Types and Importance of Insurance Policies in India

Types and Importance of Insurance Policies in India

When compared to other foreign developed countries what India has is very less but still in terms of insurance facilities and claims. These types will depend on the objectives and our requirement. Life Insurance is purely safe and secured. Investment is will help in financial planning also. Different Types of Insurance Policies that are available in India and its objectives are also provided below for reference.

  • Term Planned Insurance is basic type of insurance which there will not any kind of special objective. Profit corner is very less in this type of insurance. Premiums will be cheaper when compared to other types of provident funds. Depending on our premium we have to pay once in a month or once in three months and risk involved is also very less for this type of insurance.
  • Whole Life Insurance, name itself indicated that it will cover whole life. The main advantage of this insurance policy is we don’t have to think of other policy as it exists our entire life. All we have to do is we have to pay some amount of regular payments throughout life and later that will be paid to our nominee.
  • Endowment Insurance Plan is somewhat different from other insurance plans. Profits issued are also high as the premium amount is high for Endowment insurance plan. Maturity and death will have same scenario and profits will show best outcome for out high premiums.
  • Money Back Policy is best type as most of us will prefer as we have money back facility. There will be some amount of premium that we have to pay for every month or for every three months. Depending on this premium amounts we will get some amount back for regular intervals.

 



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