Types of Life Insurance Policies in India

What are the Different Types of Life Insurance Policies in India?

How to Choose the Best Life Insurance Plan?

FAQs About Types of Life Insurance Policies in India

What Are The Tax Benefits From Life Insurance? up-arrow

Premiums paid towards Life Insurance policy come under Section 80C up to the specified limit of the section. Also, the return on the investment, i.e., all kinds of payouts from the insurance policy, are tax-free under Section 10 (10D).

Are Riders a Type of Insurance Policy? up-arrow

No. Riders are an add-on that can be purchased with the primary insurance policy to increase and customise the benefits offered by the policy.

Which is the Most Common Type of Insurance Policy? up-arrow

Term plans, the most basic and affordable insurance plans, are the most commonly bought insurance policy. However, ULIPs are preferred mainly by people looking for long-term investment options.

Is the Whole Life Plan More Expensive Than the Term Plan? up-arrow

Yes. Since the Whole Life Plan comes with a savings component, usually it's more expensive than the Term Plan that does not have any savings component and provides only death benefit.

What Does "Fully Paid Up” Mean on a Permanent Life Insurance Policy? up-arrow

“Fully Paid Up” means you have made enough premium payments to  cover the cost of insurance for the rest of its tenure. Thus, even though you have stopped paying any further premiums now, you are covered for the complete policy tenure.