Whole Life Plan
Financial Security of the Family and the loved ones
The Whole life insurance plans are a type of life insurance plan that provides insurance coverage to the policyholder for the whole life, i.e., up to 100 years of age, with a limited premium payment period. A whole life insurance plan offers a guaranteed death benefit to the policy's beneficiary in the event of an unfortunate demise of the policyholder during the policy's tenure. The insurance holder can decide the sum assured amount at the policy purchase.
A whole life insurance policy covers as long as you live, and the paid premium with bonus gets payable on maturity. Thus it gives the dual benefit of life coverage and returns in a reward. For instance, if you are 30 years old and opt for the whole life plan for 15 years, whose sum assured is Rs 30 lakh; you would stop paying a premium when you are 45 years of age. One would receive a lump sum amount at 45 years, but the coverage would last for your entire life. The premium is paid only for a limited duration; therefore, the premium is higher than any endowment plan. The plan is suitable for all bread earners who want security for their family in a situation of any eventuality. The plan gives the comfort of accumulating savings payable on maturity with the bonus. And the amount could link to any financial goal- retirement, Children's education or marriage and any other.
BENEFITS OF WHOLE LIFE INSURANCE POLICY :
Whole Life Coverage: Whole life insurance provides coverage to the policyholder until 100 years of age. The policy protects the insured until death.
Guaranteed Life Coverage: The whole life insurance assures the financial security of the family and the loved ones even in the absence of the breadwinner of the family.
Periodic Payments: At the time of policy maturity, the policyholder receives the lump-sum amount as maturity benefit along with the bonuses, if any. Moreover, some whole life insurance plans also offer maturity benefits in regular income. Thus, at the time of maturity of the policy, the insured can choose to avail the maturity benefit as a lump-sum amount at one go or as regular income at specific intervals of time.
Tax Benefits: The insured can avail of tax exemption under section 80C on the premium paid towards the whole life insurance policy. Moreover, the maturity claims are tax exempted under section 10(10D) of ITA 1961.
It is advisable to buy a sizable SA policy to give a decent amount of accumulation to fulfil any financial obligation. A good amount can be left behind as an inheritance for the family. The policy works both when you are alive and not in the world. You can maintain a nominee in policy who would be the claimant of the sum assured, and one can change the nominee as many times one wishes during the tenure of the policy. The policy justifies the motto of the life insurance plan: Zindagi ke saath bhi, Zindagi ke Baad bhi...