Life insurance covers one risk: your income stopping because you are no longer there. Every product in the category is a variation on how that protection is packaged, and how much saving is bundled alongside it.
The main product types
Term insurance is pure protection — the largest cover for the smallest premium, with no maturity value. Whole life extends cover across your entire lifetime. Endowment and money back plans combine modest savings with protection. ULIPs link the savings component to market funds. Child plans add a premium waiver so an education stays funded. Retirement plans convert a corpus into income.
Riders worth understanding
Accidental death, permanent disability, critical illness and waiver of premium riders attach to a base policy at low cost. A disability rider in particular deserves attention, because losing the ability to earn is more likely than dying during your working years.
How to decide
Establish the required cover first — typically ten to fifteen times annual income, adjusted for liabilities and dependants — then choose the structure. Doing it the other way round is how people end up with six small policies and no adequate one.