There are three types of Insurance plans under Risk Mitigation & Wealth Creation:

a.) Endowment plan b.) Pension (annuity) plan c.) Unit Linked Insurance Plan (ULIP)

Endowment plan
The insurance, which is a combination of Term insurance & Savings element and it pays a
lump sum after a specified term or on death: Endowment plan.
In case of death of policy holder, the sum assured plus bonuses are paid to nominee;
In case of survival of policy holder, the sum assured plus bonuses are paid to the policy holder.

Children plan:
It is one of the type of Endowment plan for securing the future of children (i.e.higher
education, marriage etc). In Children plan (i.e. an endowment plan) in the event of death of
the parent (policy holder) before term, the sum assured is paid at the end of term to the Child.

Money Back Plan: It is an insurance policy in which the policy holder get "periodic
payments" during the term of the policy and a lump sum amount on surviving its term OR in
event of death during the term, the beneficiary gets the full sum assured without any
deductions for the amount paid till date: Money Back Plan.

Life annuity (annuity paid until death)

Which of the following pension plan provides pension for entire life: Life annuity.

ULIP :The combination of an Insurance policy and an Investment fund(such as Mutual

Fund etc) : ULIP (Unit Linked Insurance Plan) in ULIPs, the Premiums are invested in
stocks & bonds i.e. in security markets better for long term investment; yields better returns
than traditional plans, where premium is invested in govt. securities, money market
instruments & bonds.
In ULIPs, Risk cover and administrative charges are deducted from Premium & rest is
invested in securities.
In case of ULPs, the lock-in period is : 5 years.