Types of Life Insurance Plans essential for every Working Professional

In a professional’s life, one of the major things to decide is which life insurance plan to choose for better life coverage and it is not quite simple. Don’t worry, we’ve got you sorted, this article is all about the types of life insurance plans that you can opt for your life safety. So make sure you read the article completely.  

What is a Life Insurance Plan?

The capacity to pay your funeral expenditures and care for those you left behind is one of the most significant advantages of life insurance. This is especially critical if you have a family that relies on your income to make ends meet. According to industry experts, you should buy a life insurance plan that addresses ten times your annual salary. However, that is a figure that not everybody can afford. Make sure to take for not only funeral costs but also everyday living expenditures when calculating the amount of life insurance coverage you require. For better results, you can opt for group life insurance.  

Different Types Of Life Insurance Plans In India

1. Term Life Insurance Plans

It is an entire risk cover insurance with no maturity advantage and solely a death reward. This sort of life insurance provides maximum coverage at a low cost. The goal of term insurance is to provide financial security to the policyholder’s nominees in the event of the policyholder’s untimely death.

Many insurance firms, such as Future Generali India Life Insurance, provide term policies that repay premiums and accumulated bonuses to the life covered at maturity.

 2. Endowment Plans

An endowment plan is made up of two parts: insurance and savings. The plan provides both a death benefit and a maturity benefit, meaning that in the event of death, the sum promised is paid to the nominee or family, or the sum assured amount plus cumulative bonus is paid if the insured lives beyond the term of the policy.

3. Whole Life Insurance Plans

Traditional policies, often known as whole life insurance, cover the life covered up to the age of 100. It comes with both a death and a maturity advantage.

4. Unit linked insurance plans (ULIPs)

ULIPs are a type of insurance that also serves as an investment and a tax-saving strategy, making them a Triple Advantage plan. A portion of the money is utilized to provide life insurance, while the remainder is invested in other schemes such as equity and debt. You may also pick and select which funds to invest in based on your risk tolerance and time horizon. You may determine the returns using a ULIP calculator based on the amount, duration, and period of investment. 

There are so many possibilities! But how do I know which life insurance coverage to buy?

That is one of the benefits of the life insurance policy. Depending on your financial requirements and goals, you have a variety of alternatives to select from. As a result, it is critical not to buy into the hype, ads, or what your peers are buying while purchasing life insurance. Because each person and his or her family have unique demands that necessitate unique answers. The following are some important aspects to consider while purchasing a life insurance policy: number of dependents, life objectives and the amount of money necessary to reach those goals, monthly costs paid by you and your family.  

Always choose the life insurance plan by keeping the inflation factor in mind because it is very necessary for covering your future life coverage.