The whole life insurance policy is also called as straight life or ordinary life insurance policy. As the name of the policy suggests, the insurance plan will be in force throughout the life. However, you are obliged to pay the insurance premium on a regular basis without fail. If the insured person dies, the money will be paid to the nominee. The policy can be closed at any time by the customer. It is possible to borrow against the policy as well. There will not be any tax on the money that is made through the insurance policy.
What is whole life insurance plan?
There will be a beneficiary in the whole life insurance plan. The death benefit will be awarded on the death of the contract holder. If you go for term insurance, the policy will expire after the term. The term insurance will be taken for about 10 years or 20 years as per your needs. There will not be any returns after the expiry of the policy.
If you are young, you can take the insurance policy at the earliest so that the insurance premium amount will also be little. As you grow older, you will want to pay a higher insurance premium as the risk to various kinds of illnesses and diseases will increase. If you go for a term policy, you should renew the policy after the end of the term. The renewal cost of a term policy is very high. On the other hand, the insurance premium will be high when you go for whole life insurance. Even though the premium is high in the beginning, they will not go up considerably.
Lasting insurance plan
The whole life insurance plan will last for a long period of time. The policy will be in force as long as you pay the insurance premium. There will be death benefit as well as cash value benefit with the whole life insurance plan. Even though you pay a higher insurance premium, it is worth the cost so that there will be great satisfaction.
If you go for a term policy, the rates will increase over a period of time. The change in health and age will have a great impact on the premium. The cost of premium will increase when your age grows. The risk of death will increase when your age grows. Hence, you will want to pay higher insurance premium towards the traditional insurance plan. There will be protection from higher insurance premiums during the old age when you choose the whole life insurance products offered by reputed players.
In addition to the cost of insurance, you will also be able to subscribe to additional riders so that there will be great satisfaction. The cost of insurance will not increase even though you become ill. The premiums will not change throughout the insurance period so that customer will be benefited in a very efficient way. You can increase the death benefit by paying a higher premium. If you do not withdraw the money, the cash value will not change at all.