Whole Life Plan
As the name suggests, whole life insurance is for the whole life and not just for a specified period, as in term insurance.As there is no fixed end date for the policy, only the death benefit exists and is paid to the named beneficiary. The policyholder is not entitled to any money during his or her own lifetime, i.e. there is no survival benefit.
Compare whole life policies on Apnapaisa.com, an option that can be used either for the purpose of leaving behind an estate for one's heirs. Or, for covering the possibility of premature stoppage of pension income in the case of relatively early death after retirement.
Whole Life: Benefits
Children's Life Insurance Policies
Children's life insurance policies provide cover for the child's parent/guardian/grandparent for a specified term. That is, if the parent, guardian, or grandparent were to pass on, the child's future is not put in jeopardy.
In the event of such an occurrence, the child receives the sum assured in the policy plus bonus/participating profit/guaranteed addition, if any, or the value of the investments, at a pre-determined age. Generally, children's policies are calculated to mature at specific, important events in the child's life, such as attaining college-going age or the wedding.
This money is receivable irrespective of whether the proposer i.e. the parent/guardian/grandparent survives the term of the policy.
In case of a money back policy, the child receives fixed portions of the sum assured at regular intervals. On maturity, the child receives the balance sum assured, if any, plus the bonus/participating profit/guaranteed addition, if any, or the value of investments, whichever is higher.
In the event of death of the proposer, the policy continues and usually no further premiums need to be paid. On maturity i.e. at a pre-determined age, the policy continues and the child receives the sum assured plus bonus/participating profit/guaranteed addition, if any, or the value of the investment, depending on the type of policy purchased.
Whole Life Insurance Plans
Whole life insurance plans typically provide life insurance cover for the entire life of the insured person or up to a specified age. This kind of life insurance plan does not typically offer survival benefit as there is no definitive term to the policy.
On the death of the insured, the nominee usually receives the sum assured plus the bonus or the profit, if any. With some policies, the nominee might receive just the sum assured.
In case of a unit-linked whole life plan, the nominee receives the value of the investments or the sum assured, whichever is higher.
Although they typically offer no survival benefits, the insured can make withdrawals or take loans against the cash value of the policy. The cash value is the profit or bonus earne
Some policies provide survival benefits if the insured lives up to the age of 80. On maturity, the insured receives the sum assured plus the bonus for the term of the policy.
The premium for a Whole Life policy is usually paid for a longer duration of time (since the insurance coverage term is longer). However, some companies offer the insured with a portfolio choice of selecting the premium paying terms.
The practical utility of whole life plans is that they can be used to leave behind an estate for one's heir(s). Certain whole life policies also offer the flexibility of regular withdrawals after a certain age.