Whole Life Insurance Plans
Whole life insurance plans is a type of life insurance contract which provides insurance coverage to policyholder for his or her entire life. Whole life insurance plans is a form of permanent life insurance which provides guaranteed premiums, cash value and death benefits. Whole life insurance plan is life insurance contract with level premiums which is combination of both an insurance and an investment component. The insurance cover pays a specified amount upon death of the policyholder. The investment component accumulates a cash value that the insured can withdraw or borrow against. Whole life insurance plan is a way to accumulate wealth as regular premiums insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax deferred. Whole life insurance plan provides to receive dividends that increases the value of the policy when the insured is living or provide an increased death benefit for your beneficiaries. For more information regarding Income Tax Benefits, visit www.taxqueries.in.
Whole Life Insurance Plans Benefits:
- Provides Protection for entire life
- As living benefit, the policyholder gets cash value.
- The premiums in whole life insurance plans go towards a cash value as well as a death benefit but term life insurance has only a death benefit.
Example of Whole Life Insurance Plans: Suppose, a person aged 40 years buys a whole life insurance plans paying premiums. In some cases whole life insurance premiums are 3 to 5 times as much as term life premiums. Whole life insurance premiums are initially higher but later there is no increments in premium. The Whole life insurance policy is designed for the entire life of the policyholder and as long as you keep paying the premiums, the policy will be in force regardless of health and age. The policyholder will receive cash value as living benefit or in case of unfortunate death of the policyholder, the nominee will receive death benefit as beneficiaries.