#FinancialBytes: 6 best Life Insurance policies available in India
Almost everyone has heard of "Life Insurance". It is one of the safest and best ways to protect one's family and their future in case of the policyholder's untimely demise. Insurance providers guarantee to pay an "assured sum" to beneficiaries in such unfortunate events. However, there are different policies offering various other benefits and bonuses, too. Here are 6 popular life insurance policies.
There are several life insurance products that come with various offerings. However, such policies broadly are of two types: term life plan (premiums should be paid only for a fixed term) and whole life policy (premiums should be paid till one's death). Some common types of products include term insurance, whole life, annuity/pension plans, Unit Linked Insurance Plans (ULIPs), endowment policy, and money-back policy.
LIC Jeevan Chhaya Plan is a double-benefit plan. Assured sum is paid upon policyholder's death. 25% of "assured sum" is paid in each of the last four years of the term whether the policyholder is alive or dead. Bonuses are paid in the last year. The minimum sum assured is Rs. 50,000. Policy's duration is 18-25 years. Tax benefits and loans can be availed.
Tata AIA Life Insurance iRaksha TROP is a double-benefit online term insurance plan with return of premium. The minimum sum assured is Rs. 50L, there's no upper limit for it. Plan tenure is 10-30 years. Tax benefits can be availed. Women policyholders can enjoy lower rates. Assured sum is paid to nominees upon policyholder's death; total paid premiums are returned to policyholder on maturity.
SBI Life eShield is a pure term online insurance policy with low premium rates. It offers two benefit structures: Level Cover (sum assured remains unchanged) and Increasing Cover (sum assured increases 10% every 5th year). Sum assured is paid as death benefit to nominee. Minimum sum assured is Rs. 35L; there's no maximum limit. Policy term ranges between 5-30 years (depends on protection variants).
Under Aegon Life iTerm Insurance Plan (online), customers can enjoy cover until 100 years of age. The minimum assured sum is Rs. 25L; there's no upper limit; life cover can be increased to meet one's needs. Policy term is 5-62 years. One of the highlights is, 25% of death benefit is paid if policyholder is diagnosed with terminal-illness; they need not pay further premiums.
ICICI Prudential Life Raksha plan is an affordable life insurance solution designed to cater to wide range of customers. The assured sum is paid on policyholder's demise even during the policy term. Nominees receive a minimum assured sum of Rs. 50,000 or a maximum of Rs. 5L. The policy duration is only five years. People in the 18-60 years age group are eligible.
Reliance Nippon Life Term plan is another pure insurance product that offers comprehensive coverage for a particular period at affordable rates. The policy term is 5-30 years, and the minimum sum assured is Rs. 5L; there's no maximum limit. On policyholder's death, the sum assured is paid to the nominee as a lumpsum. However, no maturity benefit is paid to policyholders under this plan.