Whole life insurance plans are a type of life insurance plan which provides insurance coverage to the policyholder for the whole life i.e. up to 100 years of age, provided the policyholder pays the premiums of the policy on time. A whole life insurance plan offers a guaranteed death benefit to the beneficiary of the policy in the event of an unfortunate demise of the policyholder during the tenure of the policy. The insurance holder can decide the sum assured amount at the time of policy purchase.

A whole life insurance policy covers as long as you live. As it offers risk coverage for the entire life, It offers the dual benefit of life coverage and bonus. The premium is paid for the first 10-15 years and the insurance cover is extended for the entire life of the insured. For instance, if you are 30 years old and you opt for the whole life plan whose sum assured is Rs 30 lakh, then you would stop paying a premium when you are 45 years of age but the coverage would last for your entire life. The premium is paid only for a limited duration and therefore, it is high. Without having proper insurance coverage one can always be exposed to financial uncertainties in life. Thus, to safeguard the family financially it is very important to have a life insurance plan.

  • A whole life insurance policy: It is a type of life insurance policy. Whole life insurance protects the insured against death, whenever it may happen. It means that there is no fixed term under whole life insurance. Most policies provide a dividend to the policyholder which helps with retirement. Whole life policies provide insurance until the death of the insured person. Whole life policies are classified into.

  • Non-Participating Whole Life Insurance: This is a low-cost life insurance policy that offers the feature of face amount and level premium. As a non-participating policy, the plan does not pay any dividends nor does receive any bonus facility. 

  • Pure Whole Life Insurance: Under this plan option, the premiums are paid continuously throughout the life of the insured until death. Risk coverage is for the entire duration of life and the sum assured is paid after the death of the insured.

  • Limited Payment Whole Life Insurance: Under this plan option, the policyholders are required to pay the premium of the policy regularly for the entire tenure of the plan. The premium of the policy remains constant for the whole tenure of the plan. Where the insured pays a fixed number of premiums for a specific number of years or till he/she reaches a specific age. Risk coverage is however throughout the life of the insured.

  • Single-Premium Whole Life Insurance: Under this plan option, the entire premium of the policy is paid at one go. Under this plan option, a large sum assured amount is paid as a guaranteed payment to the beneficiary of the 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 of the whole life insurance plans also offer maturity benefits in the form of regular income. Thus, at the time of maturity of the policy, the insured can choose the avail of 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 also tax exempted under section 10(10D) of ITA 1961.



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