Types of Life Insurance in India 2026: How to Choose the Right Plan for Protection and Returns

Term, savings, ULIP, child and annuity plans each solve a different problem. Here is what each category does.

Indian buyers choose from five broad categories, and understanding the distinction is half the work of choosing well. Aditya Birla Sun Life Insurance (ABSLI) offers plans across all five, which makes it a useful shelf to walk through category by category.

Term insurance is pure protection. It pays a sum assured to the family on the policyholder’s death during the term, and nothing on survival. Because there is no savings element, it offers the largest cover for the smallest premium, which is why financial planners recommend it as the foundation. Endowment and guaranteed savings plans combine life cover with assured benefits.

Unit linked insurance plans, or ULIPs, invest the savings portion in market-linked funds, where the policyholder bears the investment risk.