6 Best Types of Life Insurance your Family

Life insurance is among the most sought-after insurance product on the marketplace today. It’s a must-have in the financial portfolio of every person. It covers the policy holder for a certain amount guaranteed in exchange for a monthly premium (it could be monthly or quarterly) for a specific time frame.

The policyholder’s nominees will receive the assured amount when there is an unexpected loss of the insured within the period of coverage. A pre-determined sum assured can also be paid to the policyholder at the time of maturity of the policy. Generally speaking, endowment policies and Unit-linked insurance plans offer an opportunity to earn a maturity benefit.

However, beyond the basic commonality of a life insurance policy for a lump sum, The various kinds offered on the market differ greatly in regards to their use and advantages. Let’s take examine them to determine which one is best for you.

Life insurance types

Below are the most common kinds of life insurance plans which you can get in India:

1.Term Life Insurance Policy

Term insurance is among the most sought-after life insurance in the United States. It can be purchased for a time-bound period or term, hence the name.
Contrary to other plans for life insurance that offer maturity benefits, a term insurance policy doesn’t offer maturity benefits. However, it provides a substantial amount of money guaranteed at a low cost. It’s a fantastic asset to ensure the financial protection of your family members during your absence.

If the policyholder is not living up to the period, there aren’t any benefits. In this case, you can decide to claim a return of your premium. A variety of insurance firms offer this option. This allows you to claim reimbursement of the premiums you’ve paid up to the policy’s expiration. In this way, it could make your term plan into a savings plan, however, without adding value to the savings.

You can use the life insurance calculator to estimate the premium you could receive at the conclusion.

Life Insurance your Family

2. Whole Life Insurance

A whole life insurance plan gives you coverage throughout your life and not for the same amount of years as with term insurance. You are given two options, Participating and non-participating policies. You can pick the plan that is best suited to your level of risk.

The cost of an insurance plan that is a participant will be higher than its non-participating version. The former, however, lets you receive dividends in regular intervals. The dividends continue to increase with each passing day.

It also allows you to take this money out whenever you need to. You can also get loans against this deposit. However, the death benefit will be affected if you die before you can pay back the loan. However, it will not cause any hardship to your family members.

3. Endowment plan

The Endowment policy lets you receive a payout even if you outlive your insurance plan due to its maturity benefit. It blends elements of life insurance and savings. If the policyholder dies before the plan expires, the nominee is entitled to the amount assured, together with the bonus and the earnings the policyholder made. The reward amount will depend on the amount of time the policyholder was alive.

4. ULIP (Unit-Linked Insurance Plan)

ULIP is the most well-known among all the kinds of life insurance plans. It safeguards your existence and allows you to build wealth while you’re at it. It’s the broadest type of insurance protection you could have.

Your insurance company uses a part of your premium to cover you. The remaining amount is put into the market and in your chosen fund. Individuals can select the coverage they require and the kind of fund they want to place their money in.

You can withdraw a portion of the funds within the lock-in duration of your policy. If you believe that your investment is not doing well, you can transfer it to a different fund, which is free of charge.

When you select the ULIP, the longer the period, the more expensive the return on your investment.

5. Insurance for children

A Child Insurance Policy is designed to safeguard the financial future of the insured’s child in the event of the person’s sudden death. It is essential to put money into your child’s future to ensure they can live a long and healthy life even in your absence. You must ensure that you pick the right plan that will allow your child to reap the most benefits from it.

6. Coverage for insurance with money-back

Choose this plan, and you’ll receive a share of the money you are that you are guaranteed to receive every few months. This is an endowment scheme that offers growing benefits in liquidity. The cash payout is distributed over time. It was designed to meet your financial goals for the near future.

It could be an added benefit to your monthly or annual income as specified within the plan. Additionally, the payments you receive are tax-free under section 10(10D)(*) of the Income Tax Act of 1961. This alone makes it the most profitable investment you could make. It is a great addition to the insurance you permit those you love to get. It also allows you to pay for your insurance whenever you like.


Life insurance policies are customizable in many ways to meet your specific requirements. This list should guide you in deciding on the type of insurance policy you need, and then you can go deeper thoroughly, conduct thorough research, and finally take the best insurance for you and your loved ones.

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