Life Insurance is a financial cover for a contingency linked with human life events like death, disability, accident, retirement etc. In India, Life Insurance can be broadly classified as pure insurance plans or insurance plan coupled with investment / savings component.
Types of Life Insurance Plans in India
Life Insurance Plan Variant
|Term Plan||Pure Risk Cover|
|Unit linked insurance plan (ULIP)||Insurance + Investment opportunity|
|Endowment Plan||Insurance + Savings|
|Money Back||Periodic returns with insurance cover|
|Whole Life Insurance||Life coverage to the life assured for whole life|
Linked to life events of a child.
|Annuity (Pension) Plans||Retirement Plans|
Life Insurance Variants in India
a. Term plans provide pure life cover without any savings or investment component. These plans are more affordable when compared with investment linked or annuity linked plans.
b. Unit linked insurance plan (ULIP) is an insurance cum investment plan where a part of the premium gets invested into capital markets. The returns out of the ULIP on maturity are exempt from income tax under Section 10(10D) of the Income-tax Act. The lock in period for ULIPs is five years.
c. Endowment plan is a life insurance policy which provides you with a combination of both i.e.: an insurance cover, as well as an savings plan. In the event of death or disability, sum assured is paid to the beneficiaries. On survival by the date of maturity, a lumpsum amount is paid to the policy holder.
d. A money-back policy assures the policy holder a fixed benefits during the plan tenure and on maturity, the remaining Sum Assured is paid along with vested bonuses. However, in the event of death of the policy holder during the plan tenure, the full Sum Assured is paid irrespective of the Survival Benefits already encashed
e. Whole life insurance offers both, a death benefit as well as savings benefits. The policy lasts for your whole life (as long as 100 years). Policy holders are assured of lump sum when they decide to discontinue (Surrender) the policy.
f. Child’s Plan are taken on the life of the parent/children for the benefit of the child. These policies are taken on the life of the parent/children for the benefit of the child. These plans generally offer waiver of premiums in case of unfortunate death of the parent/guardian during the term of the policy.
g. An annuity plan is a pension plan coupled with life risk coverage.
List of Life Insurance Companies in India*
|1.||Bajaj Allianz Life Insurance Co. Ltd.|
|2.||Bharti AXA Life Insurance Co. Ltd.|
|3.||AEGON Life Insurance Company Limited|
|4.||Shriram Life Insurance Co. Ltd.|
|5.||DHFL Pramerica Life Insurance Co. Ltd.|
|6.||TATA AIA Life Insurance Co. Ltd.|
|7.||Exide Life Insurance Co. Ltd|
|8.||Aditya Birla Sun Life Insurance Co. Ltd.|
|9.||Max Life Insurance Company Limited|
|10.||Kotak Mahindra OM Mutual Life Insurance Limited|
|11.||SBI Life Insurance Co. Ltd.|
|12.||IDBI Federal Life Insurance Company Ltd.|
|13.||Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.|
|14.||HDFC Standard Life Insurance Co. Ltd|
|15.||ICICI Prudential Life Insurance Co. Ltd|
|16.||Future Generali India Life Insurance Co. Ltd.|
|17.||Reliance Life Insurance Company Limited|
|18.||Star Union Dai-ichi Life Insurance Company Ltd.|
|19.||India First Life Insurance Company Ltd.|
|20.||Edelweiss Tokio Life Insurance Company Limited|
|21.||Life Insurance Corporation of India|
|22.||PNB MetLife India Insurance Co. Ltd.|
|23.||Aviva Life Insurance Co. India Ltd.|
|24.||Tata AIA Life Insurance Company Limited|
|25.||Sahara India Life Insurance Co. Ltd.|