• Endowment Policy: This policy covers risk for a specified
period, at the end of which the sum assured is paid back to the
policyholder, along with the bonus accumulated during the term
of the policy. It is this feature - the payment of endowment to
the policyholder when the policy's term is complete - that
rightly accounts for the popularity of endowment policies.
• Whole Life Policy: This policy runs as long as the
policyholder is alive. In other words, risk is covered for the
entire life of the policyholder. The whole life policy amount
and bonus are payable only to the nominee of the policy on the
death of the policyholder. The policyholder is not entitled to
any money during his or her own lifetime – there is no survival
benefit.
• Term Life Policy: This policy covers risk only during the
selected term period. If policyholder survives the term, the
risk cover comes to an end. A term policy is designed to meet
the needs of people who are initially unable to pay the larger
premium required for a whole life or an endowment assurance
policy. No surrender, loan or paid-up values are granted under
these policies because reserves are not accumulated. On the
usual term assurance plans, accident and/or disability benefits
are not granted.
• Money Back Policies: Unlike endowment insurance policies,
where the survival benefits are payable at the end of the
endowment period, money-back policies provide for periodic
payments of partial survival benefits during the term of the
policy, as long as the policyholder is alive. An important
feature of this type of policies is that in the event of death
at any time within the policy term, the death claim comprises
the full sum assured, without deduction of any of the survival
benefit amounts, which may have already been paid as money-back
components. Similarly, the bonus is also calculated on the full
sum assured.
• Joint Life Policies: This policy is similar to endowment
policies offering maturity benefits to the policyholders, apart
from covering risks like all life insurance policies. But joint
life policies are categorized separately as they cover two lives
simultaneously, thus offering a unique advantage in some cases,
notably, for a married couple or for partners in a business
firm.
• Children's Insurance Policies: This policy includes those
through which parents or legal guardians can provide for life
insurance for their child from birth. The risk cover commences
from the child attaining the age of 12/17/18/21 (known as the
Date of Risk), and will vest itself on the child upon his or her
attaining adulthood at the completion of 21 years, if the case
demands so. Until the child attains adulthood, the parents are
owners of the policy and have to pay the premium periodically.
• Pension Plan or Annuities: An annuity is an investment that
you make, either as a single lumpsum amount or through
installments paid over a some years, in return for which you
receive a specific sum every year, every half-year or every
month, either for life or for a fixed number of years. After the
death of the individual, or after the fixed annuity period
expires for annuity payments, the invested annuity fund is
refunded, perhaps along with a small addition, calculated at
that time. Annuities differ from all the other forms of life
insurance discussed so far in one fundamental way – an annuity
does not provide any life insurance cover but, instead, offers a
guaranteed income either for life or a certain period.
• Women's Policy: Women's Policy provides funds for women in
times of needs like education, marriage or sickness, with
Guaranteed and Loyalty Additions during the policy term and
after maturity. At present, the sole women's policy available in
the market in Jeevan Sneha from LIC.
• Group Insurance: Group Insurance offers life insurance
protection under group policies to various groups such as
employers – employees, professionals, co-operatives, and weaker
sections of society. It also provides insurance coverage for
people in certain approved occupations at the lowest possible
premium cost. Besides providing insurance coverage, it also
offers group schemes to employers that allow the funding of the
gratuity and pension liabilities of the employers. |