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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 2018:

    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. A whole life insurance policy works in a very simple manner.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 is the normal whole life insurance policy that you can purchase for yourself. This type of policy is nothing but a contract signed between you and the insurance company. You will continue to pay premiums in order to keep the policy in force while the insurance company will continue to provide you coverage. In case of your death, the nominee appointed by you will receive a lump-sum amount called the death benefit. If you survive the policy term, you will receive a benefit called the maturity benefit. However, the premiums that you will pay will be slightly on the higher side as compared to say a term insurance plan. The reason being that 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

    Under this type of policy, you will be required to pay premiums for a limited period of time. 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 advantage of availing this plan is that it allows you to pay your premiums during a time when you are still working and when you are in a better financial position to pay your premiums. Once you have paid your premiums for the period specified, you need not have to worry, as you will still continue to receive coverage from the insurance company even when you are not paying any premiums to the insurance company. This type of policy is suitable for those who may not have the financial capabilities towards the later part of their lives to pay the premiums. This type of plan allows you to enjoy the benefits of a whole life insurance plan even when you may not be financially adept towards the later part of your life to pay the premiums. The premium payments are generally higher on these plans as the premium payment is shorter.

    This is a very special kind of whole life policy that you may come across. This type of whole life insurance policy might be suitable for you if you prefer to pay the premium once as a whole amount and continue to enjoy the benefits offered by the whole life insurance plan. 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.The advantage of this policy is that it relieves you the burden of paying premiums regularly and it can be helpful to you when paying premiums can become a financial burden for you towards the later part of your life.

    Modified premium whole life insurance

    During the initial stages of the policy, the premium will be lower on these plans. For example, you may purchase this type of plan and pay lower premiums for say five years. After that, you will be required to pay higher premiums for the remaining period the policy will be active. These plans accumulate a moderate cash-value component that can be accessed by the policyholder and is free of tax. This type of policy is suitable for you if you are starting out early in your career and do not have the financial capability to pay the higher premiums in the beginning. So, as you will pay lower premiums for the first few years, you will also grow from a financial point of view and will be in a better position to pay the higher premiums towards the later part of your career.

    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.
    • If you have long-term goals to achieve then it is advisable that you purchase a whole life insurance. Whole life insurance plans will provide you a cover during this period of time and in case something happens to you, the financial liabilities arising out of your long-term goals can be taken care of.
    • Whole life insurance plans may also offer you the avenue to build a corpus keeping in mind your future needs.

    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.

    Option to avail loan - There are whole life insurance policies which also offer you the option of availing loan against it.

    Tax benefits- You can avail exemptions on your taxes for the premiums paid under Section 80C of the Income Tax Act, 1961. In case something happens to you, the beneficiary will receive a lump-sum amount called the death benefit which is also exempted from being taxed under Section 10(10D) of the Income Tax Act, 1961.

    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. Why should I buy a whole life insurance policy?

    2. A. A whole life insurance policy provides life coverage to the policyholder for his/her entire lifetime. Thus, if you are looking for a life insurance policy that will provide you extended coverage, it is best to opt for a whole life insurance plan.

    3. What are the benefits of whole life insurance plans?

    4. A. Some of the main benefits of whole life insurance plans are:

      • Life Cover: Whole life insurance plans provide a comprehensive risk cover against death to the policyholder. Thus, a death benefit is paid to the nominee in the event of the policyholder’s death.
      • Extended Policy Tenure: Whole life insurance plans provide coverage to the policyholder either for a period of 99 years or for his/her entire lifetime.
      • Level Premiums: The premium rate for whole life insurance plans remain constant for the duration of the policy term.
      • Cash Value: Whole life insurance plans also acquire a cash value. Thus, policyholders can avail a loan against them.
      • Tax Benefits: You can also avail tax benefits when you purchase a whole life insurance plan.
    5. Are whole life insurance plans expensive?

    6. A. Life insurance providers usually decide the premium rate based on several factors such as the sum assured opted for, age of the policy buyer, riders opted for, etc. Thus, your premium payable will be linked to these factors. However, since whole life insurance plans provide extended coverage to the policyholder and also acquire a cash value, it is likely that they will be more expensive than certain other types of life insurance products.

