In­sur­ance Types

Consumer Voice - - Term Insurance -

Con­ven­tional plans

Con­ven­tional plans are mostly sav­ings prod­ucts and give guar­an­tee of sum as­sured and also an an­nual bonus de­pend­ing on the prof­itabil­ity of the com­pany. The in­vest­ment op­tions are with the in­surer and they take a call where to in­vest on the plans avail­able in the mar­ket.

Unit-linked in­sur­ance plans (ULIP)

ULIPs are mar­ket-re­lated and the risk of in­vest­ment is borne by the pol­i­cy­hold­ers. Pol­i­cy­hold­ers have the right to choose the in­vest­ment op­tions. They may in­vest 100 per cent in debt or 100 per cent in eq­uity. ULIPs are con­sid­ered to be quite com­plex and need ex­pert ad­vice be­fore in­vest­ment.

Term in­sur­ance

Term in­sur­ance is the old­est form of in­sur­ance and is the least ex­pen­sive plan to cover the risk of death. Term plan is a no-re­turn plan just like your medi-claim or car in­sur­ance cover. If claim is made within the in­sured pe­riod, the nom­i­nee will get the full sum as­sured; oth­er­wise there is no ma­tu­rity value or cash value for this plan. It pro­vides cov­er­age for a spe­cific pe­riod or term, say 10 to 30 years. Term in­sur­ance plan is a must for a per­son who has de­pen­dents or a fam­ily in which he is the sole earner.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.