Type of Life Insurance Covers

Traditional life insurance plans : - Traditional life insurance plans make sure that the investments made by the policy holders are not exposed to equities

Unit Linked Insurance plans (ULIPs) : - Allows for the investments made by the policyholders to get exposed to equities

Different Traditional life insurance plans

Whole Life Plan :
As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens. Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family. So the insurer

Endowment Plan:
In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.

If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover. If the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.

There is a term for the policy , say 20 years , which denotes the premium paying period

The Insurer gets the amount in one lump sum at the end of the term or in case of death.

Money Back Plan:
A portion of the sum assured is payable at regular intervals. On survival, the remainder of the sum assured is paid. In case of death, the full sum assured is paid to the insured.

The Insurer gets the amount once every few years , as per the policy document, say every five years.

Term Plan:
A term insurance policy is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term.
 
Source: http://insurance.kotak.com
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