When it comes to securing your family’s financial future, determining the best life insurance policy you require is critical. While there are numerous types of life insurance policies, they may all be classified as either term or permanent. The only difference between them is how they work.
In today’s article, we will go over the different types of life insurance policies and the best life insurance policy in each category.
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Types Of Life Insurance Policies
The different types of life insurance policies include:
Term Life Insurance
Term life insurance is one of the most common types of life insurance and is often regarded as the most basic sort of life coverage.
Term life insurance works by paying a fixed monthly premium (such as INR 2000 per month) for a particular amount of coverage (such as INR 40 lacs) for a set time or term length (Like 20 Years).
If you live over the term length, the insurance will expire; however, you can renew it on an annual basis, at which point your premiums may increase.
If you die before the term expires, your beneficiaries will get the total amount of the coverage (or death benefit).
You should now be able to see why this is the best life insurance policy.
iSelect Star Term Plan – Canara HSBC Oriental Bank of Commerce
The iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce is a pure protection term plan that provides full coverage to the insured’s family. This plan, as one of the insurance plans available on the market, is suitable for people who wish to guarantee the future of their loved ones at a reasonable premium cost.
Whole Life Insurance
The other major types of life insurance are known as whole life insurance.
Whole life insurance is a form of permanent life insurance that covers you for the rest of your life.
Unlike a term life insurance policy, a whole life policy allows you to accumulate cash value.
Whole life insurance works by having you pay a fixed monthly premium (say, 6500 INR per month) for a particular amount of coverage (say, 36,00,000 INR) for the rest of your life.
When you die, your death benefit will be paid in full, and if you have allowed your cash value to accumulate, it will be paid in addition to your death benefit.
PNB MetLife Whole Life Wealth Plan
The PNB MetLife Whole Life Wealth Plan is a comprehensive insurance plan that provides insurance coverage, wealth building, and the option to invest in a variety of market-linked funds. This insurance policy is highly recommended for inclusion in one’s financial portfolio.
Simplified Issue Life Insurance
Simplified issue life insurance is most frequently a form of term life insurance that allows you to obtain life insurance quickly.
These plans are commonly referred to as No Exam life insurance policies; however, they go a step further by removing items from the underwriting process.
You may eliminate a phone interview, medical documents, and a lengthy application procedure with a Simplified Life insurance policy, in addition to not having to take a medical test.
Insurance companies utilize your personal information from a variety of sources to make an instant decision on your insurability.
ICICI Prudential iCare II Plan
The ICICI Prudential iCare II Plan is a non-participating pure term plan that can be purchased on the company’s website. This plan, like a term plan, provides excellent protection at extremely low premium rates, covering the family’s future requirements in the absence of the breadwinner.
Mortgage Protection Life Insurance
Mortgage life insurance is one of the types of life insurance policy that will pay your mortgage company immediately if you die.
It is a sort of decreasing term insurance policy that is also known as mortgage protection insurance.
As you pay down your mortgage, the coverage amount or death benefit lowers to match your mortgage balance. These plans typically leave nothing to your family, only the mortgage company.
LIC Mortgage Redemption Plan
The LIC Mortgage Redemption Plan is a pure protection Term Plan that protects against all loans and obligations. It implies that if the life insured dies within the policy term, the lump sum Sum Assured is paid to pay off any outstanding loans and obligations, leaving the family with no need to pay any. If, on the other hand, the life insured survives until the end of the policy term, nothing is payable on policy maturity.
Accidental Death Insurance
Accidental death insurance is one of the types of life insurance policy that only pays out if you die in an accident.
These plans do not need you to go through underwriting; therefore, they are essentially guaranteed approval policies.
An accidental death insurance policy works by paying a certain monthly premium (such as 400 INR per month) for a specified amount of coverage (such as 73,00,000 INR) until you reach a certain age (Usually 65).
The coverage will not pay out if you die due to causes other than an accident.
These plans can be purchased independently or as a rider to standard term life insurance.
If you add accidental death insurance as a rider to a term policy, it will payout in addition to your life insurance if you die in an accident.
Bharti AXA Smart Individual Personal Accident Plan
Bharti AXA provides a variety of health insurance products, each tailored to the specific needs of its consumers. The Smart Individual Personal Accident plan is a type of health insurance that covers severe accidents that result in death or permanent disability. It also covers small injuries such as burns, sliding and falling down the stairs, and other minor everyday ailments. The payment for this plan must be paid in one single sum, and the coverage is for one year.
Guaranteed Issue Life Insurance
A guaranteed issue life insurance policy is also the best life insurance policy that does not need you to answer health-related questions in order to be approved.
While they can be both term and permanent policies, guaranteed issue plans are mainly oriented at seniors as whole life policies or for those who require high-risk life insurance.
If you cannot obtain approval for a standard life insurance policy or a last expense policy, this is typically your only choice.
These plans have a 2 to 3-year waiting period before the whole death benefit is paid out.
If you decide to obtain this sort of coverage, always inquire how long the waiting period is.
If you die before the waiting time is up, the insurance will only pay out the premiums you paid plus a few percentage points.
HDFC Life Click 2 Protect Life
HDFC LIFE Click 2 Protect Plus is comprehensive insurance that offers financial protection to the policyholder and his or her family at an affordable price. The plan is adaptable and includes a variety of riders and perks that aid in safeguarding the future of the life guaranteed as well as their loved ones.
So, these were the different types of life insurance policies that you can go for!
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