A life insurance company is an organisation, which creates variegated life insurance policies for its customers. Policyholders pay a premium to the insurance company, which is determined by the sum assured for the chosen coverage, along with other benefits and factors. A life insurance company also needs to handle all claims, which its customers file.
Before extending the financial compensation after a claim is filed, life insurance companies need to verify all information and circumstances of a policyholder’s death. Death by accident or suicide is often excluded from life insurance policy coverage.
Thus, if a policyholder succumbs due to either of these reasons, his/her family members are disqualified from claiming death benefit from the insured life insurance policy.
The following are some of the common types of life insurance policies available in India:
- Unit Linked Insurance Plans
- Term life insurance
- Endowment plans
- Whole life insurance
- Money-Back policy
- Retirement plan
- Child plan
These are the seven different life insurance policy types, each of which is geared to meet various requirements and conditions.
You need to consider your current situation in life to determine which of the policies mentioned above is the best suited to your needs.