Benefits of Whole Life Insurance Policy in India

A whole life insurance policy, often known as perpetual life insurance, offers protection up until the life assured's demise. As long as the life assured pays the premiums, the policy remains in effect.

Benefits of Whole Life Insurance Policy

Cover For Life

Up to the life assured's passing, a whole life plan offers coverage. The insured is protected from the possibility of passing away for the rest of his life or until he is 100 years.

Assurance Of Coverage

Who would take care of your dependents in the event that you—the breadwinner—passed away? The family's financial security is guaranteed by the complete life insurance coverage.

Periodic Payments

Under the endowment option, you receive the promised amount along with the collected bonuses as a lump sum upon policy maturity. As an alternative, some plans also provide you with periodic payments as survival benefits. This means that a lump sum payment of the entire bonus earned up to the end of the premium payment term is made, and from there, a percentage of the sum assured is paid out each year the life insured is insured or until the policy's term is up.

Tax Benefits

The premium paid towards the policy is tax exempted under the Section 80C of Income Tax Act, 1961. The payout paid to the nominee is tax free under the Section 10(10D) of Income Tax Act, 1961.

Serves as A Source of Cash

According to experts, consumers should typically save away six to nine months' worth of spending in liquid form to use in emergencies like illness or job loss. Even if it is difficult to keep such a sizable cash reserve, a whole-life plan provides a sizable sum that is received at the conclusion of the premium payment term.

Loan Option Available On Your Whole Life Plan Policy

According to experts, consumers should typically save away six to nine months' worth of spending in liquid form to use in emergencies like illness or job loss. Even if it is difficult to keep such a sizable cash reserve, a whole-life plan provides a sizable sum that is received at the conclusion of the premium payment term.

Your Dependents Will Benefit from This Plan

You have a lot of options for ensuring your legacy for the future, including whole life plans. For instance, a joint whole-life plan will provide an additional financial resource that may be relied upon in the later stages of retirement. The surviving spouse will get the policy death benefit in the event that one of the spouses passes away.

Additionally, once the insured individual passes away, the spouse's policy will continue to provide a minimum bequest to children or grandchildren. The building of wealth and its transfer to the heirs can therefore be planned out in the future with the use of whole-life plans.

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