Life Insurance plan is an important part of preparing for a secure financial future. Here are some things that you need to know about the types and benefits of purchasing a Life Insurance policy.
Types of a Life Insurance plan
Term Insurance plan
As the name says, a Term Insurance plan is valid for a fixed term. You are required to pay premiums only for that period. These plans do not have maturity benefits, and hence the premiums you pay towards them are relatively lesser. This policy is beneficial only for a limited period. It is best suited for those looking to plan for an upcoming event in the near future like a child's education or marriage.
Unit Linked Insurance plan
These plans offer you the opportunity of wealth creation along with a life cover. These plans come with an investment feature built within. The ULIP premiums that you pay towards these plans are invested in a financial instrument of your choice. This investment can reap the rewards as per the market condition. Also, you can withdraw the amount accumulated partially within the policy period.