Life Insurance Products in General: Based on the Need, Age and Commitment of an Individual the Insurance Products are available in the Market.
1.Term Insurance Plan: Under which the Insured will pay regular Premiums for agreed no of years and get his LIFE is INSURED till that period. In case of that individual lives till the end of the Policy Term he will not get back any payments from the Insurance Company. But in case the Insured Dies during the period of Policy Term his NOMINEE will be paid by the Insurance Company a pre Promised amount of DEATH BENEFIT, on submission of the CLAIM by the Nominee, subject to that the Insured has paid all the Premiums in time regularly up to his death.
The role of the Agent Adviser has a big role in dealing with the settlement of CLAIM. Mostly young earning persons are opting for this of policy.
2.Endowment Plan: The Insured will pay regular Premiums for agreed no of years and get his LIFE is INSURED till that Period or beyond as agreed upon. The Insured will receive Pre agreed MATURITY VALUE at the end of the term of the Policy provided he paid all the Premiums in time and till end.
In case the Insured DIES during the Insurance Term, his Nominee will be paid by the Insurance Company, Pre agreed DEATH BENEFIT, provided the Insured Had paid all the Premiums regularly till his DEATH. The insured will start getting ANNUAL BONUSES every year. The amount and time of payment differs from Company to Company and Policy to Policy.
3.Whole Life Plan: The Insured will pay regular Premium Premiums for an agreed no of years up to a maximum of his 100th year of his age. In case the Insured lives till the end of the Policy The Insurance Company will pay him Pre agreed SUM ASSURED plus BONUS, provided that the Insured paid all the Premiums regularly till end.
Under this scheme the Insured can draw part of the Sum Assured to meet his own CRITICAL ILLNESS. In case of the Death of the Insured his NOMINEE will be paid Pre agreed DEATH BENEFIT plus BONUS up to that time, provided that the Insured has paid all the Premiums in time till his death. (Some changes were made by IRDA with effect from December 2013).
4.Pension and Saving Plan: The Life Insured will pay Premiums regularly till the agreed no of years and starts receiving PENSION annually from his 61st year till his 75th year at the rate of nearly equals to the yearly premium paid by him.
He will also receive Yearly BONUS declared by the Company year after year based on the performance of the Company, from the third year of the starting of the Policy. He will also receive LUMP SUM payment at the maturity of the policy i.e. at his 75th year of age.
In case of the death of the Insured during the term of the Policy, his NOMINEE will be paid pre agreed DEATH BENEFIT plus Bonus up to that date if any.