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    Whole Life Insurance Plans

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    What Is A Whole Life Policy?

    A whole life policy is a type of life insurance that provides guaranteed death benefits during the entire life of the policyholder. The coverage is extended for as long as the insured lives, as long as the premiums are paid up and the policy is not surrendered. These plans are designed to cater to those who do not want a fixed tenure, but rather have insurance cover till whenever they meet their demise. The policy will also build up a cash value which makes the premiums higher than some other plans.

    Best Whole Life Plans in India:

    There are many whole life insurance policies available in the Indian market. These policies cater to varied needs of customers and their families. Depending on your requirements, you can choose from a wide range of policies. To make an informed choice, portals such as BankBazaar give the customer the opportunity to view and compare various policies. Some of the top policies have been listed below:

    Whole Life Plans Entry Age Maturity Age Minimum Sum Assured Policy Term Premium Paying Term Minimum Premium Maximum Premium
    SBI Life - Shubh Nivesh 18 years to 50 years 100 years Rs.75,000 (x1,000) 100 years minus age at entry Single Premium or Same as policy term. Payable as Single Pay, Yearly, Half-yearly, Quarterly, Monthly Single Pay - based on minimum sum assured. Yearly - Rs.6,000 Half-yearly - Rs.3,000 Quarterly - Rs.1,500 Monthly - Rs.500 No limit subject to underwriting approval
    Max Life Whole Life Super 18 years to 60 years 100 years Rs.50,000 100 years minus age at entry 10 years, 15 years or 20 years. Payable monthly, quarterly, bi-annually or annually Rs.8,500 p.a. Excluding taxes and other charges No limit subject to underwriting approval
    IDBI Federal Lifesurance Whole Life Savings Insurance Plan 18 years to 55 years 100 years No limit subject to underwriting approval 100 years minus age at entry 12 years up to 30 years. Payable monthly, quarterly, bi-annually or annually Rs.10,000 p.a. (Rs.12,000 p.a. for monthly mode) No limit subject to underwriting approval
    HDFC Life Sampoorn Samridhi Plus - Whole Life Insurance 30 days to 60 years 18 years to 75 years with an option to extend up to 100 years Rs.65,463 15 years to 40 years Policy term minus 5 years. Payable monthly, quarterly, bi-annually or annually Monthly -Rs.1,000 Quarterly - Rs.3,000 Bi-annually - Rs.6,000 Annually - Rs.12,000 No limit subject to underwriting approval

    SBI Life - Shubh Nivesh:

    This whole life plan from SBI Life caters to those between the ages of 18 years and 50 years. Life cover extends up to the age of 100 years. This non-linked with profit endowment assurance plan is designed to give customers the benefits of income, savings and insurance.

    Max Life Whole Life Super:

    The Max Life Whole Life Super Plan offers guaranteed financial protection up to the age of 100 years along with bonuses. Policyholders are entitled to maturity benefits, death benefits, terminal illness benefits and tax benefits.

    IDBI Federal Lifesurance Whole Life Savings Insurance Plan:

    This plan offers life cover up to the age of 100 years with a lump sum payout benefit at the end of the premium payment term. Additions and bonuses also help boost the savings under this plan. Customers have the option of Accidental Death Benefit as well.

    HDFC Life Sampoorn Samridhi Plus - Whole Life Insurance:

    This plan is a limited premium endowment plan which has the option to stretch the life cover up to the age of 100. Customers only have to pay premiums for the policy term minus 5 years. Guaranteed additions for the first five years and profit participation are some of the benefits of this plan.

    How does it Work?

    A whole life insurance policy has a tenure that extends up to the age of 100 years. As long as the premiums are paid, the policy will be in force. The policy will set an amount of financial coverage aside for the life insured. Upon the death of the insured, the family or nominee will be entitled to the death benefit. If the person survives up to the age of 100, then the insured will receive a maturity benefit.

    Types of Whole Life Policy:

    There are a number of whole life policies in the market. The major types of whole life plans have been listed below:

    Ordinary whole life insurance

    This type of whole life insurance has level premiums through the tenure of the plan. The policy builds up a cash value through the term. Initially, the cost of the plan will be higher than the same sum assured of a term insurance plan.

    Limited payment whole life insurance

    With this kind of whole life policy, you only need to pay premiums for a limited period but the cover extends for much longer. For example, you will be required to only pay premiums for 20 years and get insurance cover for 25 years or even up to the age of 100. The premium payments are generally higher on these plans as the premium payment is shorter.

    Single premium whole life insurance

    This kind of policy provides protection for a lifetime with just a single premium payment. Once the premium is paid, the policy will be in force till the life insured expires. Upon the death of the life insured, the beneficiary will receive the death benefit. These policies may also have maturity benefits upon attaining the age of 100 years.

    Modified premium whole life insurance

    During the initial stages of the policy, the premium will be lower on these plans. These plans accumulate a moderate cash-value component that can be accessed by the policyholder and is free of tax.

    Survivorship life insurance

    This type of policy insures two people, usually spouses. Upon the death of the second life insured, the policy will pay out to the beneficiary. This policy is designed to insure both lives and pay benefits only after both have passed on. These policies are generally less expensive than two separate life insurance policies.

    Who Should Opt For Whole Life Insurance?

    You should choose a whole life insurance policy under the following circumstances:

    • You have dependents that you wish to financially protect in your absence.
    • You can afford to pay higher premiums.
    • You would rather have a policy in force for your whole life rather than make renewals every now and then.
    • You wish to accumulate a cash value which is sort of a savings through your insurance plan.
    • You are a high networth individual who needs to make investments to curb taxes.

