Types of Life Insurance You Can Find In Current Market

You must have heard people talking about how crucial life insurance policies have become nowadays. If you are planning to buy one, you must know about the variety that the life insurance world holds. We have collected the top four types of life insurance that you can find in the current market. With this, you will get a better understanding of what you are opting for, and you will not end up picking the wrong product. 

#1 Term Plan

The very first and most popular type of life insurance you can find is a term plan. In simple words, the term insurance plan is a pure life cover. That means it provides your family with an assured sum on your demise. Online term insurance usually collapses if you remain alive during the tenure. The benefit of opting for this option is that you get higher coverage in cheaper premiums. As these schemes provide coverage only on death, their premium is comparatively low from all other policies. 

In case you are worried about your money going waste, you can opt for TROP (Term plan with Return Of Premium). It returns the collective amount of your paid premiums as a maturity benefit. 

#2 Endowment Policy

These are the best long term savings plan, as you get double benefit in this. An endowment policy provides you death coverage while securing some funds for the future. So your family gets the sum assured on your demise during the policy tenure, or you get the saved amount if you are alive. You can keep the endowment policy as your security for financial goals. Being a long-term investment, it can be proven extremely beneficial. You can check out this future savings plan as well.

Along with this, you can also take a loan against the policy if you encounter any financial emergencies during its tenure. Therefore, you will never fall short of funds in life. 

#3 Whole Life Insurance Policy

Another type of life insurance you can find is a whole life insurance policy. Unlike the previous options, this one does not include a specific term for death coverage. Until you keep on paying the premium, your family will be eligible for claiming the assured sum. You can also take the benefit of the savings component of this policy. By investing your money, you can let it grow over time. 

Like endowment policies, you can take a loan against the invested amount during the policy tenure here also. 

#4 Moneyback Policy

As the name itself suggests, this type of life insurance gives your money back to you during the policy tenure. That means you get a part of the assured sum on regular intervals during the term, and your family receives the entire amount on your demise. If you remain alive after the policy term, you get the remaining money with a bonus on maturity. So, you can take advantage of the policy from the time you buy it. 

Conclusion

Now that you have understood everything about the different types of life insurance, you can pick the option that fits best in your requirements. Also, check with the provider for the advantages they offer on each of these types. Only then can you see which one is most beneficial for you.