Different Types of Whole Life insurance Policies Explained

What Is Whole Life Insurance?

8 Types of Whole Life Insurance Policies

Frequently Asked Questions

What are the Benefits of a Whole Life Insurance Plan? up-arrow

Whole life insurance plans come with several benefits, such as:

  • Financial coverage for the entirety of your life.

  • Guaranteed returns in the form of the death benefit or maturity benefit.

  • Non-guaranteed but substantial benefits if you opt for participating insurance plan.

  • Stable premiums that are far more affordable if you purchase at a young age.

  • Accumulated cash value that can reduce your premium or be withdrawn.

  • Availability of loans against the cash value

  • Tax benefits up to ₹1.5 Lakhs under Section 80C of the Income Tax Act of 1961

Are Rider Charges Included in the Insurance Premium I Pay? up-arrow

No, if you want to add a rider to your existing whole life plan, it will come with additional charges. However, you can contact your provider to know about the rider options and their charges. 

Do I Need to Renew a Whole Life Insurance Plan? up-arrow

No, since a whole-life plan is a permanent insurance, your policy remains in force as long as you pay your premiums regularly. However, if you miss to pay your premium in time, even after the grace period expires, the policy lapses. 

Can I Take a Loan Against my Whole Life Insurance Policy? up-arrow

A whole life insurance policy offers cash value with no expiration date, making it possible for you to borrow money against the policy quickly. First, however, you should consult your insurer for further information about borrowing against your whole life insurance policy.