    Benefits of Whole Life Policy:

    Lifetime Protection - The coverage of the policy will end only when the life insured passes on. This kind of life insurance keeps premiums steady through the entire policy. The policy will not be cancelled upon the diagnosis of any illness or other health issues. The only requirement is that premiums must be paid up as and when required.

    Stable Premiums - Taking a whole life policy at a young age can lock in a low premium rate for the entire term.

    Cash Value - These policies accumulate a cash value through the course of the policy. The cash value can be used to reduce future premiums, or it can be withdrawn. Loans may also be available against the cash value of the policy.

    Flexibility - Whole life insurance plans allow the policyholder to use the cash value or retain it in the policy to grow the value of the plan even further.

    Eligibility Criteria for Whole Life Policy:

    All insurance companies require individuals to meet certain criteria in order to be eligible for a whole life insurance plan. The general requirements have been listed below, however, this will differ between insurers.

    • You should be at at least 18 years of age. There are some plans that are available to infants of 30 days as well.
    • You should not exceed the age of 60 years upon entry into the plan.
    • The maximum age upon maturity is 100 years.
    • The minimum sum assured is around Rs.50,000.
    • You can pay the premium either in a single premium, for a limited period or for the tenure of the policy.
    • Premiums are payable annually, bi-annually, quarterly or monthly.
    • Minimum premiums can be as low as Rs.500 per month.

    Whole Life Policy Riders:

    Riders provide additional cover for an extra premium. These riders provide different benefits depending on the selection made by the life insured.

    Accidental death benefit rider

    In case the life insured dies in an accident, this rider pays an additional benefit to the nominee.

    Disability income rider

    If the life insured becomes totally and permanently disabled, this additional protection will provide a regular income to supplement the loss of income.

    Level term rider

    For a specified period, this rider will add a fixed amount of term insurance to the whole life policy.

    Living benefits rider or accelerated death benefit

    Upon the diagnosis of a terminal illness, this rider will pay a portion of the death benefit during the insured’s lifetime. This rider can be added on after buying the policy.

    Long term care (LTC) rider

    If you fulfil certain criteria specified by the rider, this additional cover will pay for expenses related to Long Term Care.

    Policy purchase option

    This rider gives you a right by contract to buy additional insurance without evidence of insurability. In case you have a child after you purchase the policy, you will be able to increase your life coverage later on.

    Waiver of premium rider

    In the event that you become unemployed or disabled and are unable to pay future premiums, this rider will ensure the policy remains in force and the rest of the premiums will be waived off.

    Difference between Term Insurance and Whole Life Insurance:

    There is a vast difference between term insurance and whole life insurance. While term insurance provides coverage only for a specified period of time, whole life insurance provides coverage for the entire lifetime of the insured person.

    Particulars Term Insurance Whole Life Insurance
    Purpose Pure life insurance Insurance plus savings and investment
    Understanding Simple to understand More comprehensive
    Cost of Premium Low premiums High premiums
    Renewability Renewable No need to renew
    Increase in Premiums Premiums can change Premiums remain stable
    Cash Value No Yes
    Tenure Fixed Term Whole Life
    Maturity Benefit No Yes
    Death Benefit Yes Yes
    Riders Yes Yes
    Lapse If the policy is not renewed, all benefits will cease Benefits do not lapse as long as premiums are paid
    Tax Benefit Yes Yes

    Whole Life Policy FAQs:

    1. Will my premium rate for a whole life plan increase as I become older?

      A. No, usually for a whole life plan, the premiums will remain the same throughout the tenure of the plan.

    2. Can I nominate multiple people as my beneficiaries for a whole life insurance plan?

      A. This depends on the insurance provider. But usually, yes, you will be able to nominate more than one person to receive the benefits payable.

    3. I have a term insurance plan. Can I convert it to a whole life plan?

      A. Yes, many insurance providers offer the facility to convert a term plan to a whole life plan. You will have to pay a higher premium if you convert the plan.

    4. Can I surrender my whole life policy in exchange for its cash value?

      A. Generally, yes, this is allowed. When you surrender your policy, you will receive the cash value or a portion of the cash value. Any outstanding loan amount and other charges may be deducted from the cash value.

    5. What is churning?

      A. Churning is when a life insurance representative coaxes you into surrendering your whole life insurance plan for its cash value and then taking a new insurance policy. This is usually done to gain a new sales commission from the fresh policy. Customers should be wary of this practice.

    News About Whole Life Insurance Plans

    • Those from rural areas can avail a life insurance policy from India Post

      Recently, with banking services being made available at India Post, rural people can now open a savings account, and can also make use of the India Post Payments Bank to make digital transactions. The move by India Post aligns with the Government’s aim to bring financial services to all and that’s exactly what they are achieving. In addition, rural people can also avail life insurance policies at affordable premiums. Initiated in 1995, the affordable premiums and services available are tailor made to suit those from rural areas and underprivileged backgrounds. For individuals and families, the life insurance products on offer by India Post are Endowment Assurance (Gram Santosh), Whole Life Assurance (Gram Suraksha), Convertible Whole Life Assurance (Gram Suvidha), 10 Years RPLI (Gram Priya), Anticipated Endowment Assurance (Gram Sumangal) and the Children Policy (Bal Jeevan Bima). All those between the age of 18 years - 60 years can avail the life insurance policies. The Whole Life Insurance policy with a minimum coverage of Rs.10,000 can be availed by just paying a premium of Rs.14 per month or Rs.148 per year, the endowment assurance policy which comes with a minimum coverage of Rs.10,000 is offered at a premium of just Rs.18 per month.

      23 May 2018