Life insurance plans for your family are a pivotal part of financial planning. Every policy has its benefits. There is even life insurance for NRIs because the unpredictability of life can astound you at any second. Therefore, you need to choose the life insurance plans that work best for you.
The different life insurance plans
Ages ago, life insurance plans were about paying death benefits if you passed away during the tenure of the policy. As times have changed, life insurance plans have also evolved to better meet the needs of the current generation. Now, not only can you secure the future of your loved ones with the death benefit, but you can also receive maturity benefits as a reward for living a healthy life when your policy matures. You can also set up life insurance plans that specifically benefit your kids or payout to secure your golden years. You can even invest in the capital market with the right policy.
Here are the different types of life insurance plans and the benefits they offer:
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Term Insurance Plans –
It is one of the simplest life insurance plans that are very affordable due to the low rates of premium and the option to choose both short and long-term tenures. In case of premature death within the tenure of the policy, your beneficiaries will receive the death benefit. You can also opt for the return of premium riders to receive the premiums you paid when the plan matures if you survive the tenure of your policy.
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Endowment plans –
Endowment plans are excellent means to build a corpus and secure the future of your loved ones with the sum assured. Your beneficiaries receive the death benefit in case of untimely demise, but if you survive the tenure of the policy, you receive a lump sum amount as a maturity benefit. You can use the money to circumvent any financial setbacks or opt for another life insurance policy.
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Money-back plans –
Apart from the general benefits of life insurance plans, money-back policies offer the option for you to receive parts of your premiums at regular intervals during the tenure of the plan. You can set a time frame, and during those intervals, the insurance provider will make payouts to you. If you survive the tenure of your policy, then you receive the remaining sum paid towards premiums as a maturity benefit. However, if you meet an untimely demise during the tenure of your policy, then the insurance provider still pays the entire sum assured as the death benefit.
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Child-oriented life insurance plans –
As parents, it is hard not to worry about the future of your kids when you’re not around. The Child-oriented life insurance plans are designed to help secure the future of your children when the plan matures. The maturity benefit is paid to the child so they can choose how to invest it to further their goals. Additionally, if you meet a premature death in some child-oriented life insurance plans, the premium is waived to reduce the stress on your children, and they still get to enjoy the benefits of the sum assured.
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Retirement plans –
You can start planning for your golden years with Pension plans. These policies can pay you a lump sum amount upon retirement or pay a monthly pension to sustain yourself in your old age.
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ULIPs –
Finally, the most profitable for the financial planners are the ULIPs. The Unit-linked Insurance Plans help you with the standard benefits such as the death benefit of paying the sum assured in case of your demise and the maturity benefit if you survive the tenure, but there’s more.
ULIps also allows you to invest in the capital market and make profits in real-time during your life. You can choose to invest in risk-free instruments or market-linked instruments based on your risk appetite. You can withdraw the profits and bonuses in times of emergency or as regular payouts.
These policies are also applicable as life insurance for NRIs. So, even if you don’t live in India but your family or loved ones do, and you want to protect their financial future, you can choose the type of life insurance plan that works great for you.
How do you choose the right life insurance plans?
When choosing the right life insurance plan for you, you need to consider your circumstances and expectations. Here are a few points to keep in mind:
- If you want life insurance plans that pay a lumpsum amount of money to help your loved ones after your premature death but with a reasonable rate of premium, you can opt for term life insurance.
- If you want to build a corpus fund while building a habit of saving money, with an added agenda that your family’s future will be secured in case of premature death, then endowment plans are better options. If you survive the tenure, you have a lumpsum amount in the form of maturity benefit.
- If you want to use your life insurance plans to secure the future of your loved ones and still be able to access the money you invested whenever required, then you can go for money-back plans.
- If you want to develop a habit of investing money in the capital market and learning how to make profits while securing your family’s future with a sufficient sum assured, ULIPs are the plans for you.
- If you have a child, opt for child-oriented policies with other life insurance policies.
- To glide through your golden years in glory, you can set up pension plans.
- If you are an NRI with loved ones in India, you can choose endowment plans, term plans, or even ULIPs as life insurance for NRIs.
- As Non-resident Indians, if you have children in India while you work abroad, you can also opt for the child-oriented life insurance for NRIs. That way your kids will be protected no matter the circumstances.
Evaluate your situation, including how much premium you can pay comfortably to choose the right life insurance plans for you.
Conclusion
Life insurance can be a savior for your loved ones when they lose you to premature demise. However, they can also serve as excellent savings plans and help prepare for financial setbacks during your life. Therefore, take some time to evaluate your needs and those of your loved ones and choose the life insurance plans that work specifically for you. Contact Us for more details.