What is Whole Life Insurance Policy?
Whole life insurance or permanent life insurance offers life insurance until the death of the life insured. The policy will remain in effect until life insured pays the premium.
The sum insured or the insurance cover is determined at the time the contract is concluded and paid to the candidate at the time of the death request – at the time the insured person dies.
The age of maturity is usually 100 years. If the insured dies before the age of 100, the candidate receives the sum insured.
However, if the life insurer survives at the age of 100, the insurance company pays the accumulated capital protection for the life insured.
Also read Top 10 Life Insurance Companies In India
How does whole life insurance work?
Whole Life insurance plans are very different from other types of life insurance plans. If you know how they work, you can also decide if they are right for you or not.
A whole life plan can be purchased for a payment whole life insurance that can be made monthly or annually in a single amount.
If you have purchased a unit-linked whole life insurance policy, your funds will not be used exclusively to buy your life insurance to pay the sum insured, and the remainder will be invested in a whole life insurance plan. Investments.
For unit-linked / flexible life-long contracts, the insurer reviews the contract regularly to compare whether the value of the contract equals the cost of life insurance provided.
If the investment fund in which the remainder of the money is invested is unable to cover the cost of the benefits, the insurer may propose to reduce the amount of the insured or to increase the regular contributors.
In addition, some life insurance policies offer clients the opportunity to access certain illnesses or disabilities.
Also read: Top 5 Best Term Insurance Plans
Key features of whole life insurance:
This means that for a whole life insurance policy the amount of the premium is fixed and guaranteed and can not be changed during the life of the plan.
So, if you pay Rs. 2500 per month for your insurance, you pay Rs. 2500 per month forever.
Benefits of death:
In the case of the death of an insured life, the policy is still valid and all premium payments will be paid in full at the specified time.
The candidate receives the sum insured on the day of death and, if applicable, the cumulative premiums.
Protection for life:
A Whole Life Insurance plan is primarily intended to provide ownership of the insured’s heirs in the form of a payment of a sum insured and premiums, if applicable, upon death of the insured person.
However, the whole life insurance plan also provides for the payment of insurance premiums and premiums, possibly in the form of maturity applications at the end of a certain age or at the end of the payment period from the date of commencement of the contract.
Tax benefits 80 / I and 10 (10D) of the Income Tax Act 1961:
The premium paid for the insurance is exempt from income tax in accordance with § 80C EStG of 1961.
The payment made to the applicant / insured person is also exempted according to income tax § 10 (10D) of the Taxes Act. on the income of 1961.
The loan can be used against whole life insurance:
You can get a life insurance loan if it ends after 3 years. All traditional insurance policies such as the staff plan, the repayment policy and all can reclaim loans.
Types of whole life insurance:
There are a number of whole life insurance policies in the market. The most important types of life projects are listed below:
Ordinary life insurance::
This is the normal whole life insurance that you can buy yourself. This type of insurance is nothing more than a contract signed between you and the insurance company.
They continue to pay premiums to maintain the whole life insurance while the insurance company continues to provide cover.
In the event of death, the candidate receives a lump sum called death benefit. If you survive the term of the policy, you will receive a benefit benefit called expiration.
The premiums you pay, however, are slightly higher than a term insurance. The reason is that this type of whole life insurance has the level set by the plan’s plan.
The directive creates a present value through the term. Initially, the cost of the plan is higher than the amount guaranteed by term insurance.
Also read: Top 5 Life Insurance Plans In India
Whole life insurance paid:
Depending on this type of insurance policy, you have to pay premiums for a limited period of time.
For example, you only have to pay premiums for 20 years and take out insurance for 25 years and up to 100 years.
The benefit of using this plan is that you can earn premiums during a period in which you are still working and when you are in a better financial position.
After paying the premiums for the specified period, you do not have to worry because you will continue to receive coverage even if you do not pay the insurance company a premium.
This type of policy is appropriate for those who may not have the financial ability to pay premiums during their term.
With this plan you can take advantage of a whole life insurance, even if you can not finance the premium during your lifetime.
