Types of life insurance in Hindi Life insurance is seen as an investment plan. Which is used to save and increase money for the future. Along with this, many people also use it to save tax. Because the government also gives exemption in tax on many types of life insurance policies, there are 2 big advantages of investing through life insurance , the first advantage is that it allows you to save money for the future and increase it. It also gives you a comprehensive life coverage for a fixed time frame period.
Life insurance plans mainly provide opportunities to make money in 2 types, first Unit Linked Insurance Plans or ULIP, it depends on the performance of the market, if the market behavior is good and it grows at a fast pace then take the policy. The one also gets good returns but the risk is high in this and the second is the traditional endowment plan which offers you a fixed return in a limited period of time. For this , term insurance is also taken in life insurance which is Provides only life cover covert does not get any return to the policy holder on maturity.
Types of Life Insurance
• Term Insurance Term Insurance
• Endowment Plan Endowment Plan
• Unit Linked Insurance Plans ULIP Unit Linked Insurance Plans
• Money Back Policy Money Back Policy
Term Insurance – In a term insurance policy , only the person getting life insurance gets a fixed amount of insurance on his death, to the member of the family nominated by him, in other words only life insurance ( Life insurance cover is given, apart from this, there is no return and benefit of any kind. Term insurance policy is cheaper than other insurance policies and no part of premium or premium paid is invested in it.
Endowment Plan – The main difference between endowment plan and term insurance is that in endowment plan, when the policy matures in the policy, you get the return and bonus on it according to the policy. Depends on the investment scheme as per the policy. Linked bonus is declared by the company on completion of one year period. According to this plan, a low investment is made on the balance amount after deducting the tax and expenses of the investment and the return received by this is given to the insured.
Unit Linked Insurance Plans (ULIP) – Unit Linked Insurance Plans commonly referred to as Unit Linked Insurance Plans are a type of coverage plan that provides coverage in which the premium is paid by the investor. The money is kept in the stock market. Each ULIP has a separate fund in which they invest. Individuals, who invest in a best investment plan, get a certain number of units of the fund. These investments are based on the correlation of the fund value of the funds in which they are investing and the premiums the investors have put in .
Money Back Policy – In Money Back Policy, some part of the policy is invested in liquid assets and others are kept under cover like an insurance regulator. With this, a bonus is received on the amount invested and the risk is also reduced, which makes life insurance more attractive.
In all these life insurance, you can take any one according to you, the Government of India also gives tax exemption on all these plans, so we can say that the benefits in terms of life insurance tax are also slow.