What are the types of life insurance plans?

Life insurance plans are classified into two major types

Pure protection policies or term life plans: Life insurance term plan pays the nominee a death benefit up to sum assured if the policyholder dies during the policy tenure. In comparison to investment-type life insurance plans, term life plans only offer you a death benefit and no other returns.

Investment policies: Investment-type life insurance plan pays you a certain sum of money as maturity returns after a set time period as per the policy, or pays death benefit to your family in case of death during policy tenure. Maturity Period and Age limit for a policy differs from policy to policy.

Below are some of the examples of investment policies: Endowment Plans, Whole Life Plans, ULIPs, Annuity Plans, Money Back Plans among others.