What is whole life insurance?

Insurance has become a major part of our life. According to a survey by NITI Aayog, in 2022, about 70% people in India have taken health insurance coverage, only 30% of the total population is still deprived of health insurance.

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what is whole life insurance?

Whole life insurance is the insurance done for the whole life i.e. this policy is given for the whole 100 years. It is capable of providing insurance coverage to the policy holder till his death and is a type of life insurance. There is no fluctuation in the premium charged in whole life insurance, that is, whatever premium is made, it always remains the same.

If a person dies due to any reason before the completion of 100 years, then the family members of that person get the benefit of the whole life insurance policy. That is, under the contract of this policy, the ‘death benefit’ (benefit received after death) which would have been told, is fulfilled by the insurance company.

When the premium of the policyholder is completed then that policy becomes mature. If the life assured survives till the age of 100 years, then the amount equal to the amount of whole life insurance taken is given to that person. Or get every benefit of the policy which would have been said under the contract. Endowment coverage is primarily offered as a benefit. Apart from this, there are other benefits of this policy which are given below.

Benefits of Whole Life Insurance Policy

There are many advantages and benefits of Whole Life Insurance, mainly 5 to 6 types of benefits are available. This is the best life insurance which gives you the benefits after 3 years of premium deposit like availing a loan.

Ease of getting loan

If you want to avail loans easily, then whole life insurance can be a good option. You can apply for any type of secured loan after 3 years of depositing the premium for Whole Life Insurance.

Surrender Value

This surrender value can be either cash money or what the insurance company has said under the contract.

According to the instructions of the Insurance Regulatory and Development Authority (IRDA), if the policyholder terminates the whole life insurance policy after 5 years, then no surrender charge will be charged from that person.

Benefit Of Maturity

Whole life insurance has a term of 100 years. If the policy holder dies unfortunately, the ‘death benefit’ of the policy is given to the family of that person.

The period for depositing the premium of different companies may be different and it also depends on which plan of which company you are taking and what is your age at that time, according to which the premium period is decided. She goes.

The term of the premium is mainly 10 to 15 years. The policy matures when the premium payment term of the policyholder is over.

Apart from this, as long as the person is alive, his insurance remains, that is, risk coverage is provided till then. If the policyholder completes the age of 100 years, then according to the amount of insurance taken as a benefit, that person is repaid in the form of savings, that is, the benefit of the endowment plan is received.

If the person dies before 100 years, then the nominee is given that much money and some bonus.

Tax Exemption

The amount received as profit after the maturity of the whole life insurance policy is tax free under section 10(10D) of the Income Tax Act 1961, that is, the money that is given to you when the policy matures is not taxed.

Apart from this, if you come under the income tax net and pay the tax on time, then you can also claim your tax exemption.

benefits of term plan

In whole life insurance, you also get the benefit of term insurance policy. This is a good way to support yourself or your family financially. In this, you get a big life cover at a low premium rate, that is, you are given an assured (pre-decided) amount of money. With term plans, you can also add riders which provide you financial support in case of any critical illness or accident.

Whole life insurance premium

There are four options available for paying the premium for Whole Life Insurance. You can choose to pay the premium for this insurance yearly, half yearly, quarterly and monthly as per your convenience. If we talk about the minimum premium rate, then you can take whole life insurance policy even by paying Rs.500 per month i.e. Rs.6000 per year.

The premium rate varies from plan to plan and also your entry age. Each companies have different plans and the premium rate is fixed accordingly.

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