What is Whole Life Insurance

A whole life insurance helps to cover people for their entire life instead of the term insurance policy that provides coverage only for a specific period of time. 

Any person can take the benefit to being served with the coverage for his or her whole life and that too at the same rate of premium as charged for other term insurance policy covers.

There are different kinds of whole policy covers like traditional, single premiums and charged interest policies. A traditional policy offers a minimum guaranteed cash return on the value of cash that a person tend to spend on a specific policy by way of a premium.

Single premium is the policy that demands one time premium payment in a lump sum. Thus, it benefits the people who have sufficient amount to spend on the policy coverage and purchase it on upfront basis. Single premium policy also has an additional benefit of tax returns.

The interest policy provides a variable rate of cash return over the value of your cash. This policy provides death benefits depending upon the inflation or deflation and the rate of cash value return portion of the policy holder. In this policy a person can also avail the benefit of constant premium till the time the policy remains active.

There is also a limited whole life policy for the people who are doubtful of their consistent earning capacity and would like to discontinue the policy after a specific period of time.

A policy holder can avail considerably a lower return rate in a whole life policy when compared to other term policies and investments. A person can acquire additional benefits of tax savings in whole life insurance coverage.

A person needs to however pay a regular premium or a single premium in order to avail the offer of whole life coverage policy.

 Benefits of a Whole Life insurance policy:

  • Caters to the entire needs of the family including any mortgage cost, income loss, educational needs and death loss too
  • An easier access to enjoy the life’s opportunities through an effective cash value
  • Leaving a sufficient amount for the dependents too

The whole life insurance premium will be paid by the policy holder till his death and the amount is then disbursed off to the claimants or the nominee of the policyholder. Many companies also pay the policy amount assured after a policy holder reached a specific age.

Many people believe in taking the policy that offers a good protection rather than a profitable rate of policy returns. However, a whole life insurance assures to offer an added bonus of cash value and tax benefits besides giving protection for you and your family.