A life insurance plan is basically a legal agreement between an applicant and the insurance provider to pay a lump-sum amount of money to the nominee at the demise of the policyholder or any other eventuality mentioned in the agreement. The insurance provider makes the payment as per the conditions mentioned in this agreement or life insurance plan. To get these benefits, the policyholder pays a fixed amount as premium to the insurer at regular intervals.
Types of Life Insurance Plans Available
There are various types of best life insurance plans available in the insurance market to cater to different requirements of different policyholders. Below mentioned is the list of different types of life insurance plans:
- Term Insurance: This is one of the most affordable life insurance plans available in the insurance industry. Under this type of plan, the beneficiary gets death insurance only when the insured dies within the term of the policy. In return, the policyholder pays the premiums to the insurance provider. A term insurance policy does not offer any kind of survivor benefit.
- Endowment Plan: Under this type of life insurance policy, an insured gets a combination of life cover and savings. In this policy, the insurer pays a fixed amount either on the maturity of the policy or death of the policyholder. Most of the times, an endowment plan has a duration of 10, 15, 20 years.
- Whole Life Insurance Plan: As the name of this plan says, it provides insurance coverage for the whole life of the policyholder. Here, the beneficiary gets the lump-sum amount for sure after the death of the policyholder because this plan covers the whole life. These plans are available at high premium rates.
- Unit Linked Insurance Plan: These plans are more commonly known as ULIPs wherein a policyholder not only gets life cover but his/her money is invested in the money market. Under this plan, the premium given by the policyholder is divided into two parts. The first part is given for life insurance coverage, whereas the second part is invested in the money market according to the choice of the insured. At the time of the demise of the policyholder, the sum assured with invested amount is given to the nominee. In case of maturity of the plan, then the specified amount along with the invested amount is given to the policyholder.
- Money Back Plan: This is the plan for those who require both protection and some amount during the policy tenure for meeting his/her needs. In this life insurance policy, the insurance company pays a lump sum amount on the death of the policyholder and some specific amount is given at specific intervals such as 5 years or 10 years. The premiums of these plans are also high.
- Child Plan: With increasing demand from life, one can protect the future of his/her child by taking such plans. Under a child plan, a lump-sum amount is given for higher education or marriage of the child. The child gets the amount after reaching a certain age.
- Retirement Policy: This is one of those life insurance plans that offer protection to both the policyholder and his/her family. These plans provide financial protection at the time when one becomes unable to earn.
Top 5 Life Insurance Plans:
The aforementioned were the types of life insurance plans available in India; here we are going to discuss some of the top life insurance policies offered by different insurance providers:
1. LIC New Jeevan Anand: One of the popular life insurance providers in India is LIC and New Jeevan Anand is one of its popular plans. This plan is an endowment plan wherein one gets the benefits of life insurance as well as savings. Some of the salient features of this plan is:
- It is a participating endowment whole life traditional insurance policy.
- This plan also provides the option of premium payment regularly to the policyholder.
- Tax benefits are also provided to the policyholder for paying the premiums and for claim settlement under the Income Tax Act’s Section 80C and 10D.
- On survival of the policyholder till the end of the term of the policy, the maturity benefit is paid to the insured and the plan remains in force.
- The nominee also gets the death benefit on the death of the policyholder.
2. SBI eShield Plan: If a robust life insurance plan is the choice of an applicant, then this plan is best suited for him/her. It is a non-participating life insurance plan that falls in the category of the pure term plan. The insurance coverage provided under this plan is really high and the premium is affordable. Some of the features of this policy are:
- The plan is a pure term insurance plan.
- The plan provides four protection variants:
- Level Cover
- Increasing Cover
- Level Cover with Accidental Death Benefit
- Increasing Cover with Accidental Death Benefit
3. HDFC SL Crest: Basically, this is a Unit-Linked Insurance Plan (ULIP) that enables the policyholder to achieve his/her investment goals in approximately 10 years. Some of the unique features of this plan are:
- This Unit Linked Insurance Plan has limited pay premium payment option.
- The plan provides four fund investment options:
- Opportunities Fund
- Blue Chip Fund
- Income Fund
- Balanced Fund
- The premium of this plan does not have any upper limit.
- The plan also offers flexibility to select the sum assured.
- The plan provides the facility of EMI to those who have HDFC’s credit card.
4. Aegon Life iTerm Plan: It is a pure term life insurance plan that provides lump-sum payout or/and regular income to the beneficiary in case of death of the policyholder. Some of the key features of this plan are:
- This plan offers inbuilt terminal illness cover.
- The plan provides an option to increase the life cover as per different life stage requirements.
- Provides the option of life cover till the age of 80 years.
- An insured has many rider options against critical illness, disability, and accidental death.
- Non-smokers and females get this plan at lower premium rates.
5. SBI Shubh Nivesh Plan: It is a participating endowment plan that provides various advantages for the wealthy and secure feature. As an endowment plan, this life insurance policy provides whole life cover. Some of the best features of this plan are:
- This plan provides three coverage options to choose from:
- Endowment Option
- Endowment Option with Whole Life Option
- Differed Maturity Payment Option
- This plan provides both single and regular premium payment option.
Summing it Up!
These are some of the top life insurance plans provided by different life insurance providers. However, in order to select the most suitable plan, one may get confused. For such situations, it is recommended to compare different life insurance policies online on a reliable insurance web aggregator. After asking a few questions, a god insurance web aggregator suggests most preferred plan(s).