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Updated on Dec 15, 2022
If you want a policy that offers lifelong coverage, consider the Whole life insurance plan. This plan covers the insured for his/her entire life or up to 100 years provided the person keeps paying the premium on time. The plan allows the beneficiary to receive a guaranteed amount in the event of the demise of the policyholder during the policy tenure. The sum assured under this plan can be decided at the time of purchasing the policy. Further, if the insured outlives the duration of the term, which is 100 years, he/she is provided maturity benefit under matured endowment coverage. Under Whole Life Insurance, the policyholder needs to pay the premium for the first 10 to 15 years, while the coverage of life insurance is provided till the insured is alive.
Let’s take a whole life insurance example, if someone buys a whole life insurance policy at the age of 40 years, the person would make payment of the premium till the age of 55 years. However, the person will get life coverage for their entire lifetime. Since you need to pay the premium for a limited tenure of the policy, the premium amount of the whole life insurance tends to be high.
Also Read: 5 Best 50 Lakhs Term Life Insurance Policies in India
Read More: 5 Schemes to Revive Lapsed LIC Insurance Policy Online
The Whole life insurance policy is intended to cover the insured for the entire life and to make the person secured in terms of finances. This policy builds a financial cushion for the future to safeguard the insured against accidental deaths. The policyholder also receives maturity benefits under this plan. Further, there are many options of whole life insurance coverage provided by different insurers that you can choose from.
The functioning of the whole life insurance is simple like other plans. Here, a part of the premium paid by the policyholder is used by the insurer for investment purposes, while the rest is used for protection. If the amount used as investment earns a profit, the insured receives a bonus on the investment. This investment, that grows over time, is returned to the policyholder at the time of maturity of the plan or if the policyholder withdraws from the plan.
Hence, with whole life insurance the policyholder can create a mass of wealth along with getting life coverage for entire life. Thus, it serves as a good investment plan to consider.
Know More: Life Insurance Policy with Pre-Existing Health Condition
Below are some of the benefits of whole life insurance:
Here are some top whole life insurance plans available in India:
Whole Life Insurance Plan | Entry Age (Min. & Max.) | Age of Maturity | Tenure of policy (in yrs) | Sum Assured |
HDFC Life Sampoorna Samridhi Plus | 30 yrs min.
60 yrs max. |
75 | 15 to 40 yrs | Min. INR 65, 463
Max. No Limit |
Max Life Whole Life Super | 18 yrs min.
50 yrs max. |
100 | Up to 100 yrs | Min. INR 50,000
Max. No Limit |
Reliance Life Long Savings | 15 yrs min.
30 yrs max. |
70 | 15 to 30 yrs | Min. INR 80, 000
Max. No Limit |
SBI Life Shubh Nivesh | 18 yrs min.
60 yrs max. |
65 | 15 years (life cover till 100) | Min. INR 75, 000
Max. No Limit |
TATA AIA Life Insurance Fortune Maxima | 30 yrs min.
60 yrs max. |
100 | 100 yrs (minus age at the time policy purchase) | 1.5 times of single premium in case of single premium. Limited pay depends on policy terms and conditions |
Aegon Life Guaranteed Income Plan | 20 yrs min.
55 yrs max. |
85 | 85 yrs (age of entry) | Min. INR 1,00,000
Max. No Limit |
Star Union Daichi’s Jeevan Ashray | 8 yrs min.
50 yrs max. |
70 | 15 to 25 yrs | Min. INR 2,00, 000
Max. 50,00,000 |
PNB Metlife Whole Life Wealth Plan | 30 yrs min.
65 yrs max. |
99 | 99 yrs (minus age at the time policy purchase) | Multiples of SI depending on age of entry |
Below are Term VS Whole Life Insurance points:
Whole Life Insurance Plan | Term Plan |
It provides the double benefit of savings and investment. | Provides only death benefit |
It allow flexible tenure and is up to 100 years | It allows fixed tenure |
The premium paid is used as both protection and investment fund. Thus, the policyholder gets a share of bonus when a profit is made | It offers no such feature |
The premium amount of whole life is more | The premium amount is low |
Premium remains constant for the entire policy duration | It allows dynamic premium during policy premium |
It allow maturity benefit if the insured outlives the plan along with death benefit | No maturity benefit offered here, only death benefit |
Read More: Difference Between Whole Life Insurance and Term Life Insurance Policy
To Sum Up
Whole life insurance plan is also called a permanent insurance policy as it covers the policyholder for life. It also allows double advantages of life insurance along with maturity bonus. If you are planning to buy a whole life insurance plan, do not forget to compare plans to receive the best benefits from the best policy.
Also read: Step by Step Process to Check LIC Policy Status Without Registration
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