The name in itself implies that it is a contract that is designed to provide protection to the policy holder throughout his life. One can find various kinds of plans under this whole Life policy. But the oldest and most commonly used whole time policy is ordinary level premium whole life insurance, which is also known by the names of straight life, continuous premium whole life or traditional whole life policies.
Whole Time Polices are devised to create an estate for the family members of the deceased policy holder by providing the payment of sum assured along with the bonuses on the assured sum. Whole time policies are a good prospect for Indian families considering the increased longevity of Indian Population.
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The premiums payable under the policy are payable up to the age of 80 years of the policy holder or for a term of 35 years whichever is later. Moreover the premiums paid under this policy are fixed based on the age of the policy holder and the amount of the premium does not increase with the age.
The policy holder usually pays the premium until death and this policy belongs to the cash value category of life insurance including the endowment policies. The term life is another major form of the life insurance but it is of temporary use and has no cash value.
Guaranteed Life Time Protection
The whole time policy provides you protection for life which continues to grow through bonus.
Flexible Premium Payments Terms
The policy helps you in choosing your premium terms suiting your requirements as it offers flexibility. You can choose your premium payments terms 10, 15 or 20 years as according to your financial requirements.
Whole life policy offers you flexibility to choose your own bonus option as per your needs. Bonus paid in cash, Premium Offset, Paid up Additions are some of the bonus features which you will receive as your returns.
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There are several other benefits attached to this policy. Terminal illness benefit is one such additional benefit wherein if a policy holder is suffering from some terminal disease that is likely to cause his death.
Whole Time Policy- A Clear Winner
In Whole Time Policies you need to pay fixed and annual premiums. And sometimes the premium annually paid declines. The earnings that one accumulates as the reason of this policy are tax free and tax deferred.
The proceeds of this policy are not the part of a probate estate therefore the beneficiary of the policy can receive the proceeds without any delay or expenses and uncertainty. There is no public record that is maintained of death benefit amount or to whom it is being paid to.
Besides the death benefits is tax free i.e. not subject to income tax. Policy holders can use these whole time policies as collateral or security for personal loans. In a nutshell one can say that a whole time policy is a clear winner.
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