    7. Can I purchase a whole life insurance plan online?

    8. A. Many insurance providers offer a number of life insurance policies online through their official websites. You can also choose to purchase life insurance plans through trusted third-party insurance websites. However, before you purchase any policy online, make sure to read through the policy brochure, check the premium quote, and compare the terms and conditions of at least a few different policies.

      5. What are the things I should look for when selecting an insurance provider?

      A. Selecting the right insurance provider is as important as selecting the right insurance policy. Here are certain things that you should look for when choosing an insurance provider:

      • History of the Company: Make sure to check when the insurance company was established and how it has grown since then.
      • Claim Settlement Ratio: The claim settlement ratio is indicative of the total number of claims settled by the insurer against the number of claims received by them in a financial year. This is published by the IRDAI in their annual report.
      • Customer Care Channels: In case you need any assistance, it is vital that you are able to contact the insurer. Thus, make sure to check the various customer care channels that are offered by the insurer.
      • Persistency Ratio: The persistency ratio refers to the total number of policies that a company is able to carry forward to the next financial year without policies getting lapsed or losing business to other insurance companies. This is a good indicator of the insurer’s profitability.

      6. How should I go about comparing different whole life insurance plans?

      A. When comparing insurance policies, make sure to keep the following points in mind:

      • Features and Benefits of the Policy: You will need to read through a few different policy brochures and compare the various benefits/payouts offered by different plans and the features of these policies. You should, ideally, opt for a policy that offers coverage and payouts as per your needs. Also, make sure to check the policy tenure range, sum assured options, eligibility criteria, etc.
      • Riders Offered: Most insurance providers offer riders along with insurance plans to help policy buyers enhance and customise the base policy coverage. Thus, you will need to make a note of the various riders that are offered by different insurance providers.
      • Premium Rates: Different insurers may charge you slightly varied premiums in accordance with their respective underwriting norms. Thus, you will need to request for premium quotes from various insurers and opt for a policy with affordable pricing.
      • Reliability of the Insurer: Lastly, make sure to check the reliability of the insurance provider by comparing claim settlement ratios, persistency ratios, etc.
    9. 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.

    10. 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.

    11. 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.

    12. 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.

    13. 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.

    14. How old does one need to be to purchase a whole life insurance policy?

    15. A. The eligibility criteria for a particular policy will vary based on the terms and conditions of the policy. While most whole life insurance plans provide coverage to individuals over 18 years of age, certain plans also offer coverage to children as young as 30 days.

    16. For how many years will I need to pay premiums for a whole life insurance plan?

    17. A. Most whole life insurance plans are limited premium payment plans, wherein policyholders will only have to pay the due premiums for a certain number of policy years. The life cover, however, will be provided for the policyholder’s entire lifetime.

    18. When does a policy lapse?

    19. A. An insurance policy that hasn’t acquired a surrender value yet will lapse if a policyholder doesn’t pay the due premium within the grace period offered by the insurer. If the policy has acquired a surrender value, it will be converted into a paid-up policy if the due premium is not paid by the end of the grace period.

    20. Can I take a loan against a whole life insurance plan?

    21. A. Most insurance companies allow customers to avail loans against whole life insurance plans if the policy has already acquired a surrender value. However, in most cases, only a certain percentage of the surrender value can be taken as the loan amount.

    22. Can I purchase policies for more than one person?

    23. You can purchase a joint or a group insurance policy which will cover more than one person. However, it is advisable to take advice of a financial consultant before deciding whether you need such type of an insurance policy.

    24. How can I compare more than one policy?

    25. There are various websites on the internet today which can help you compare the prices and the premiums you will be required to pay for the policies you might be interested in. You also will be able to check the features and benefits offered by these policies which in the end will help you narrow down your choices and in the end, help you purchase a policy which will be the most suitable for you.

    26. How to choose an insurer from whom I will purchase a whole life insurance plan

    27. It is always recommended that you purchase your whole life insurance policy from a trusted and reputed insurance company. One of the ways to check if the insurance company is suitable for you is to check their claim settlement ratio. Higher the claim settlement ratio, better the insurance company is likely to be. Apart from that, check their track record in how they deal with their customers’ grievances and the time taken by them to solve them.

    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