One never knows what curveball life may throw their way. A random misstep, one accident, a pandemic, anything can arise any moment, but we need to be prepared. And that’s why, it is important to have a life insurance policy that can take care of your loved ones even when you are not around.

There are three goals of a life insurance policy

• Protection: Against the death of the main earning member
• Investment: Earned interest on the policy
• Saving: For old age

What are the various types of life insurance policy?

Types of life insurance policy

• Term insurance:
  A complete protection plan where the beneficiary gets the sum assured or the death benefit on the passing away of the policyholder (during the term of the plan).
• Whole life insurance:
  The insured is covered for the entire lifetime. In the event of the demise, the beneficiary gets the amount, along with the benefits. In the event of the policyholder surviving the term, they get the survival benefits.
• Endowment policy:
  This one offers the dual benefit of policy and savings.
• Moneyback policy:
  The insured gets the sum insured in periodic installments, throughout the tenure of the policy.
• ULIP:
  This one offers a cover as well as an investment. One part is invested in mutual funds and the other one as insurance.
• Children’s policy:
  This one involves saving money for the child’s future as well as getting an insurance cover for the main earning member.
• Retirement plan:
  These plans create pension in the form a corpus from the regular income, which is given to the insured person after reaching a certain age.

What are life insurance covers?

Do you know you can enhance the protection of your life insurance by adding a cover to it. Following are some of the ways in which you can do that.

• Critical illness rider
• Hospital cash rider
• Accidental death benefit rider
• Accidental total and permanent disability rider
• Waiver of premium rider

Ask your life insurance agent, after you have reached them via uponly.in as to what more covers can they provide along with the life insurance. The more, the better protected you and your family are.

Are there any exclusions with respect to life insurance?

Just like health insurance, life insurance too has certain exclusions. Let us list down a few for you. Of course, the list is not exhaustive. It varies from one insurance company to another.

• Deliberate self harm
• Damage caused due to negligence
• Manmade disasters
• Death due to STDs
• Extreme sports
• Death due to involvement in any illegal or unlawful activity

Are there any tax benefits with life insurance?

You can enjoy benefits for up to 150000 under section 80C of Income Tax Act, 1961 when it comes to the insurance premium that you are paying. You can also claim deductions on the additional rider cover.