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WHOLE LIFE INSURANCE
Whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured person, as long as the premiums are paid. It has several key features:
Lifetime Coverage: Unlike term life insurance, which provides coverage for a specific period (like 10, 20, or 30 years), whole life insurance covers you for your entire life as long as premiums are paid.
Premiums: Premiums for whole life insurance are generally higher than those for term life insurance because they fund both the death benefit and a cash value component.
Cash Value Component: Whole life insurance policies have a cash value component that grows over time, usually on a tax-deferred basis. This cash value can be accessed by the policyholder through withdrawals or loans during their lifetime. Keep in mind that loans can reduce the death benefit if not repaid.
Death Benefit: The death benefit is the amount of money paid out to the beneficiaries upon the death of the insured. This amount is typically tax-free to the beneficiaries.
Guaranteed Premiums: With whole life insurance, premiums are often guaranteed not to increase for the life of the policy, providing predictability and stability in financial planning.
Dividends (for participating policies): Some whole life policies are “participating,” meaning they may pay dividends to policyholders based on the insurance company’s financial performance. Policyholders can use dividends to increase the cash value, reduce premiums, or receive them as cash.
Whole life insurance is often used for long-term financial planning, estate planning, and providing a death benefit that lasts throughout the insured’s lifetime. However, it’s essential to carefully consider your financial goals, budget, and needs before choosing a life insurance policy, as whole life insurance can be more expensive than other types of coverage.
Whole Life Insurance Plans Comparison
| Features | Lifetime Coverage | Guaranteed Sum Assured | Bonuses | Premium Payment Options | Riders | Tax Benefits | Additional Information |
|---|---|---|---|---|---|---|---|
LIC New Whole Life Plan
|
Yes | Yes | Accumulates bonuses over time | Flexible premium payment options | Optional riders available (e.g., accidental death benefit, critical illness) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Policy offers maturity benefits if the insured survives till maturity |
HDFC Life Sampoorn Samridhi Plus
|
Yes | Guaranteed sum assured payable on death | Guaranteed additions and bonuses | Flexible premium payment options | Optional riders available (e.g., accidental death benefit, critical illness) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Option to choose between bonus options (Simple Reversionary Bonus or Cash Bonus) |
ICICI Pru Lifetime Classic |
Yes | Yes | Accumulates bonuses over time | Flexible premium payment terms | Optional riders available (e.g., critical illness, accidental death benefit) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Policyholders can receive accrued bonuses in cash or utilize them to increase the sum assured |
SBI Life - Smart Privilege |
Yes | Yes | Guaranteed additions to the sum assured | Flexible premium payment terms | Optional riders available (e.g., critical illness, accidental death benefit, premium waiver benefit) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Maturity benefits include the sum assured along with accrued bonuses and guaranteed additions |
Max Life Whole Life Participating Insurance Plan |
Yes | Yes | Guaranteed additions and bonuses over time | Flexible premium payment terms | Optional riders available (e.g., critical illness, accidental death benefit) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Policyholders can choose to receive bonuses in cash or use them to enhance the sum assured |
Bajaj Allianz Life LongLife Goal |
Yes | Yes | Guaranteed additions to the sum assured | Flexible premium payment terms | Optional riders available (e.g., accidental permanent total/partial disability benefit, critical illness) | Premiums eligible for tax benefits under Section 80C and tax-free death benefit under Section 10(10D) | Policyholders can opt for partial withdrawals after the policy acquires surrender value |
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