of the insured person takes place then, the insurance company provides the amount specified in the agreement, to the insured person’s dependents. There is also an option to customize this Life Insurance policy by adding additional riders.

Endowment Insurance
Endowment Insurance offers insurance cover for a definite period of time. In this policy, the insurance company provides the amount assured along with the bonus. This plan is more useful after the insurer’s retirement means it provides great benefits after retirement.
Whole Life Insurance
Whole Life Insurance Policy does not include any maturity date and in this policy, the dependents of the insured person will get the specific amount only after the death of the insured person.  The various benefits included in this policy are guaranteed death benefits and cash values, and fixed but known annual premiums.

Money-Back Plan
Money-Back plan provides Life Insurance cover for a specific period of time. These plans are best for the persons that need an insurance cover plus savings in a single product. It includes a valid return rate and is tax exempted.

ULIP
ULIP refers to Unit-linked Insurance Plans includes the Life Insurance benefits and Mutual Funds Benefits together in a single product. A certain part from the premium is invested in equities, debt funds or bonds and the balance is used to provide for life insurance expenses.

Pension Plan
There are two types of pension plans. The first one is endowment and the other is unit linked. In Former, the investment includes fixed income products. Thereby, these have less return rates. The later plan is more flexible than the former. In the later, an insured person has to provide the sum of money for a fix period of time and after that your given fund will compound till vesting period.

Riders
You can also opt for riders that refer to the additional benefits under a policy. Riders are used to get additional protection from risks. Various examples of riders include the Term rider, the accidental death benefit rider, critical illness rider. You can select riders that suit you.

Gaurav Khurana is an expert on Life Insurance. He is the Founder Director of DIALABANK.COM (Call 60011600) and Ex National Sales Head – ING Investment Mgt India and Vice President Citibank N.A