What is Whole Life Insurance

Whole life insurance is very similar to a typical life insurance plan that offers your family protective coverage for up to 100 years or for their entire lifespan. By purchasing a whole life insurance policy, one gets to protect the family for the entire life without having to worry about the policy expiring after a specific term and stressing about the midway insurance plan renewal.

Fixed Premiums Along With A Fixed Death Benefit

In many cases, it has been observed that the premium and the death benefit of whole life insurance stay constant. Since whole life insurance provides fixed premiums and death benefits, you need not stress about an increase in the premiums when you get older. As for your loved ones, they will also know what to expect when the insurance benefit gets paid out after your demise.

Compared to other insurance policies, the whole life insurance policy does have a longer premium payment term. It's advisable to use a premium calculator to find affordable premiums for life insurance, which can secure your family with a good amount of assured sum.

Features and Benefits of a Whole Life Insurance Policy

Premium Payments:  

When talking about whole life insurance, the premium amount is not only very affordable, but the earlier you purchase the policy, the more the amount will go down. If you are able to survive the policy term, then this insurance policy has a maturity benefit, and you will get the premium sum or the maturity benefits along with it. This amount will sustain your family and also cater to other financial goals.

Loan facility: 

This facility will help you receive extra monetary support that will cater to your financial needs and goals. Over time, the insurance policy's surrender value increases, and anyone can borrow against the policy’s surrender value. This alternative is comparatively better than borrowing from retirement or home accounts. Just ensure that certain terms and conditions are met!

Lifetime coverage:  

As long as the premiums are paid on time, the insured person will be getting comprehensive life coverage, unlike other life insurance plans that are fixed for a particular period of time. With a whole-life policy, your family is covered for 100 years, and in this way, you get to keep your loved ones secure from the uncertainties of life.

Financial protection: 

A whole life insurance policy can offer financial security to your family. This happens because of the financial safety net, which is the predetermined sum that’s assured to the policyholder under the policy. During the policy term and in the event of your death, the assured sum is offered to the family members of the policyholder (that’s you) as a monthly income or as a lump sum amount that can help them be financially solvent even after your demise. To avail of this death benefit, ensure that the premiums are paid regularly and the policy has not yet been surrendered.

Estate Creation: 

This insurance can also be used as a part of estate planning to cover estate taxes and also offer liquidity when the policyholder passes away. The cash value component of the policy can be used to fund financial goals like charitable giving and gifting.

Optional Riders: 

Riders cover risks like accidental death, critical illnesses, and so on. This ensures that throughout the term of the whole life insurance policy, the family is secured under a comprehensive plan. Riders come at a nominal, yet additional, cost and can be added as per specific needs.

Tax benefits: 

As per prevailing tax laws, the whole life insurance policy is eligible for tax benefits.

Types Of Whole Life Insurance Policies

There are plenty of kinds of whole life insurance policies that are available, and each of them is designed to meet your specific requirements.

Non-participating whole life insurance

This policy has a face amount and a level premium during the entire life of the policyholder. Fixed costs and affordable premium payments are some of its advantages. As the policy is non-participating, don't expect any dividends.

Participating whole-life insurance

The most defining feature of this policy is that you will receive dividends. The excess earnings accumulated via investments by the company come as dividends to the policyholders. However, there is no guarantee that one will receive the dividend. Mostly, the dividends are paid in cash and used to bring down the premium amount, or else they're allowed to accumulate to attract interest at a specific rate. Under the two main categories of non-participating and participating, there are several kinds of whole-life policies:

Modified premium whole life insurance

This kind of permanent whole life insurance offers the policyholder low premiums in the first few years, but after the introductory period, the rate of the premiums will increase. It offers full coverage but has a different premium structure. Both premiums and death benefit amounts are adjustable.

Who Should Buy Whole Life Insurance Plans in Kolkata?

At Inbest, we can design whole life insurance plans in Kolkata to meet your divergent needs. A few categories of policyholders can highly benefit from whole life insurance plans:

People seeking security for the future

Does your family depend on your income for sustenance? Then, a whole life insurance plan is a great choice to secure their future, especially if there is an unfortunate incident that can create a loss of income.

Investors who want to have a secure financial plan

By investing in the whole life policy via premium payments, you can secure the future of your family. After planning the premium payments, just allocate the resources to other investments, and with the return of the premium feature, you also get the premium sum of money back.

Secure against life-threatening diseases

If you and your family have a history of critical illnesses, then a whole life insurance plan can ensure financial stability in case there is any unfortunate incident.

Young professionals

People who have just started off with their careers and would be able to make premium payments for a longer time going into the future can invest in a whole life insurance policy.

Individuals seeking tax benefits

Whole-life insurance provides a lot of tax advantages under various sections. By investing in this policy, you not only have greater tax savings but also good life insurance coverage.

Invest To Secure Your Future!

Consider investing in a whole life insurance plan while you are young, as it will lead to substantial savings because premiums are low for the youth of India. A whole life insurance plan can ensure your family is taken care of after your demise. However, do consider the needs of your family and yours before deciding on the sum assured. Consult with the experts at Inbest to get the best advice.

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