Types of Life insurance policies.

hey guys welcome to in this blog. we would be covering the topic types of life insurance policies we would be looking after money back plan term plan whole life plan your lips an endowment plan.

Types of life insurance policies

so this blog is necessary because you know insurance is necessary to cover the risk and losses that happen due to due to any uncertainty and when we are talking about life insurance this this becomes more crucial because on your life there are your dependents and the financial problem that can occur in absence of you can be covered easily by taking life insurance policy at very low premium.

so before you are going to purchase any life insurance you must be having proper knowledge about each of the plan available so that you can discuss with your insurance agent with your insurance company and you can tell your requirement and you can know that you are not being misleaded and you are buying the perfect policy for your requirement.

so let's see and understand what exactly life insurances and life insurance can be defined as a contract between the insurance company and the policyholder so yeah exactly it is a contract because the insurance company is bided by the law to pay you under the terms and policies covered in case any uncertain event occurs where you where you lose your life or you are death or on upon the benefit or upon the maturity the benefit has to be provided so here the insurer provides coverage that is the sum of money

to the insured in short means the policy holder insurer is the insurance company who would be providing the coverage and in exchange for a premium so you would be paying the premium as a policyholder as the insured you would be paying the premium after asset maturity period or upon the death so yeah according to the terms and conditions of the policy the insurance company would be

obliged to pay you the coverage amount that is the sum of money upon the maturity period or upon your death as per the the terms and conditions of life insurer his policy which you will be taking now we would be looking after various life insurance policies the first will be term plan then endowment plan money-back plan julep and pension plans so one by one we will be reading about we would be

learning about each of these and and and try to understand the basic difference and so that you can match your requirements with the kind of policy you want for your life coverage so first is term plan now term insurance is a pure risk cover product it pays a benefit only if the policyholder dies during the period for which one is insured so it is a pure risk or pure insurance product because insurance

product is not meant to provide you any benefit it is meant to cover you against any kind of risk or loss so Tom insurance solves that basic purpose if you if you die it would be providing you the benefit if not you want to be provided with any kind of benefit this is the basis of Tom plan which is a pure insurance product it will provide your benefit only if you die because it is a life insurance product and and if you are not the any fear if you didn't die you won't be

provided with any benefit even after the maturity so term life insurance provide life insurance coverage for is the specified term of yours for a specified premium so this is called as term life term life plan because it is for a specified period of time for example from five years to thirty years it can be range depending upon the policy you are taking the insurance company which is providing you so it

depends on the number of years for which you are taking the term plan and you would be paying specified premium which is a very small amount so in term plant you can term plan you can get about two an estimated one crore of coverage amount only by about five hundred rupees of premium per year so this is the small amount of premium which you are paying to a huge coverage amount so it would be

beneficial if you to cover any kind of uncertainity related to your life risk term insurance premiums are generally low because it only covers the risk of death and provides no return so as I said so for example term plan you have taken was for 10 years in that 10 years of time you did not die so you want to be provided with any kind of benefit any kind of coverage you want to be returned with your

premium which you have already paid but if you die in between that we're in the wind between that period you would be provided the whole coverage amount which would be a very huge amount as compared to the premiums you have paid so it is a pure insurance product to cover the life risk if policy holder or insured dies before that specified term is over his beneficiaries receive a payout and if

he survives the term there is no maturity benefit so as I already mentioned only if you dive within that time period you would be provided with the benefit benefit or the or the coverage amount but if you have survived there would be no maturity benefit second is endowment plan now endowment insurance policy provides insurance coverage along with saving feature so here you are this is a kind

of product where you are putting up your money to save also so it's just not an insurance risk cover it providing you a saving option as well some assured and any accrued bonus is paid out at maturity of the plan or if death occurs during the term of policy so if during the term of policy your death is occurring you would be provided your beneficiary I mean you would be provided with the wholesome assured

and any kind of accrued bonus if the company is the declare if the company has declared it is going to pay out to the policyholders that would be provided at maturity of the plan even at the maturity of plan so for example you have taken an endowment plan for 10 years so on maturity after ten years you would be provided with the coverage amount hole as well as any accrued bonus and if you die before in

between that term period then also you would be provided the whole coverage amount and the bonus amount so as we see in the term plan you would you were provided with the benefit only if you died but here even if your death death doesn't occur you are provided with the coverage as well as bonus amount on maturity so it is an endowment plan which is also referred at saving plan but the only thing to keep

in mind here is that because it is providing you're kind of saving option also the premium rates will be higher as compared to the term plan and maybe the coverage will be lower as compared to the term plan which it was providing at the lower premium so see this is our next point premiums are generally higher as compared to the term plans and scare indeed some with a short bonus is provided on maturity so it

makes logic that because you are being provided with guaranteed coverage as well as bonus amount on maturity you would have to pay premiums which are higher as compared to the term plan the maturity period of policy may range from five to thirty years again as we discussed in town plan also in Dorman plan also provides you with variations in the term period which you can choose for so it ranges between

