Life insurance Traditional plan is a type of life insurance plan, that gives you multiple benefits, risk coverage with fixed income returns, additional bonuses, safety, and tax benefits. Some plans risk covering lifetime, some plans risk covering up to premium payout period, and some plans risk covering up to fixed term. Usually, the investment goal in these plans is Insurance coverage with wealth creation. In all the cases, if the unforeseen event of death of the policyholder sum assured amount paid to the Nominee which is mentioned on the policy or Legel heir of the policyholder. Traditional insurance plans are the oldest type of plans, usually, long-term, low-risk investment plans, and are normally not allowed to withdraw within the policy term. Having three types.
- Endowment plan.
- moneyback plans.
- Whole life endowment plans.
- An endowment plan is a combination of savings and insurance plans. In this plan, you have to save regularly for a specific period of time. If you survive up to maturity you will get the lump sum. The policyholder will get the maturity amount after a specific time. in between inevitable death happening to the policyholder nominee will get the sum assured according to the terms and conditions of the policy. the goal of the investment of this policy is savings, insurance, protect yourself and your family due to inevitable death. You can choose this type of policy for achieving your financial goals, like children’s education, marriage, or construction of a house in the future.
money-back policies are a type of Life Insurance Traditional plan comes under an endowment plan. in simply money comes back to the insured as considered survival benefit at some interval of a specific time, which is mentioned in the policy. In other words, from this plan, you protect your family with insurance and the option of money back. If the sum assured inevitable death in between policy terms, the nominee received the sum assured amount without deduction of money already backed. The next policy is terminated.
- whole life endowment plans- It is a permanent insurance plan, that provides you a fixed premium and a fixed sum assured. In this plan, you can withdraw funds at any time or use this policy to take out a loan.
Please click below the Non-Linked, Endowment plan.