life insurance

Do You Know All the Plans Whole Life Insurance Has to Offer?

By

Summary –

Whole life insurance plans are known for providing lifetime protection to the policyholder and offer quite a range of policies for the same. This article talks about the various insurance plans offered and their importance in specific situations.

Body –

Life insurance plans gave a history of protecting the lives of loved ones after the demise of the sole breadwinner in the family. With their accumulated cash amount, these plans have been greatly helping the loved ones to realize their dreams even in the absence of policyholder. Under these, there are various plans specifically tailored to cater to the different requirement of the insured. Let’s get to know the different insurance plans available and understand various life insurance policy details as well.

Unit-Linked

Under these insurance plans, you need to pay a fixed premium from which a certain amount will be deposited to grow with time and remainder will be invested into the market to earn profits. These plans are a good option for those who have little interest in the stock market and know how to make a profit from market performances.

Unit-Linked/Flexible

The offered insurance plan is similar to above-mentioned one except for the periodic review option. Under this plan, the insurance provider reviews the policy periodically to ensure the value of insurance is equal to the sum assured.

Investment Fund

Under these plans, the insurance provider will offer their advice if your remainder amount invested in the market isn’t gaining profits for long. They will advise you to either decrease the amount invested in the market or increase the premium amount.

Disease-Specific Whole Life Insurance

These insurance plans have been proved very beneficial to the buyers and have been protecting the loved ones from a financial crisis after the demise of the policyholder.

Apart from these, there are two main categories of life insurance plans:

Non-Participating Whole Life Insurance

These are the cheap life insurance plans, where you pay a fixed premium every month and they provide your loved ones an amount assured at the time of purchase. As these are non-participating plans, they don’t pay you any dividends.

Participating Whole Life Insurance

These insurance plans are the same as the non-participating whole insurance plans, except the dividend part. Here, you receive a divided on the excess earnings the insurance provider has made on their investments. However, it is guaranteed that you will receive a dividend on every earning but whenever you receive, you choose to get it as cash or utilize the same amount to bring down the interest rate or your monthly premium.

Under the category of participating and non-participating whole life insurance as well, there are several insurance plans that you can receive multiple whole life insurance quotes for, just by sending a request on insurance portals.

Level Premium

As it’s clear by the name, you need to pay a fixed monthly premium to your insurance provider and they will help your loved ones with a sum assured to fight their financial challenges. In initial years, your premium amount is sufficient to take care of insurance protection costs, but it decreases in the later years and that’s where the surplus funds come to rescue.

Limited Payment

Here insurance plans come very handy as you need to pay the premium for a limited period but will receive protection for life. However, these plans have a higher insurance premium than traditional life insurance plans. Usually, these plans are offered for 10 or 20 years.

Single Premium

Under these policies, you can receive protection for life by making all the payment at once. You can make the payment at the time of issuing the insurance policy and don’t need to pay premium afterward. Basically, this is considered an investment insurance plan and the loan value, as well as immediate cash value, is determined on the basis of the amount you have invested.

Indeterminate Premium

These plans are more like an ordinary insurance plan except the premium adjustment option. They let you adjust your premiums depending on the profits made and other possible expenses. Usually, it’s your provider that reviews the existing premium on those parameters and issues a new premium for you.

Who Should Buy This?

These plans are a great choice for anyone seeking lifetime protection from the unforeseen incidents of life. Even if you secured your post-retirement life and are looking for ways to invest your money, whole life insurance plans are very apt for them. Also, if you are a young professional, you can buy a plan to ensure a better future for your loved ones.

You may also like