• In India, the most frequent investment choice among individuals is purchasing a Life Insurance Plan. Nowadays, insurance firms have developed plans that, aside from the basic purpose of solely providing a death benefit to the policyholder, have expanded to include numerous features that facilitate investment growth, opportunities to invest in the market, goal-focused investments, and much more. This has resulted in the launch of various plans under the umbrella of life insurance. Here are some that you should be aware of.

Term insurance plans

• Term insurance policies represent the most straightforward type of life insurance policies. The plan is specifically crafted to provide financial protection to your family in the event of an unforeseen occurrence. Under this plan, you can solely access death benefits, meaning if the insured individual passes away, the full sum assured is given to the policy’s nominee. Term Insurance policies typically do not offer any additional bonuses or maturity benefits. This plan can be obtained for a duration of 10 to 30 years. If the insured survives the insurance period, then no additional benefits are available from the plan. The premium rate for this plan is lower in comparison to other insurance options.

Endowment plans

• This is regarded as one of the most favorable savings plans by investors as it yields remarkable growth on your savings. Under this plan, you are eligible for both death benefits and maturity benefits. This ensures that your loved ones are financially secure even in your absence. You also receive maturity benefits if you outlive the policy’s term. The maturity payout of the plan additionally provides bonuses on the investment accumulated throughout the investment duration. This plan can be taken for a period of 10, 15, and 20 years or until a specific age is reached.

ULIP plans

• ULIPs or Unit Linked Insurance Plans are life insurance plans that afford you the opportunity to invest in securities. In this plan, the premium you contribute is allocated to equities or debt funds while the remaining amount is set aside for life coverage. Consequently, this plan provides a death benefit in the event of the insured’s death and also offers significant maturity benefits with the growth in the equities market. However, there may be certain stock-related risks if you decide to invest in this policy.

Pension plans

• Also referred to as retirement plans, this life insurance plan is considered the best way to accumulate funds for your retirement years. The investor is required to regularly pay a specified amount of premium towards the plans for a designated period. Upon maturity, the plan disburses a specific sum to the insured, either on a monthly or annual basis.