What are the Different Kinds of Life Insurance Policies

What are the Different Kinds of Life Insurance Policies

August 01, 2012 Wednesday

Kinds of Life Insurance Policies :

Term Insurance


You can choose to have protection for a set period of time with Term Insurance. In the event of death or Total and Permanent Disability (if the benefit is offered), your dependants will be paid a benefit. In Term Insurance, no benefit is normally payable if the life assured survives the term.

Whole Life Insurance:


With whole life insurance, you are guaranteed lifelong protection. Whole life insurance pays out a death benefit so you can be assured that your family is protected against financial loss that can happen after your death. It is also an ideal way of creating an estate for your heirs as an inheritance.

Endowment Policy


An Endowment Policy is a savings linked insurance policy with a specific maturity date. Should an unfortunate event by way of death or disability occur to you during the period, the Sum Assured will be paid to your beneficiaries. On your surviving the term, the maturity proceeds on the policy become payable.

Money back plans or cash back plans


Under this plan, certain percent of the sum assured is returned to the insured person periodically as survival benefit. On the expiry of the term, the balance amount is paid as maturity value. The life risk may be covered for the full sum assured during the term of the policy irrespective of the survival benefits paid.

Children Policies


These types of policies are taken on the life of the parent/children for the benefit of the child. By such policy the parent can plan to get funds when the child attains various stages in life. Some insurers offer waiver of premiums in case of unfortunate death of the parent/proposer during the term of the policy.

Annuity (Pension) Plans


When an employee retires he no longer gets his salary while his need for a regular income continues. Retirement benefits like Provident Fund and gratuity are paid in lump sum which are often spent too quickly or not invested prudently with the result that the employee finds himself without regular income in his post - retirement days. Pension is therefore an ideal method of retirement provision because the benefit is in the form of regular income. It is wise to provide for old age, when we have regular income during our earning period to take care of rainy days. Financial independence during old age is a must for everybody.

There are two types of annuities (pension plans)

Immediate Annuity


In case of immediate Annuity, the Annuity payment from the Insurance Company starts immediately. Purchase price (premium) for immediate Annuity is to be paid in Iumpsum in one installment only.

Deferred Annuity


Under deferred Annuity policy, the person pays regular contributions to the Insurance Company, till the vesting age/vesting date. He has the option to pay as single premium also. The fund will accumulate with interest and fund will be available on the vesting date. The insurance company will take care of the investment of funds and the policyholder has the option to encash 1/3rd of this corpus fund on the vesting age / vesting date tax free. The balance amount of 2/3rd of the fund will be utilized for purchase of Annuity (pension) to the Annuitant.

Unit Linked Insurance Policy

Unit Linked Insurance Policies (ULIPs) offer a combination of investment and protection and allow you the flexibility and choice on how your premiums are invested. . IN UNIT LINKED PLANS, THE INVESTMENT RISK PORTFOLIO IS BORNE BY YOU AS YOU ARE THE INVESTOR Typically, the policy will provide you with a choice of funds in which you may invest. You also have the flexibility to switch between different funds during the life of the policy. The value of a ULIP is linked to the prevailing value of units you have invested in the fund, which in turn depends on the fund's performance. In the event of death or permanent disability, the policy will provide the Sum Assured (to the extent you are covered) so that you can take comfort in knowing that your family is protected from sudden financial loss. A ULIP has varying degrees of risk and rewards. There are various charges applicable for Unit Linked Policies and the balance amount out of the premium is only invested in the fund/funds chosen by you. It is important to ask your insurer or agent or broker questions to understand the sum total of charges that you have to incur. It is important to assess your risk appetite and investment horizon before deciding to buy a ULIP policy. You must also read the terms and conditions of the policy carefully to understand the features of the policy including the lock-in period, surrender value, surrender charges etc.
All the types of plans mentioned above can be offered under ULIP plans.

 
 
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Comments

"Intra day trading can be done only by experts in this field who really knows the pulse of the market. Otherwise you may loose more money in short term."

