Whole Life Insurance
Whole Life Insurance policy offers a humble combination of endowment plan + term insurance. Unlike a term cover that is payable only on death and expires at the end of policy term, the life cover of the Whole Life Insurance continues even after the policy term. It also offers the feature of annual repayment in form of survival benefits from the end of policy term till the policy holder turns 100.
Thus, the policy holder enjoys Survival Benefits/ Maturity Benefits/ Death Benefits, depending upon the survival or death of the policy holder.
Whole Life Insurance offers numerous benefits including:
- Survival Benefits: A Whole Life Insurance plan is a potent tool for long term saving. Usually available till the policy holder turns 100, it is the best way to save for future. So, if the policy holder lives past the policy term, he/she enjoy survival benefits till they turn 100.
- Death Benefits: In case of untimely death of the policy holder, death benefits are passed on to the nominee. The lump sum payment received as a claim for a whole life policy eases the financial stress of the dependents.
- Maturity Benefits: If the policy holder lives past100 years of age, the policyholder receives policy return i.e. Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
Tax Benefits: All premiums paid and claims received under a term insurance plan are exempted under Section 80C and Section 10(10D) respectively of the Income Tax Act 1961.