 Broadly insurance can be classified in two categories: First - Life Insurance which matures in event of death of the insured/policyholder. On occurrence of such an event the insurance company pays a sum of money assured to the nominee/beneficiary (person nominated by the policyholder). Life Insurances are of two types: Traditional Plans - which contain Endowment Plan , Cash Back Plan, Term Plan , (Term Life Insurance) and Whole life policy. And Unit-linked Insurance Plans - are of 4 types - Endowment cum Ulips, Children Plan , Retirement Plan or Pension plan and investment/saving plans. Second - General insurance. All insurance policies other than life insurance policies come under general insurance segmentation. (Also known as non-life insurance policies). These policies include Home Insurance, Auto Insurance, Travel Insurance, Marine Insurance, Theft Insurance, Office insurance and Health insurance Health insurance is most acquired policy in general insurance segment. Health insurances are of 3 types - Comprehensive Plan - which include Mediclaim and Fixed benefits plan, Accidental Insurance and Critical Care plan . |
Money-back plan is a part of life insurance which give periodically return of a certain percentage of the sum assured instead of waiting till the end of term.
Features:
Money Back plans are the one that returns money during the policy tenure. These policies give a fixed % of sum assured periodically like 10% of sum assured on completion of 3 yrs, 15% after six years and so on.
Endowment plans on the other hand pays the entire money only when the policy matures. This includes products that offer the entire premium back and policies that have part assured returns with bonus on policy maturity. Endowment plans suits younger people who cannot spare much money for investments as they have other priorities. The sum assured for these plans are lower than money back as the insurer needs to pay the entire on maturity.
Term Plan are basically a death benefit plan having no maturity value.Also there is no guarantee of returns as it is in Money back plan/endowment plan. These plans are meant to cover your financial obligations.
LIC Jeevan Surabhee |
|
