Whole Life Insurance Plans

On the death of the insured, the nominee usually receives the sum assured plus the bonus or the profit, if any. With some policies, the nominee might receive just the sum assured.

In case of a unit-linked whole life plan, the nominee receives the value of the investments or the sum assured, whichever is higher.

Although they typically offer no survival benefits, the insured can make withdrawals or take loans against the cash value of the policy. The cash value is the profit or bonus earned on the premiums paid.

Some policies provide survival benefits if the insured lives up to the age of 80. On maturity, the insured receives the sum assured plus the bonus for the term of the policy.

The premium for a Whole Life policy is usually paid for a longer duration of time (since the insurance coverage term is longer). However, some companies offer the insured with a portfolio choice of selecting the premium paying terms.

The practical utility of whole life plans is that they can be used to leave behind an estate for one's heir(s). Certain whole life policies also offer the flexibility of regular withdrawals after a certain age.

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