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

Whole life insurance plans provide 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.

life insurance

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 policyholders. Under these, there are various plans specifically tailored to cater to the different requirements of the insured. Let’s get to know the other insurance plans available and understand multiple life insurance policy details.

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 the 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 profit from market performances.

Unit-Linked/Flexible

The offered insurance plan is similar to the one mentioned above except for the periodic review option. Under this plan, the insurance provider reviews the policy periodically to ensure the insurance value 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 financed 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 policyholder’s demise.

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. Still, you choose to get it as cash or utilize the same amount to bring down the interest rate or your monthly premium whenever you receive it.

Under the category of participating and non-participating whole life insurance, there are several insurance plans that you can receive multiple full 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 the initial years, your premium amount is sufficient to cover insurance protection costs, but it decreases in the later years, and that’s where the surplus funds come to the rescue.

Limited Payment

Here insurance plans come very handily as you need to pay the premium for a limited period but 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 payments at once. You can make the payment when issuing the insurance policy and don’t need to pay a premium afterward. This is considered an investment insurance plan, and the loan value and immediate cash value are determined based on 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 compensation on those parameters and issues a new tip for you.

Who Should Buy This?

These plans are an excellent choice for anyone seeking lifetime protection from 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.