India's 1st IRDAI Approved Insurance Web Aggregator

Understanding the benefits of Whole Life Insurance Plans

Understand what whole life insurance is and the benefits associated with it! Now provide financial benefits to your family for lifetime with a whole life insurance plan.

By: Jay Vasa | 
Read Time: 3 minutes, 19 seconds | 
Last Updated: 15-02-2022
Understanding the benefits of Whole Life Insurance Plans

What is a ‘Whole Life Insurance’?

Life insurance is the need of the hour. There are various types of life insurance plans that provide financial security and other benefits. Whole life insurance is one such unique life insurance plan. Understand what whole life insurance is and the benefits associated with it! Now provide financial benefits to your family for lifetime with a whole life insurance plan.

Whole Life Insurance or Whole Life cover is a type of permanent life insurance
. In general terms, it is a contract between the policyholder and the insurance company, where the policyholder ensures to pay premium regularly and in return the insurance company grants whole life cover to them. Basically, whole life insurance covers you till the age of 100 years. In case the insured dies before the term ends, then the sum assured or the coverage amount shall be paid to the nominee as ‘Death Benefit'. Alternatively, if the life insured outlives the mentioned term then the person is entitled to receive ‘Matured Endowment Coverage’. This article will provide brief information about the whole life cover  which you need to consider before buying this policy. 

Benefits of whole life Insurance:

  • Whole Life Insurance with financial assistance: The term itself serves as a benefit, where you can be covered for your entire lifetime and ensure financial stability to the ones who are dependent on you mainly considering your spouse and children. If you even have financial dependents at your old age, then too this policy will help you meet your financial needs.

  • Fixed premiums: This policy has got nothing to do with market conditions, hence the premiums remain constant till the entire term. This benefit helps you to optimize your expenses, which reduces the burden on your pocket and eventually helps you to plan your premium payments.

  • Can avail loan option: The option of loan can be availed for emergency financial needs. Generally, this benefit can be availed against your surrender value which increases by your premium payments. In this policy you can obtain loan benefits after your policy has completed 3 years. The names of such traditional insurance policies which provide loans against policies are Endowment plan, Money back policy and a few more.

  • Tax benefit: The premium that you pay shall be tax exempted under the section of 80C of the Income Tax Act(1961). Apart from this, payout made to the policyholder or the nominee will also be tax free under the section 10(10D) of Income Tax Act(1961).

Now let us understand if the whole life cover is worthwhile?

It completely depends on what your requirements are? It is probably beneficial from the point of view of financially securing yourself and your family throughout your lifetime and not just for a limited period. Besides this, if you can afford high premiums then it's quite possible that your policy can grow as a cash asset. 

Invest as early as possible!

It's advised that you should opt for this policy in the early stage of life as the premium is determined on the age factor. Also, due to increasing uncertainties during this pandemic period it is better to not delay buying this plan. Benefits like long coverage, guaranteed sum assured and guaranteed death benefit, such advantages generally tempts people to get covered in this policy as soon as possible. 

An option of limited paying premium is also available, so that a policyholder gets an opportunity to pay the required premium in less time and will be covered for the rest of their term. Young ones have to pay lower premiums because they are generally considered as people with low risk.

It is a good idea to get a whole life insurance plan. You can provide protection to your dependents throughout your lifetime and that gives a lot of peace of mind. You have the option of paying premiums only during your earning years but the cover continues for lifetime.

Read this article in Marathi |  Hindi

Jay Vasa
Jay Vasa is a content writer, who has got his core emphasis on insurance related information. The sole motive of writing articles is to spread appropriate information to the people regarding one of the important and discussed topic in today's time.

Leave a Comment

Important: Insurance is the subject matter of solicitation | © 2009-2023