First thing that comes to your mind when you buy life insurance product. Now you have protected your family. But have you ever thought which you pay in form of premium is cover your needs. Every product of life insurance you buy differs in protection it guarantees. Some will buy insurance to provide pure protection to family and dependents.
What are insurance plans?
And some people will buy for protection with investment factor to create wealth. Others will buy policy to provide successors benefit. There are many types of life insurance plans. Which offer different kind of guarantees for different events cover during policy term. For example, death, disability or accident of policyholder. Here see below what different types of insurance plans guarantee you.
What is Term Plan?
Term Plan is pure insurance plans. You can cover up to Rs 10 crore or even more. In case of term plan death benefit is guarantee and there is no survival benefit. But in pure term plan you will get sum assured if life assured death. And no benefit is pay if life assured survives in policy term. Check best life insurance policy in India. See Benefits of life insurance
ULIP comprise of both investment and protection component. Also small death benefit is guarantee in unit linked insurance plan. Thus actual death benefit can be higher than small death benefit guarantee. And survival benefits are not guarantee. Check best ULIP insurance plans.
There are sum plans which offer small guarantee on survival as well. For example ULIP pension plans. As fund increases in ULIPs death benefit might also increase. Such increase need not be exactly with inflation. But may provide some hedge against price rises.
In this plan sum assured is guarantee to be pay. Also, bonus is declare every time. It becomes guarantee to be pay on death or maturity. And Death benefit increases with time bonus in traditional plan. But all traditional non participating plans may not have this feature. In case of traditional non-participating plan both survival and death benefit are guarantee.
Most insurance plans also have surrender more benefit to death and survival benefit. For traditional plans small surrender benefit is guarantee. But actual surrender benefit may be higher than small guarantee amount. You can view what are types of Life Insurance?
Thus there is other product category. Where depends on various factors in products. But you will aware that guarantee holds true. And when you fulfil your promise in paying premium on time. Thus for more details see traditional plans.
Finally, check best investment plan with guarantee returns. You can see LIC guarantee income plan review. But for more details check best life insurance policy with high returns. Also check traditional plan vs. ULIP. Thus see guarantee return plan in LIC.