The premium payment is generally higher for these plans because the premium payment is shorter.
This is a very special kind of life policy that you might come across. This type of life insurance may be right for you if you want to pay the premium once and for all and still want to take advantage of the whole life insurance.
After payment of the premium, the policy remains in effect until the end of the insured lifetime.
After the death of the insured, the beneficiary receives the death benefit. These contracts can also have benefits at the age of 100 years.
Also read: Corporate Insurance Policy
The benefit of this policy is that you do not have to pay premiums on a regular basis. This can be helpful if paying your rewards in the last part of your life can be a financial burden on you.
- Unit Price: A whole life insurance plan in which a large sum of money is paid out to the beneficiary as a payment guarantee.
- While a single premium insurance is fully funded, the money invested accumulates quickly and offers a significant advantage even in the event of a sudden death of the insured.
- Indefinite premium: This is a kind of whole life insurance with two premiums. First, a guaranteed maximum rate and, second, a lower rate.
- The carrier calculates the lowest premium rate while the contract is being created for the first time. After maintaining this rate for a certain period of time, the insurer will use its own experience of mortality, interest and actual costs to set a new contribution rate that may differ from the previous contribution rate.
Modified premium whole life insurance:
In the early stages of politics, the price of these plans will be lower. For example, you can buy such a plan and pay lower premiums for at least five years.
You will then be asked to pay higher premiums for the remainder of the period in which the policy will be active.
These plans have a modest monetary component that the insured person can access and is exempt from tax-free.
This type of policy suits you if you start at the beginning of your career and do not have the financial opportunity to pay the highest premiums at the beginning.
As you will pay lower premiums in the first few years, you will continue to grow financially and will be able to pay higher premiums for the rest of your career.
Life insurance for survival:
This type of policy guarantees two people, usually spouses. If the second insured dies, the policy will be paid out to the beneficiary.
This directive is intended to protect both the life and the payment of benefits only after the transfer. These policies are generally cheaper than two separate life insurance policies.
Benefits of the Whole Life Policy:
Lifetime protection –
The insurance life covers does not end until the life insurance has been accepted. With this type of life insurance, constant premiums are maintained throughout the contract.
The policy is not deleted to diagnose illness or other health problems. The only requirement is that premiums must be paid if necessary.
A whole life policy at a young age can block a low premium rate for the entire duration.
NPV – These policies add up the value of withdrawing cash in the policy. The cash value can be used or deducted to reduce future premiums. Loans may also be available in relation to the present value of the policy.
Flexibility – Whole life insurance plans allow the insured to use the present value or leave it in the policy to further increase the value of the plan.
Possibility to use the loan – There are whole life insurance policies that also offer the possibility to take out a loan.
Tax Benefits – You may qualify for a tax exemption on premiums paid in accordance with Section 80C of the Income Tax Act 1961. exempted from tax in accordance with § 10 (10 D) of the Income Tax Act 1961.
Also read: Postal Life Insurance Plans In details
Eligibility criteria for the whole life insurance:
All insurance companies require individuals to meet certain criteria in order to qualify for a whole life insurance policy.
The general requirements are listed below, but differ from insurer to insurer.
- You should be at least 18 years old. Some packages are also available for children of 30 days.
- You must not exceed the age of 60 after joining.
- The maximum age at maturity is 100 years.
- The minimum insurance amount is approximately Rs. 50,000.
- You can pay the bonus in a bonus for a limited period or for the duration of the policy.
- The premiums are payable annually, over two years, quarterly or monthly.
- The minimum premiums can be up to Rs 500 per month.
Top Best whole life insurance plan in India:
Max Life All life Super Plan:
The Max Life Whole Life Super Plan is a life insurance policy that provides safe stroke protection up to the age of 100 plus additional premiums that help grow your investment. The plan is a limited premium payment that provides the opportunity to record additional notes and increase risk coverage.
The features of this plan are as follows:
- Maturity Benefit: At the end of the contract period, you will receive a guaranteed payment and any premiums you may have, such as the Maturity Benefit.
