April 16, 2025
A family life insurance plan is a type of life insurance plan that offers financial security to policyholders' family members in the event of their death. The policyholder pays a certain amount of premium at fixed intervals of time. The insurance company pays the beneficiaries the amount insured on the insured event, such as death or a benefit defined at the maturity of the plan. Life Insurance is a contract signed between the policyholder, i.e., an individual, & a life insurance company, i.e., the insurance provider.
Provided are the types of Life Insurance plans:
A term insurance plan is a type of life insurance plan that includes life coverage and ensures financial protection for the policyholder’s family members. The beneficiaries will receive the life coverage as death benefits, which will include a predetermined amount in case of the sudden demise of the policyholder.
This plan provides financial security to the family members of a policyholder at an affordable premium for a definite time period. In case the insured dies during the policy tenure, the nominee gets the death benefit in exchange for the premium paid.
A retirement plan is considered to be the best investment plan that helps individuals post-retirement to build their pension fund. These plans are low risk, with a regular flow & a pre-fixed amount of income that would be received post-retirement. There are many different pension plans available in India depending on the varied factors, such as retirement requirements, financial goals, risk tolerance, & personal preferences.
One can also save by investing money either through regular payments or a lump sum over a period of time. These pension plans provide an assurance of a stable income during retirement years, ensuring financial security.
A child insurance plan takes care of the financial future of a child during unforeseen circumstances. The funds accumulated throughout the policy tenure will be used to bear expenses related to children's education, marriage, health, etc. Under this plan, parents accumulate funds for their children till they attain the age of 18 years. Once the age of 18 is achieved, the corpus can be claimed either in full or in instalments, which will then be used for the betterment of your child.This plan assures the financial security of a child in case of the sudden demise of the parents, providing financial security to achieve their objectives.
A Money Back Policy is a type of life insurance plan that offers the dual benefit of savings & protection. Under this plan, the policyholder receives returns at a regular interval during the complete policy tenure. This plan provides life coverage, which offers financial security in the case of an unfortunate event.
Under this plan, a specific percentage or amount of the sum assured is paid back to the policyholder at a regular interval of time. If the policyholder survives the policy tenure, he/ she will be assured of the remaining amount of the sum. &, if the policyholder dies during the policy tenure, the full amount of the sum assured is paid back to the nominee, irrespective of the fact that the survival benefits have already been paid.
ULIPs are insurance cum investment plans which allow you to invest to meet your long-term financial commitments along with providing life insurance coverage. The premium amount paid is invested in the funds opted for, & the rest is allocated towards life insurance coverage. It also provides an option to switch between the funds with your changing requirements & the life milestones you reach. The funds invested generally cannot be withdrawn in the lock-in period, i.e. 5 years, & a surrender fee is charged in case funds are partially withdrawn before 4 years.
In case of a sudden demise of the policyholder, the beneficiaries will receive the death benefit or the fund value, whichever is higher. In case the policyholder survives the policy, the policyholder will receive the fund value that would have been accumulated, depending on the fund's performance.
Under the Joint Life Insurance Plan, two individuals are covered under a single plan, which is basically meant for couples. This plan ensures the financial security of family members in case of the sudden demise of any of the insured. This means it covers both husband and wife, whether both of them or either of them is working.
This plan is ideal for couples to get a combined life coverage at an affordable premium rate. Any two members of the family can take advantage of this plan, i.e., the husband and wife, siblings, parent & child, etc.
Provided are the steps to choose a life insurance for your family members:
Visit the official website of an insurance company & look for the option “Life Insurance” amongst the different plans available.
Fill out the basic details, such as date of birth, gender, name, contact number, etc. Providing such information will help the insurance company customise appropriate plans for you.
Now, input certain details like annual income, occupation, educational background, etc. Providing such details has an effect on the coverage to be received, ensuring the plan is customised as per your requirements.
Lastly, make a comparison of all available plans to choose the one that best suits your requirements. Make payment against the plan & the details of the policy will be received.
Life insurance plans for family members offer multiple benefits, such as extensive coverage, tax advantages, and safeguards for your near & dear ones. It comes with multiple flexible plans that can be customised to add riders according to the one that best suits your requirements. A wisely chosen plan will offer financial support to you & your family members in case of sudden demise. This ensures fulfilment of financial needs & maintenance of the standard of living.
