These policies pay only in the event of death. There
is no savings clement in them. The premium is minimal and no payment is
received at maturity. These are popular with people who donít want to invest
through life policies.
There are variations of this policy. Some policies assure return of the premium
amount on maturity.
These are the most popular policies. They have two
parts- life insurance and savings. We suggest LICís Tables-14 and 48 which
have given best performance over the years.
In long-term policies, the insured has to wait for the
payback time for many years. He may need the money at shorter intervals.
Money back policies provide answer to this problem. There is periodic
withdrawal of money by the assured while life insurance part remains
unaffected. Almost all companies have a reasonably good product.
They are like money back policies. They start at a lower age
and run for minimum of 9 years. The withdrawal is done at the 18 years, 20
years, 22 years and 24 years of age of the child to coincide with admission
to college for higher education of children or the marriage of a girl child.
The best policy in this category in the market is Komal Jeevan of LIC.