Most of us aspire toward a positive lifestyle. One where we along with our family and loved ones are having fun times and life is all good. However, as we know, life is unpredictable. Being prepared helps us. You can prepare for such situations with life insurance plans.

Let us first understand what life insurance plans are.

Life insurance plans are an agreement between you and the insurance pro- vider. You pay the premiums on your life insurance plans and the insurance provider agrees to provide you cov- erage based on your requirements. This coverage amount protects you against crises.

Some policies provide you with the option to avail life insurance plans and add riders to them.

Why does one need life insurance plans?

From your first job to getting married to having kids and even retiring, life insurance plans are one of the most relevant insurance policies that you could have in your basket.

1. They ensure securing the financial needs of your beneficiaries in case you meet an unfortunate incident.

2. Some life insurance plans allow you to bifurcate your premiums. The premium then goes toward investments in debt or equity or both and the rest goes toward your life coverage.

3. Financial crises can hit anybody. In dire times, your life insurance policy can act as an anchor that will provide you with the cash infusion you need.

4. If you meet with an accident, your life insurance policy acts as a financial security for your family and you. It allows you to meet your day-to-day needs without facing much of a hassle.

The various types of life insurance plans are:

• Term life insurance policy: It is the simplest type of life insurance policy with low premiums. It pays your family a sum of money in case of your death, during the policy term. It does not pay anything if you survive the policy term.
• Endowment life insurance policy: It is an insurance policy that provides a lump sum payment to the policyholder or their nominee at the end of the policy term, or if the policyholder dies during the policy term. It also provides life insurance coverage.
• Unit Linked Insurance Plans (ULIP): It is a type of life insurance policy that combines insurance coverage with investment opportunities. The premiums paid towards a ULIP are invested in market-linked funds and cover your life.
•  Retirement Plan: It is a type of life insurance policy that provides a regular income to the policyholder after they retire. 
• Child Plan: It is a type of life insurance policy that provides financial security for a child in case of the death of the policyholder. 

These are the various life insurance policies available to you. Ensuring that you purchase the right policy at the right time will help you lead towards financial security and independence.

In case you are facing struggles understanding the policies or the terms, reaching out to a professional is the best way forward. Insurance protects the wise and the well-read folks who understand the product better.