Types of Life Insurance Policy:

A. Term Insurance policy
B. Whole life Policy
C. Endowment Policy
D. Money Back policy
E. Annuities and pension

The products offered by life insurance companies are developed and structured around these five policies, or extended or a combination of these policies.

A: Term Life Insurance
Term life insurance policy covers pure risk for a specified period of time. The policy holder get assured sum only if he dies within the policy term. Term life insurance is usually the least expensive form of life coverage. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.

for example, if a person have 5 lac policy for a 15 years ,his family will get this money if he dies within that period .

If the policy holder survives for that period , the insurance company keeps all money paid during the 15 year period. The policy holder will not get any amount.

B: Whole life Policy:
Whole life policy is an insurance cover against death, irrespective of when it happens. In this plan, policy holder pays regular premiums until his death. Money is handed over to his family. Premiums remain level throughout the life of the policy, and the company invests at least a portion of your premiums. Some firms share investment proceeds with policyholders in the form of a dividend. Whole life insurance policies also provide tax-deferred buildup of cash value, payable upon surrender or payment default.

C: Endowment Policy
Endowment policies are the most popular policies in the world of life Insurance. This policy combines the Risk cover with financial savings.

• In this policy assured sum is payable, if the insured survives the policy term. If the insured dies during the tenure of the policy ,the insurance firm has to pay the sum assured as any other pure risk cover.3

• A pure endowment policy is also a form of financial saving, if the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.

D: Money Back Policy
These policies are structured to provide sums required as anticipated expenses like marriage, education, etc over a stipulated period of time. A portion of the assured sum is payable at regular intervals. on survival, the rest of assured sum is payable. Premium in this policy pays for a particular period of time. In case of death, full assured sum is payable to insured.

E: Annuities and pension
In this policy insured gets money in the form of pension at regular intervals.