- Lump-sum death benefit: In the event of death during the insurance period, the applicant will receive a guaranteed payment and applicable death benefit premiums, and the policy will end.
- Bonus payment options: You can receive the annual cash bonus announced by Max Life Insurance in three different ways, depending on your needs.
- Terminal Illness Benefit: In the event of an incurable illness, 50% of the guaranteed period of disability will be paid immediately upon request by the insured person.
- Tax Benefit: You may be eligible for certain tax benefits for rewards and insurance benefits.
HDFC Life Sampoorn Samridhi Plus -Whole Life Insurance
HDFC Life The Sampoorn Samridhi Plus Plan offers the possibility to choose between a lump sum – a lump sum paid at the end of the policy and a lifelong endowment – a lump sum to be paid at the end of the policy plus the sum insured for 100 years.
The features of this plan are as follows:
- The Sampoorn Samridhi Plus Plan is part of the Par (Life) Fund, of which as of March 31, 2017, 22% was invested in equities. This participation takes place at Fund level and differs for individual contracts and varies throughout the policy.
- Limited bonus plan for employees with the option to extend the term to 100 years
- Payment period of the premium limited to the duration of the policy minus 5 years
- You have the option to choose an insurance period of 15 to 40 years.
- Guaranteed additions of up to 5% pa of the “Sum insured at maturity” for the first 5 years
- The plan participates in the profit of the participating fund in the form of a bonus for the first year
- Receive an additional sum insured in case of accidental death during the period of validity of the policy
- You have the option of determining the frequency of payment of the premium, monthly / quarterly / semi-annually / annually.
- Tax relief under sections 80C and 10 (10D) of the Income Tax Act 1961
Also read: How to Compare Life Insurance?
SBI Life Shubh Nivesh: Whole Life Insurance Plan
SBI Life Shubh Nivesh is an unrestricted capital insurance policy that offers a whole life insurance option. It is a savings income – an insurance plan that saves money for the future and benefits in the form of a lump sum regular payments.
The features of this plan are as follows:
- Ensure a life insurance of up to 30 years or a life span equivalent to your insurance needs
- Simple survival for the duration of the policy
- Two floor options: staff option and staffing with the whole life option
- Possibility to receive the insured base amount in the form of a lump sum or current income on maturity
- Get full coverage at an affordable price with three pilot options
IDBI Federal Lifesurance – a whole life insurance policy
IDBI’s state life insurance covers the whole life insurance plan as a plan for all seasons so you can live fully and realize your dreams with big profits. The first of these payments will be at the end of your premium payment period and the second when you are one hundred years old. In addition, with this policy you can leave a legacy of your family and your financial security in the event of absence.
The features of this plan are as follows:
- Protect your savings with guaranteed additions
- Extra bonus to increase your savings
- Get double protection with the benefit of accidental death
- Take advantage of the discount on the premiums
- Tax benefits on paid premiums received
- Maturity Guarantee: If the policy expires, you will receive the insured amount for the term plus the cumulative guaranteed benefits plus any repatriation premiums you may have purchased plus the final premium.
- Death benefit: In the event of the death of the insured person during the period of insurance, the benefit includes the death benefit and the benefits accrued up to the date of death, as well as the survivor’s benefit until the date of death. Date of death plus the intermediate bonus, if any, and the date bonus, if any.
Also read: LIC Term Insurance Plans
Whole Life Insurance Calculator:
A Whole life insurance calculator is a tool that gives you an estimated premium amount based on policies and selected techniques such as ownership, age, insurance amount, premium frequency, and more.
These calculators are available from official insurance companies for their exclusive product list.
The Life Insurance Corporation of India (LIC), for example, has its own premium calculator for life insurance. In general, a whole life insurance premium calculator contains the following fields in which you must provide information:
- Name of the plan
- Age of the applicant
- Rewards frequency
possession Knight, if there are any
The full form takes less than a minute, and once all required data and preferences have been entered, the estimated price data is displayed. The result is an estimate, as the insurer can get more details about your history, which can influence the price calculation
Article written By
Swapnil R. Chavan (Digital Marketing & SEO Expert)