Human life is subject to risks of death and disability due to natural and
accidental causes. Life Insurance is a financial cover for a contingency linked
with human life, like death, disability, accident, retirement etc and provide
financial protection to the Policyholder’s family in the event of such
happening. Followings are the most common form of Life insurance policies being
offered by insurers in India:
Term Life is pure risk-based life insurance plan which provides
financial protection to the policyholder’s family in the event of
his/her death during the policy period. These policies last for a
specific term of years and the death benefit are paid to the insured
nominee only if the policyholder’s death occurs in the specific
As evident from the name a whole life policy is for the whole life
of an individual. These policies provide long term protection and
both survival and death benefits with possibility of Survival
bonuses in many cases.
An Endowment plan is a combination of term life policy and a pure
endowment plan to form an Endowment Assurance Plan. This provides
both the death benefits in case the insured dies within the policy
period or survival benefits and bonus in case the insured survives
the said period. In Money back form of policy insured is provided
survival benefits at various fixed intervals during the policy term.
A unit linked insurance plan is a fixed term plan which provides a
combination of insurance protection and investment benefits.
Individuals who want more from the insurance than just protection
should opt for this plan.