- Thomas, 27th August 2009, Thursday

"Can you explain the terminologies used in trading,.What are futures trading? Thanks Sunith"

- Sunith, 28th August 2009, Friday

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- BIMALENDU MISHRA, 28th August 2009, Friday

"If you have a Demat account do you need to be specially activated for Intraday trading?"

- E K Ramachandran, 28th August 2009, Friday

"Intra day trading can be done only by experts in this field who really knows the pulse of the market. Otherwise you may loose more money in short term."

- Thomas, 27th August 2009, Thursday

"Can you explain the terminologies used in trading,.What are futures trading? Thanks Sunith"

- Sunith, 28th August 2009, Friday

"according to your article if it might be loss then why should i be involved in this practice"

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- E K Ramachandran, 28th August 2009, Friday

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- Amitav, 4th September 2009, Friday

"how much amount requird for intraday trading. "

- Ajay Mishra, 4th September 2009, Friday

"i have already a demat a/c. how do i get tips for day trading from you?"

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"Hi Herry, Day trading tutor for you. Happy trading. Regds/Jayesh"

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"I want to do paper trading I want to do intraday trading"

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" i want to know how can i make carrrer in the stock broking and want to invest invest money in this prospective market. can i expect some guideline from ur side. Already iam doing intraday first i gain some profit but after nov 2007 i face a loss. then only i understand Iam doing wrong method Now i dont do trading but ican start very soon before that i know all the procedures and how do trade in get profit.I need information about the delivery stocks also. i m keen in doing intra day trading . help me out the best possible way u can."

- S S A KIRMANI, 6th September 2009, Sunday

"hai i have demat account in religare securities please give me a suggetion to buy a share "

- vijaykumar ML, 6th September 2009, Sunday

"good midcap stocks for intraday trading"

- monika handa, 6th September 2009, Sunday

"what should be the financial backup for intraday trading"

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"Good Article. Do you open your DEMAT A/C.What charges. Do you have office in Noida."

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"Very useful articel for the beginners who like to start trading in market... please send me some more articles on intra day trading."

- PRUTHVIRAJ, 7th September 2009, Monday

"good"

- pravendra sharma, 8th September 2009, Tuesday

"I work in a Bank and also i'm a fresher towards intra day trading. I would appreciate a lot if some one cn help me with some strategies or refer me to some websites for tips and some well know strategies. Your article is good for a fresher who doesn't know and basic facts frankly speaking but can any expert help me with few ideas. Hope some one will reply. Thanks & regards Pralhad Jana"

- Pralhad Jana, 8th September 2009, Tuesday

"nice "

- shaji, 11th September 2009, Friday

"what is call and put"

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"very useful article"

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"opening a demat acct & intra day trading with daily income @rs 10,00/- deposit."

- PC SHEKAR, 20th September 2009, Sunday

"I have opend a demat sharekhan account. I would like to learn the tricks of the trade -both intraday and short term investments. Please guide me in what to invest, for how long, when to sell, etc Thanks and regards Mamatha"

- Mamatha Esteves, 24th September 2009, Thursday

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"i want may be expert for intraday trading.How i learnt intra day trading for stock trading."

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"nifty tips"

- ANIMESH RAKSHIT, 28th February 2011, Monday

"pls advoce me on intraday trading from the basics as i am going to start"

- sandhya, 22nd March 2011, Tuesday

"please give me a information on best intra day tips provider of india"

- venkatesha, 31st May 2011, Tuesday

"It is useful so pls send me more mails n tips for intraday trading."

- mukesh, 13th June 2011, Monday

"please send information of day trading"

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"Good one"

- Mahesh J, 30th November 2011, Wednesday

"i really wanna be good at intraday trading. please HELP!!!"

- shashank, 25th February 2012, Saturday

"How much commission for the brokers to interday on the under law of SEBI? Also long term?"

- Sundararaj, 29th March 2012, Thursday

"anybody knows about the Trading courses a Learning Centre called Makeprofit in Delhi is offering? Went to their free seminar was nice but cant decide whether to go to their paid seminars. They say they can teach trading in 5 days :) I never traded before :( can anyone help me decide?"

- Ashok, 1st May 2012, Tuesday
 
 
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