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TERM PLAN Term Insurance is also known as Pure Risk Insurance. This covers the
risk of the death of the individual only. One has to pay premium upto a certain period of time or term,
in case
insured dies the whole sum assured would be payable to the family of the
insured. There is no return involved if nothing happens to the
individual. This is beneficial to an individual of any age as it provides for the
highest sum insured at the lowest possible rates. ENDOWMENT PLAN This is a popular insurance
plan which not only provides insurance cover
for the family in the event of premature death but also ensures a lump
sum payment after the prefixed term along with bonus & final additional
bonus. This is useful for any individual who wishes to plan for a future event
in his life like the marriage of his children or for their higher
studies or for any other contingency. Here the individual pays for a certain period and gets the returns at
the end of the determined period. In case of a unit linked plan he can
withdraw the money anytime during the duration of his policy also.
WHOLE LIFE PLAN This plan provides protection against the risk of living too long. Under
this plan the individual pays the premium upto a certain period of time
and gets the maturity benefits on the completion of the term. After
getting the maturity benefits the life of the insured is covered upto
the age of 70 to 99 varying from company to company. This policy is beneficial for an individual who wants to protect himself
in his older days and also wants to leave some asset behind for his
spouse or his children on his demise.
MONEY BACK PLAN A money back policy is also known as an anticipated endowment policy.
The salient feature of a money back policy is that it provides for a
cover for a limited period which normally extends to a maximum of 25
years. The insurance company pays back a certain percentage of the sum
assured every 5 years (or 4 also in case of certain companies) depending
on the duration of the coverage period. In addition to this on the
maturity of the policy the sum assured and bonus is payable. A money back plan is very suitable for an individual who is just
beginning his career or his family as it provides for the periodical
availability of money to the individual.
CHILDREN PLAN Child insurance policies are the most prevalent form of insurance covers
taken by the parents to provide for the secured future of their
children. Child insurance policy coverage can be taken in any of the following
forms:
Where The Parents, paying The Premium In such a case the insured person is the child and the parents pay the
premium. In some cases the parents choose a waiver of premium benefit
rider on their life in which case on the death of the paying parent the
insurance company pays the premium for the remaining period, thus
ensuring continuation of the desired benefits to the insured.
This policy is specifically very beneficial for children when they are
insured for a long duration with a limited paying period as the policy
acquires a high value over a long period of time & serves as an asset
for the child’s future.
Where The Child Is The Beneficiary
In this case the life insured is that of the parent and the child is the
beneficiary. In this case the child gives the claim money in the
unfortunate death of the parent.
This policy is useful for parents who want to provide for their child’s
future to protect him against any eventuality.
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