Whole Life Policy

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A whole life policy is a good plan for one who is the main income earner of the family and wishes to protect the loved ones from any financial insecurity in case of premature death.

In whole life insurance there is no fixed term of cover, the insurer offers to pay the agreed upon death benefit when the insured dies, no matter whenever the death might occur. The premiums can be paid throughout one’s life or for a specified period of time which is limited and is less than one’s lifetime.

Whole life premiums are much higher than term premiums since a whole life policy is designed to remain in force until the death of the insured, and therefore it is designed to always pay the death benefit.

Whole life insurance plays an important role in household saving and creating wealth to be passed on to the next generation. An important motive which drives its purchase is that of bequest – the desire to leave behind a legacy to one’s future generations.