The only expected thing which life offers is death. Sadly, this is the truth! However, with the death of a person it’s not the grief that will overpower the family members. Many times, there are financial constraints which follow along with the death of a person in SBI HRMS.
This is where you need the help of Insurance Policies. They can be defined as legal contracts which are guided by different terms and conditions. The insurer pays a certain amount of money as premium and in turn is offered return money at the time of necessity.
The two types
Life insurances are specifically sub-divided into two categories in the Indian market. One of them is known as Investment policy and the other one as Protection Policy. Let’s take a look at the difference between both the policies.
Protection policies: This type is designed in such a way where the policyholder is offered with lump sum payment during the occurrence of some specified events. The sole purpose of this Insurance is to provide regular protection to the policyholder.
Investment Policies: In this form of policy the capital amount grows by regular or single premiums.
Understanding the types
Besides the categories of the Insurance, there are different types which you need to know before option for the one which suits your requirement and budget. Here is a look at the different form of insurances with specified features.
Whole Life Insurance: This kind of insurance proves helpful in monetary terms if the policyholder dies untimely. The consumer or the policyholder has to pay premium on a yearly basis to get lifelong coverage.
Endowment Plans: During the maturity time or during the death of the insurer a lump sum amount is paid by the Insurance Company. Mostly they also cover the critical and long-term illnesses. It’s a perfect plan for those who are looking forward in having benefit in case of a short career path. It gives a monthly pension to the policyholder through an annuity policy.
Money Back Plans: This policy is suitable for those who want good returns for different purposes in the future. This policy is perfect for those who want the reasonable rate of interest and also savings.
Term Life Insurance: This is a form of protection policy. It offers the nominee with a fixed amount after the death of the policyholder. The amount is given as par the documents which are signed by the policyholder while taking the insurance.
ULIPs: Unit Linked Insurance plans commonly called ULIPs are such policies which offer due insurance coverages for the users. The investment option is open for the customer to select. They are mutual fund and insurance benefits clubbed together.
The number of companies providing insurance policies runs up to twenty-four but there is one company which stands tall among all. Life Insurance Company of India or LIC is still considered as the best company which offers the users with lifelong assurance through their different Insurance policies. However, make sure to read the terms and conditions carefully before purchase.