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What Is Whole Life Insurance? A Comprehensive Explanation

By Finserv MARKETS - Aug 23,2019
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whole life insurance

Also known as a standard life or a straight life plan, a Whole Life plan stays throughout your lifetime until the premiums are paid. Whole life insurance is a type of unit linked insurance plan where a fixed amount of money is paid to the nominee if the insured dies. The policyholder also has the option to pull back the policy or borrow money against it. The Whole Life policy matures at 100 years. If the insured person lives past the maturity age, the policy will return a matured amount. The plan also has tax-free death benefits.

How does Whole Life plan work?

If you often search for Whole Life insurance meaning on the internet, then you must know that Whole life insurance plans are quite different from general life insurance plans. Figuring out how they work can help you decide if they are the right choice for you or not. You can acquire a Whole Life plan against a payment which you can make as a one-off, monthly, or yearly payment.

Whole life insurance plans on Finserv MARKETS offer to cover risk through your entire life, with the added benefit of a bonus. The insurance premium is paid for the initial 10-15 years of acquiring the policy. Post that, the insurance cover is extended until the person is alive.

For example, if you get a Whole Life plan at thirty years of age with a sum assured of Rs 30 lakh, then you keep on paying the premium until you are 45 years of age. It is always advisable to get a Whole Life insurance at an earlier period as the costs of the premium come down.

Benefits of Whole Life insurance

Now that you know the answer to your query of ‘whole life insurance meaning,’ let us look at the benefits it brings forward.

  • It pays as well as protects
  • The premium you pay is stable throughout the insurance tenure
  • Whole Life plan is that it comes with the option to add riders to customize the coverage
  • The premiums that are paid under life insurance are exempted under section 80C of the Income Tax Act
  • You also have the option to take a loan against the current maturity value of your Whole Life policy

The list of benefits carries on. It also enables you to surrender the policy before the maturity time, and for that day, the maturity value is paid to you with some deductions in the amount. Most of the insurers that provide a Whole Life plan also allow you to avail the benefits of the policy until the point that you surrender the policy.

Should you choose Whole Life Insurance?

If you want to create a financial stronghold for the future, then you should definitely go ahead with Whole Life insurance available on Finserv MARKETS. This plan is for anyone who wants to get returns on their investments along with the assured benefit of life coverage. It is also beneficial for those individuals who are looking forward to accumulating some wealth towards the end of their retirement. Overall, this plan is an excellent investment opportunity as it gives you the option of saving on your taxes — an added income advantage. If you are someone who has just begun your career and looking forward to making premium installments for a long time, then this plan is definitely for you.

Added advantage: Whole Life Policy Riders

Most whole life insurance plans come with specific riders that help you to upgrade on the existing benefits of your policy. Some of the most popular riders come to cover your basic ailment, emergency clinic money, and premium waiver, among others. Each of these riders come with unique benefits that you can avail during your policy period, depending on your needs at that point in time.

Conclusion

Your ‘Whole Life Insurance meaning’ query might be resolved now. To summarize, this insurance policy is quite essential for the long-term growth of your financial assets. Since life has countless emergencies, these policies also act as an emergency cash reserve. With the added benefits of riders, you can customize your policy accordingly to serve you with the most accessible benefits. The Bajaj Allianz Lifelong Assure, a Whole Life Insurance plan available on Finserv MARKETS, really stands out by bringing to you the benefits of guaranteed cash back, a cash bonus starting from the end of 6th policy year and death benefit of up to 300% of sum assured.

Also read about ULIP tax benefits that you can avail through this whole life policy.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522