De-jargonized Insurance policy types

Me and my flat mates were discussing on the various types of insurance policies available to the buyers. As a result I came across multiple words which we hear quiet often while buying such policies. These terms define the nature and extent of the policy. So, I intend to simplify the same in this post. Here it goes -

Types of insurance policies -

1. Term Insurance Policy

2. Endowment Plan

3. Whole life Plan

4. Money back Plan

5. Annuity\Pension Plans

6. Unit linked insurance Plans (ULIP)

Term Plan

• The policy’s Face Value is paid to the nominee only in the condition of death of the policy holder during the term.
• This plan offers a large Sum Assured as against a very nominal premium.
• The policyholder gets nothing on maturity.

Endowment Plan

• If The policyholder lives for a specified period he/she receives the Face Value /Sum Assured of the policy
• If The policyholder dies sooner, the beneficiary named in the policy receives the proceeds

Whole Life Plan

• The policy covers a very wide age group of people.
• The plan covers the person all through his life.
• The plan can work as a saving plan, as a retirement plan and even as a children plan.
• The plan offers both Maturity and Death benefit.

Money Back Plan

• The policyholder gets the Sum Assured benefit both at the time of maturity and death
• The policyholder is also entitled for Survival Benefit which is paid during the tenure at fixed intervals

Annuity/Pension Plan

• Annuities are contracts that convert an accumulation of money into a series of payments to the policyholder during his retirement age
• Payments are determined by the amount of money, the age and the interest rate used by the
• insuring company
• Some annuities guarantee payments for a fixed term while others guarantee payments of a fixed
• amount for the rest of life

Unit Linked Insurance Plan

• The plan offers the insurance cover with the added feature of a investment plan
• The risk and return in these plans goes hand in hand
• The plan offers flexibilities like partial withdrawals, switching, top-ups unlike the traditional plan
• ULIPs offer both death and maturity benefit

Hope by glancing through the details above you are able to decide better the next time you plan or advice someone before buying an insurance policy.

Information at a single location

Being a 2nd year MBA student at one of the country's leading b-schools entails you to a plethora of benefits. But whats interesting is the amount of countable work hours you are supposed to put into the daily schedule. Sighh... loathingly this doesn't ends at just going through the cases and articles for the next class but alot of outside the class stuff as well. This is what kills most of my enjoyable happy time - the pain to search for the right set of information at ease. The information which actually can add value to you and make you more like an intellectual sound person, in a reasonable short span of time is what I will try to add onto this page . In the upcoming days I intend uncovering interesting stuff  to reduce the time taken to sound more knowledgeable and wreak havoc among the more sane and wiser ones.
~Adios