Life Insurance Types

Life Insurance Types

list is not exhastive.

Whole life plan	You pay the premium till you retire or till the term of the policy. Your family will get money ONLY after you die. You MUST DIE to get back the money.
Endowment	Insurance company collect premium form the insured for the certain period of time like 15, 20, 25, 30 years. If you die within that term, the company will pay huge money to your family. If you don’t die within that term, company will return the premium you paid + some interest or bonus on it. So, you DONOT NEED TO DIE to get back the money.
Term Plan	You keep paying premium for given period (5,10,20 etc. years) If you die within that period, your family gets huge money. But if you don’t die within that period, you will not get a single penny from the company. So, you MUST DIE to get back the money. Good part- Term Plans have cheaper premium than other plans.
ULIP(Unit Linked Insurance Policy)	You pay regular premium to the company. Company invests it in Debt and Equity markets. The profit generated by this investment, will be given to you no matter you die or not. Thus you get the benefit of risk cover as well as the investment gains. You DONOT NEED TO DIE to get back the money. They pay higher return than Endowment.