Whole Life Insurance Plan

Whole Life Insurance Plan: Whole Life Insurance Plan is another superfine product of Life Insurance Industry. We can say it’s another pure insurance plan after Term-Plan. In Whole Life Insurance Plan, Life of Insured covers till the age of 100 years or can say for entire life of the insured person.

Some companies offers increasing sum-assured while some companies offers level sum-assured per their bonuses and re-investment of bonuses.

So, whenever plan to purchase a Whole Life Insurance Policy, check whether it’s leveled sum-assured or increasing sum-assured, premium wise there is no extra premium for increasing sum-assured, but the sum-assured increased at high rate year by year.

For example, if Mr A attended his 18 years, and planned to buy Whole Life Policy, with at least Rs 15,000/- (you can select ) per year for 20 Years, then his initial sum-assured will be around Rs 8.5 Lacs from day one and can you assume what will be the sum-assured or maturity at age of 100 year!!!!! Rs 1.15 Cr, yes can you get this maturity somewhere else? Never.

There is another unbeatable benefit over the Term-Insurance; there interest free emergency withdrawals allowed. And your Insurance Policy will behave like an ATM machine of your own, for your entire life and asset for your beloved family after your life.

In insurance industry, there may be market linked or traditional plans, if, you have appetite to bear the risk you can choose market linked plan otherwise you can choose Traditional Participating plan for safe side.

Income tax exemptions and tax free returns also there under section 80(c) and under section 10(10D) respectively. So , there you will have multiple benefits in a single life insurance policy;

  1. Tax Exemption
  2. Tax Free emergency withdrawals
  3. Long term savings
  4. Life time insurance cover, till age of 100 years
  5. Family’s financial security
  6. Monetary asset for the family after you
  7. High sum-assured in comparison to other insurance policies where investment included (Term Plan not treated as investment plan, so we not compare with that)
  8. Entry age is 18 to 60 years but maturity is fixed at 100 years

Whole life insurance plan is for the people too, who says,”what will mishap with me till age of 75″.

Amit Saxena

Financial & Insurance Consultant
MaxLife Insurance Co Ltd & MaxBupa Health Insurance

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