What are Whole Life Plans

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As the name suggests it insure you for the entire life.
So the term will become the day you took the policy till you survives.

A typical Whole Life policy provides you with the options.
1) Pay premium until you live and be insured entire life.
2) Pay premium until limited period and be insured entire life.

There are whole life plans which can be converted to normal Endowment plans on later dates; such policies are called convertible Whole life policies.

Maturity Benefit typically would be paid to the nominee on the death of the insured person, and generally it will be equal to S.A + Bonus,
However there are Whole Life policies which allow you to get Maturity benefit on latter part of your life (Generally after 80th Year).

Bonus rates for Whole Life policies are quite high compared to Endowment and Money Back policies and premium rates are low.

If you want to build good corpus for your spouse when you die, by paying low premium and also want your life insured then whole life policies are for you.
Also if one is starting his/her career and want to get his life insured, but on later dates want to convert it to Endowment, Convertible Whole Life insurance policies are best options.

Advantages:

· Low premium and high risk cover.

· Tax benefit on premium paid.

Disadvantages:

· High surrender charges.

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