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Whole Life Insurance
Secondly, we will understand the concept of ‘Whole Life Insurance’ policy.
What is Whole Life Insurance? Explain its features.
The term 'Whole Life' itself suggests the policy covers as long as the person (insured) lives. The premium is either paid for a limited duration or throughout the lifetime but, the insurance covers the entire life of the policyholder.
The payment under the policy is assured and paid at maturity of the policy which is usually 100 years of age or earlier in the event of death.
These policies are mainly useful for planning one’s estate (succession planning) which is not the priority for most of the Indians.
But these policies are not very popular because they do not meet the expectations and changing needs of many investors, who look at insurance as an investment option.
This type of policy requires premium payment to be made indefinitely and the policyholder may find it difficult to continue the premium payment during his old age.
