1.Term insurance policy: This policy is a pure risk cover with the insured amount to be paid only if the policy holder dies during the period of policy time. The intention of this policy is to protect the policy holder’s family in case of death.
2.Endowment policy : In this policy, the term of policy is defined for a specified period like 15, 20 or 25 years. The insurance company pays the claim to the family of the assured on the event of his death within the policy term or on the event of the assured serving the policy term.
3.Whole life policy : In this policy, the insurance company collects premium for the insured for the whole life or till the time of his retirement and pays claim to the family of the insured only after his death.
4.Money back policy : Money back policy provides money on occasions when the policyholder needs it for his personal reasons. The occasions may be marriage, education, etc. Money will be paid back to the policyholder with specified direction. If the policyholder dies before the policy term, the sum assured will be given to his family. A portion of the assured is payable at regular intervals. On survival, the remainder of the sum assured is payable.
5.Annuities and pension: In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect the insured against risk as well as provide money in the form of pension at regular intervals. Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people.