Kotak e-Term Plan
Protect Your family’s financial future with Kotak e-Term Plan.
Kotak Assured Savings Plan
A plan that offer guaranteed returns and financial protection for your family.
Kotak Guaranteed Savings Plan
A plan that offers long term savings and insurance in one premium.
Insurance and investment in one plan with Kotak e-Invest.
Kotak Health Shield
Insurance against medical expenses related to heart, brain, liver and Cancer.
A life insurance policy provides financial protection to your family in the unfortunate event of death. At a basic level, it involves paying small monthly sums called premiums. However, depending on the type of life insurance products you have opted for at the policy’s maturity, you will receive returns the policy may have earned over the years. Also, in case of the policyholder’s untimely demise during the tenure of the policy, your family will receive a lump sum amount.
Today, there are various types of life insurance products that cater to a wide variety of needs, such as:
This article will help you know what is the classification of life insurance.
Given below are the basic types of life insurance policies in India. All other life insurance policies are built around these basic insurance policies by combining various other features.
The simplest form of life insurance product is a term insurance policy. Being a pure risk cover policy, term insurance protects the person insured for a specific period. In such type of a life insurance policy, a fixed sum of money called the sum assured is paid to the beneficiaries if the policyholder expires within the policy term.
Scenario 1: If a person buys a ₹2 lakh policy for 15 years, his family is entitled to the sum of ₹2 lakhs if he dies within those 15 years.
Scenario 2: If the policyholder survives the 15 years, though the premiums are not returned, the family is offered financial security.
A whole life policy covers a policyholder against death throughout his life. The validity of this life insurance policy is not defined; hence, the individual enjoys the life cover. Under this life insurance policy, the policyholder pays regular premiums until his death, upon which the corpus is paid to the family.
Enhanced protection: Increasingly, whole life policies are combined with other insurance products to address various needs such as retirement planning, etc.
Endowment policies are among the popular life insurance policies, combining risk cover and financial savings. Policyholders benefit in two ways from a pure endowment insurance policy. First, in case of death during the tenure, the beneficiary gets the sum assured. If the individual survives the policy tenure, he gets back the premiums paid with other investment returns and benefits like bonuses.
Many people prefer this life insurance policy because it gives periodic payments during the term of the policy. In other words, a portion of the sum assured is paid out at regular intervals. If the policyholder survives the term, he gets the balance sum assured.
ULIPs are market-linked life insurance products that provide life cover and wealth creation options. A part of the amount people invest in ULIP provides life cover, while the rest is invested in the equity and debt instruments for maximizing returns.
In these life insurance policies, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against financial risks and provide money in the form of a pension at regular intervals.
Thus, whatever your financial requirements, there are many types of life insurance plans to ensure that your requirement is fulfilled as per your needs and planning.