What are the different types of life insurance in India?

What are the different types of life insurance in India?

There are several types of life insurance policies available in India, including:

1. Term insurance: This is a pure protection policy that provides coverage for a specific period of time (the "term"). If the policyholder dies during the term, the beneficiary receives a death benefit. If the policyholder does not die during the term, the policy expires and no benefit is paid.
2. Whole life insurance: This policy provides coverage for the policyholder's entire life, as long as premiums are paid. It also includes a savings component, which allows the policyholder to build cash value over time.
3. Endowment insurance: This policy combines life insurance with a savings component. It pays a benefit to the beneficiary if the policyholder dies during the policy term, or to the policyholder if they survive to the end of the term.
4. Money back insurance: This policy provides periodic payments to the policyholder during the policy term, in addition to a death benefit paid to the beneficiary if the policyholder dies.
5. Unit-linked insurance plan (ULIP): This policy combines life insurance with investment in mutual funds. The policyholder can choose which funds to invest in and the policy's value is linked to the performance of the underlying investments.
6. Annuity: This policy provides a stream of income to the policyholder for a specified period of time, or for the policyholder's entire life. There are several types of annuities, including immediate annuities, which begin paying out shortly after the policy is purchased, and deferred annuities, which allow the policyholder to save money over time before payments begin.