8 Types of Life Insurance policies & What Type Should You Choose..?

Eight Types of Life Insurance policies: 
What Type Should You Choose..?
By Mr. Chandan Khasnobis, IndiaFirst Life Insurance

With multiple categories of insurance plans available, choosing a category that matches your needs will allow you to realise the policy benefits to the maximum.

Read on to know how you can match your need with an ideal category.

Consider this scenario..

 You wish to buy an insurance policy that will give you a large cover at minimal costs.
Or, you wish to secure your child’s future.
Or, you wish to build long-term savings through market-linked returns with an insurance cover.






Bearing in mind such different needs, life insurance companies offer multiple products, each designed to meet a specific need.

Benefit of choosing a tailored product:

By choosing a product category that matches your need, you can be rest assured that your need will enjoy the safety net offered by life insurance, and, therefore, will be met in case of all eventualities.

Broad insurance categories..!

Though each product category has multiple policies, all policies can be broadly categorised as follows:

  1. Pure Term plans..!
It allows you to enjoy a large insurance cover at minimal costs, in case of death during the policy term, your dependents will receive the policy sum assured, but if you outlive the policy term, you are not entitled to receive anything.


Chandan Khasnobis,
IndiaFirst Life Insurance
  1. Endowment plans..!
These types of policies allow you protection and savings, and on maturity or death, the policy pays out the sum assured plus accumulated bonuses.

  1. Whole life plans..!
With this kind of policies, you can enjoy life cover throughout your lifetime and on death your dependents will receive the policy sum assured plus accumulated bonuses.

  1. Money-back plans..!
 You receive periodic payouts for meeting financial commitments at key stages in life.

On death during the policy term, your dependents will receive the policy sum assured plus bonuses.

Remember, earlier payouts received are not deducted.

  1. Unit-linked insurance plans (ULIPs)..
It allows you to enjoy market-linked returns and speed up the wealth creation process. While a portion of the premium paid is towards the insurance cover, the remaining is invested in an investment fund of your choice.

On death or /  maturity, depending on the plan features, the payout includes higher of the policy sum assured and fund value or / both.

  1. Pension plans..!
These plans help you build a corpus for your retirement that will allow you to enjoy financial independence. Based on the frequency of your choice, you receive a regular stream of income from the same.

  1. Child plans..!
 This allows you to secure your child’s future even in your absence.

You receive periodic payments that will give you financial support when your child reaches his/her milestones. On death of the parent, in most cases the basic sum assured is paid, future premiums waived and the periodic payments continued to be made as per the plan.

  1. Loan Protection plans..!
You can secure your loan liabilities under all circumstances. On completion of the loan repayment, the insurance cover ceases or can be easily surrendered, depending on the plan terms.

In case of death / total and permanent disability during the policy term, the policy proceeds can be used to settle the outstanding loan amount.

However, before you buy any plan ask yourself do you need insurance?

If “yes”, how much cover..?

The cover will depend on your needs & your premium paying capacity.

Choose a premium amount that you can comfortably pay over the policy term.

Finally, ask why you need insurance?
Once the specific need is clear, pick a category that best serves your need. The policies available within the chosen category will be the right policy for you.

About the author..
 Mr. Chandan Khasnobis is Director & Appointed actuary of IndiaFirst Life Insurance.

Mr. Chandan carries with him a comprehensive experience of about 40 years in Life Insurance, Pension, General Insurance, Re-insurance, Administration, Marketing and Actuarial Education. He was the Appointed Actuary for Aviva India Life Insurance from 2006 to 2009. 

Prior to his job in Aviva India, he was FSAVC Pension Review Actuary for Canada Life (UK). From 1997-2000 he held the position of Company Actuary / Senior Consultant in Zimbabwe Actuarial Consultants/ Fidelity Life Assurance of Zimbabwe Pvt. Ltd.. He was also the Deputy General Manager/ Actuary Kenindia Assurance Pvt. Ltd., from 1994 to1997. He worked for Life Insurance Corporation of India as Assistant Divisional Manager before this.
Mr. Chandan Khasnobis,
IndiaFirst Life Insurance
CMr. handan symbolizes knowledge and humility. He is a Fellow of Institute of Actuaries, London (FIA), Fellow of Actuarial Society of India (FASI), and Fellow of Indian Insurance Institute (FIII). He has a B.Sc. degree with honors in Physics. 

He is currently a council member of the Institute of Actuaries of India. He has worked in various committees under IRDA and as an examiner of Institute of Actuaries of India examinations. Also, he has worked as a member of the Life Technical Sub-Committee of Association of Kenyan Insurers as well as for General Insurance Technical Sub-Committee of Kenindia Assurance Company. In addition to these he has also been a part time lecturer for B.Sc. in Actuarial Science at the National University of Science and Technology, Zimbabwe.

He is married to Ms. Moulika. They have two daughters. He loves watching cricket and reading classics.


Email: Chandan.khasnobis@indiafirstlife.com

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