ULIPs have a lock-in period of 5 years, so you can stay invested over the long term and allow your investment to grow. ULIPs invest in a variety of funds like debt funds, equity funds, or even a mix of both. The retirement benefits offered by the plans can be paid out as a lump sum amount, as periodic payouts, or as a combination of the two.Ī Unit Linked Insurance Plans (ULIPs) is a type of life insurance plan that gives policyholders the benefit of insurance as well as market-linked investments. They are also known as pension plans or annuity plans. In other words, the life cover offered by a whole life insurance plan is generally valid till the policyholder attains 100 years of age.Ī retirement plan is a kind of life insurance policy that helps you take care of your retirement needs. Whole life insurance, as the name implies, is a type of life insurance plan that offers coverage for the whole life of the policyholder. Just like with term plans, the policyholder pays the insurer a premium in return for the benefit of a life cover. And in addition to this, they also possess a savings component. They offer policyholders a life cover for a specified period. Just like with term plans, the policyholder pays the insurer a premium in return for the benefit of a life cover.Savings plans, also known as endowment plans, are just what they sound like. Savings plans, also known as endowment plans offer policyholders a life cover for a specified period. The unique thing about term plans is that they offer a significantly high life cover for much lower premiums, when compared with other kinds of life insurance plans. This type of plan gives you a life cover for a specific term or period, hence the name 'term plan.' In return for the life cover, you need to pay a premium to the life insurance provider. There are different types of life insurance plans and you need to weigh your options before making the purchase.Ī term insurance plan is the simplest kind of life insurance available.

Now Manav’s family is financially protected. This lump-sum of money can be used for paying off the house loan, supporting the kid’s college funds, and the family's expenses. Upon his unfortunate death in the policy term, the insurance company will pay Manav’s family a lump sum amount of money, generally known as a death benefit. If Manav buys a life insurance policy, then he will be committed to pay a small portion of his income as a premium to the insurance company. Scary situation! But wait! How can Manav avoid all these possible scenarios? Only if Manav buys a life insurance policy. The older kid will be deprived of the required college fund for higher education. So the house on loan might be taken away as well this leaves his wife and kids with no shelter and no money to survive. If one unfortunate day Manav passes away, what will happen? His bank balance will be taken by the creditor and the leftover is not enough to repay the house loan. 10 lakhs as bank balance and owes a debt of Rs. Like most Indian families, Manav owns a house on loan, has Rs. Here is Manav, a 50-year-old sole breadwinner of a family with a wife and two beautiful kids- one in college and the other in school. Let’s understand life insurance with a simple example: If you have people in your family that depend on you financially then life insurance is a must-do investment. This cover comes into effect when all life insurance premiums are timely paid. ABSLI Pradhan Mantri Jeevan Jyoti Bima YojanaĪBSLI Group Bima Yojana Plan (Micro Insurance)Ī life insurance policy is a cover that pays a sum of money to the family(declared nominee) in case the policyholder passes away in the policy period.

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