five to thirty years our next is money-back plan so money-back insurance policies are type of insurance policies that provides life coverage and also assures the return of a certain percent of the sum assured as cash payment at regular intervals so if you are looking for an insurance product which can provide you regular cash inflows also so that is money-back plan here you can get a short sum as cash

payment add to at regular period of time so maybe in three months in six months as per you have chosen the plan as for the time period you have chosen you can get the cash payments now this is why money-back plan as is becoming popular in these time because this policy is not just covering your life it is also providing your regular income source now regular payouts made in money back plan are also referred as survival

benefits this is also referred as survival benefits because you are provided with this regular payout and you have survived till this term period so you have you you have not died you have survived and that's why it is called a survival benefit payout the rate of return on this policy is quite low obviously insurance products are not meant to provide you any investment option so the rate of return which

would be provided in any kind of insurance product would be very minimal very low so you must treat that as there as a rest coverage option as a saving option and not as an investment option as a necessity rather than any wealth creation option if then short dies during the term of policy full sum assured is paid out irrespective of survival benefits already paid so here what is happening that you are being

provided with regular cash flows at regular intervals now what happens if you die your in between your rotom period before the maturity so in that case you would be provided with the full coverage amount so you don't have to worried I think you have already been provided with the regular cash flows so that amount would be deducted and you would be not provided enough coverage amount on your debt to

your family members to your dependents to your beneficiaries no it's not that upon your debt you would be provided with the full sum assured according to the policy and Enlil irrespective of the survival benefits that has already been paid to you accrued bonuses are paid on maturity or death as in the case so here also if there is any bonus declared by the company as for the policy so that would be paid on

maturity or upon that as in the case related to the policyholder let's look after unit length insurance plan which is popularly referred as you leap plan so you lip is an insurance plan that combines the insurance protection within meant option here this product was introduced to combine the future of both insurance as well as investment option so many people who are afraid of investing in stock markets and all this

product came to be useful because it was providing you with an in with an investment option along with your insurance and building up the trust so it enables the policyholder to earn market linked returns by investing a portion of the premium money in various proportion in the equity and debt markets so here the premiums which you are paying because you have taken this EULA policy those premium the

proportion the proportion the sum amount of that premium would be invested in the equity and debt market now according to the market fluctuation according to the performance of the market you are the return would be dependent your robe and the return from your insurance policy would be dependent because that would be linked to the market some proportion of your money would be invested in that so

it is providing you coverage by by keeping aside your proportion of money and investing some of the proportion of money in the market so it is providing you with the both option the insurance coverage as well as the investment option the EULA provides both death and maturity benefits to the holder at the time of maturity of the plan the policyholder will receive the value of the fund as on the date since

you lips are linked to the market the proportion is invested in the market the value which the policyholder will be receiving would be the fund value as on the date and the find value will keep on fluctuating so generally you lips provide good returns as compared to other insurance product because other insurance products are made to provide you coverage amount a saving option but didn't meant

was but wasn't designed to provide you any investment return so here you will provide you a good return about 10 to 12 percent depending on the market condition and the only or demerit is that the people does not accept you lives because it is not pure insurance so the coverage amount would be very less the Ridgewood should which should be provided to cover that risk would be very less

however the return would provide it to you would be good and it would be serving as an investment of investment option in the event the policyholder dies during the term of policy the beneficiary will receive either the sum assured or the fund value or both depending on the terms of policy so this would depend on the term and condition of the policy what you will be receiving so before you are going to

take any EULA plan you need to discuss all these things you need to go through the terms and conditions to understand what returns you can get and how this would help in your risk coverage how this will help in getting the returns if you want any now basically it is recommended that you should not purchase any insurance plan as an investment option because insurances majorly to cover the risk in

case of any uncertain events so if you are taking life insurance you should look for high coverage amount which would be good enough to serve your family to serve your dependents with low premium and you should not go for return return etc so whenever you are taking an insurance policy just see that if you are getting good coverage to solve your family if you have to pay lower premiums all these

options are good and you should not focus on getting returns there as it's your choice you can always compare and choose as per your preference any of these plan pension plan retirement plans or pension plans are normally insurance plans to which contributions are made till retirement or for a specified period targeting retirement so these plants are those insurance plans which are generally targeted

towards your retirement to solve your retirement so that you can get the fixed cash flows after you retire as an Matiz all pension products are required to have defined a short benefit in the form of guaranteed return on the premiums paid so here you will be getting again assured and guaranteed return on the premiums you have been paying one third of the corpus accumulated can be with 1az lump sham the

remaining can be used to buy enmity that will make monthly payments to the holder after retirement so you are allowed to use one third of the corpus accumulated so of whatever premium you have paid one third of that corpus along with interest can be withdrawn as lump sum and the remaining you can use that to buy an witty and witty you should do prefer that because after your retiree retirement it will

serve as a constant cash flow to us of your life for you to serve your life expenses so it's good to take tension plan which can help you out in here in solving your retirement needs thank you for watching this was all for this video do like and share my video subscribe to