Life insurance is a popularly discussed topic that often gets highlighted during financial debates.
Life Insurance
Although, for many, it is one of the major pillars of their financial security. In fact, its importance can be highlighted by the percentage of insurance penetration increasing from 2.7% to 4.2% in the past couple of years.
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Nowadays, with online insurance becoming increasingly accessible, understanding their different types and respective details has never been easier. This knowledge of different life insurance types can help you find the best deal to buy online.
Let’s understand the types of life insurance policies that you can conveniently explore online.
How Many Types of Life Insurance Are There?
There are several life insurances types from which you can select an ideal depending on your individual needs, goals, and budget. However, to choose one, you must know their details. Here are a few mentioned that are worth exploring:
1. Term Life Insurance Plans
Life insurances that provide coverage for a specified period are known as the policy term. If the policyholder passes away during this period, the insurer pays out a death benefit to the beneficiaries.
It's one of the most affordable life insurance options, offering high coverage at low premiums. Term insurance plans are ideal for individuals looking for pure protection without any investment component.
2. Whole Life Insurance Plans
Out of many life insurance types, whole life plans are quite popular as they offer coverage for the entire lifetime of the insured. In addition, it helps accumulate cash value over time, which later serves as a savings or investment component. The policyholder has the option to withdraw or borrow cash value during their lifetime.
3. Unit Linked Insurance Plans (ULIPs)
Here is a life insurance type that offers the dual benefit. It includes both insurance coverage and investment growth. One part of the premium is allocated towards life insurance. On the other hand, the remaining amount is invested in equity, debt, or hybrid funds as per your risk appetite.
ULIPs provide flexibility to switch between funds and offer the potential for better returns in comparison to traditional insurance plans. They are suitable for individuals willing to take on market risk while enjoying life cover.
4. Money-Back Plans
Money-back plans are also one of the life insurance types that offer periodic payouts at regular intervals during the policy term. This, in turn, provides liquidity to meet one’s financial needs.
In case of the policyholder's demise, a complete assured sum is paid out to the beneficiaries, irrespective of the payouts already received. These plans provide a combination of insurance coverage and liquidity, making them suitable for individuals looking for periodic income along with life protection.
5. Accidental Death Benefit Rider
Accidental death benefit rider provides an additional sum assured to the beneficiaries in case of the policyholder's demise due to an accident. This rider ensures that the policyholder’s family receives extra financial support during challenging times. It complements the base life insurance policy by offering enhanced protection against accidental death, ensuring comprehensive coverage for your family.
6. Endowment Plans
Another plan from different types of life insurance policies is an endowment plan. It basically combines life insurance coverage with savings or investment benefits. Consequently, these policies offer a lump sum payout to the beneficiaries upon the policyholder's demise or maturity of the policy, whichever is earlier.
Endowment plans are suitable for individuals seeking both protection and wealth accumulation. They provide a disciplined approach to saving while ensuring financial security for your family.
Have you Decided Which Life Insurance Type to Buy Online?
Well, the knowledge of different life insurances does streamline the process of choosing which one to buy. Now, when it comes to doing this task online, it is essential to consider their availability, terms, price, and other mentioned conditions. More importantly, consider the reputation of the insurance-providing company.
For instance, Canara HSBC Life Insurance is one of the popular insurance-providing companies with online platforms from where one can explore tailored life insurance types. Whether it is their Individual Savings Plan, Whole Life Insurance Plan, or any other, they all can be found with flexible and affordable premiums.
Browse Canara HSBC Life Insurance’s range of different types of life insurance policies and buy a suitable one today!
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