There are a number of life insurance products that prospective life insurance buyers can choose from. Some of the most common types of life insurance policies include term insurance plans, whole life insurance plans, endowment plans, ULIPs, money-back plans, and annuity plans, among others.
While certain life insurance products like term insurance plans offer life coverage to the policy buyer for a specific duration that usually ranges between 5 years and 40 years, whole life insurance policies offer a risk cover against death to the policy buyer for a duration of 99/100 years or their entire lifetime. Read on to know more about whole life insurance policies and whether you should purchase this type of a policy.
Given that a whole life insurance policy provides coverage for the policyholder’s entire lifetime, this type of a policy is best suited to individuals who would like to receive coverage for an extended duration of time. For many people, their liabilities and financial commitments don’t end when they retire. In such cases, it is wise to opt for a whole life insurance policy since this will ensure that the life assured’s nominee is provided a compensation if something happens to the former party, at any point during the policy tenure. This policy is also a good choice for individuals who wish to leave a legacy behind for their dependents.
Some of the key features of whole life insurance policies are as follows:
A few important benefits of whole life insurance policies are as follows:
While a whole life insurance policy does offer extended coverage to the life assured, it is also important to remember that it is also more expensive than certain other types of life insurance products like term insurance plans. Thus, if you are considering purchasing a whole life insurance policy, it is important to first assess your premium payment ability.
It is also necessary to consider your coverage needs. If you only require life insurance coverage during your employment years, you should go with an insurance product that has a shorter policy term.
If you do decide that a whole life insurance plan is what is best suited to your requirements, make sure to check the various whole life insurance plans that are offered by different insurance companies and opt for a policy that provides you adequate benefits at an affordable premium rate.
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