Buying a life insurance plan for the family can be a daunting task for anyone. While there are many advantages, there are also many options to choose from. Life or health insurance plans come with their own set of benefits that can differ from each insurance provider, but all of them offer a protective cover for your family.
Types of Life Insurance Plans for Your Family
Life insurance plans provide a multitude of coverages. Some offer basic insurance coverage, while the more targeted ones can give you additional advantages like pensions, survival benefits, etc. Let’s take a look at the best types of life insurance plans for your family:
1. Term Insurance
These might be the most basic form of life insurance, but they are also quite simple to understand with good benefits. The insurer basically ensures that you are properly covered for a specific amount of money based on the premiums you provide while the policy is ongoing.
The basic principle here is that you get to decide what the duration of the policy will be. You also get to decide the coverage amount you want out of the policy, for which the premiums will be accordingly set. In an uneventful situation of you passing away, your family gets the total sum insured from the policy.
2. Pension Policies
As the name suggests, a pension policy is primarily for securing your financial future after you retire. This ensures that even when you retire, you can support your family financially, and can stay afloat on your own.
Pension policies provide a monthly income based on the premiums paid, and ensure a quality life after your hay days of working. Your family can even avail the pension benefits after you pass away based on who you name as the policy’s beneficiary.
3. Joint Life Insurance Policy
This is one of the most preferred life insurance plans if you’re looking to invest in one for the sole purpose of your family. Under this type of policy, a couple can take a policy together. They do it under a single contract and ensure that you and your partner can stay financially secure
in the event of one passing away.
4. Money Back Policy
These policies are the best ones if you want regular returns out of the scheme, and still, be sure that your family will get the full sum assured amount once you pass away. This scheme offers regular payments to the policyholder at defined intervals, which gives it its name “Money Back”.
However, in the event of the policyholder’s death, while the policy is still in effect, the family gets the entire assured amount even when you might have received returns previously.
Pick The Best Suited Insurance Plan Now
Now that you’re aware of what is life insurance and the various types of life insurance plans for your family, you can pick the best-suited one out that serves your needs. Be careful and assess each insurance provider’s scheme before picking one, so that you can get the policy with the best coverage and returns.