- Whole life policy:-
the premium on this policy is payable throughout the lifetime of the life
assured. The sum assured becomes payable only on the death of insured.
- Endowment policy:-
this policy is taken for a specific period known as 'endowment period'.
The sum assured is payable either on the death of life assured or on the
expiry of a fixed period. If the person does not die upto the maturity of
the policy, he shall get back the insured amount after the maturity of
life policy. It is the most popular form of life insurance.
- Joint life policy:-
In this policy, husband and wife or the partners of a business can have a
joint policy. The sum assured is payable at the end of the endowment term
or on the first death of any one of the lives assured, which ever is
earlier. Such policies are usually taken by partnership firms.
- Annuity policy:-
In this policy, the amount is payable by the insurer not in one lump-sum
but by monthly, quarterly, half-yearly or annual installments which are
paid either until death or for a specified number of years. This type of
policy is very useful to those persons who desire to provide a regular
income for themselves and their dependents after the expiry of a specific
period.
- Sinking fund policy:-
this policy is mostly taken by firms and companies to accumulate funds to
pay off a liability or for making a provision for the replacement of an
asset after a period of time.
- Group insurance policy:- this policy may be taken out for the protection of
lives of all employees in a business concern. Dependants of the employees
are entitled to the benefits of these insurances.
Source : http://business.gov.in/