Whole life Insurance provides financial protection to you till the age of 99 years. The objective of this type of life insurance is to provide life cover to the policyholder’s nominee/family in case the policyholder passes away before the age of 99 years. Usually the features of a whole life insurance is similar to a life insurance expect for the fact that it covers you till the age of 99 years. Whole life insurance policy promises to pay a death benefit to the beneficiaries of the policyholder upon his demise and takes care of the financial well-being of the dependents. Along with offering a saving option and insurance coverage, it is a great financial tool as it assists in tax exemption. Along with offering death and maturity benefits, individuals can build a corpus that grows with time. This amount can be further utilized to fulfill financial goals in life. It is an ideal option for those who want to build a legacy for their upcoming generations. It also helps in building savings habits among policyholders. Life Insurance for NRI also offers similar benefits, providing financial security and potential tax advantages for those working abroad

Types Of Whole Life Insurance Policies

Whole life insurance policies can be further categorized into the following categories: 

1. Limited payment of whole life insurance: In this type of life insurance, you need a premium amount for limited or certain years, let's say 15 or 20 years. After that, you can enjoy policy coverage for the entire lifetime. However, the premium charged may be higher as compared to other plans as the time span to pay premiums is limited.

2. Single premium whole life insurance policy: In this whole life plan, you pay the premium in a single lump sum amount. For a one-time payment of a premium, you can enjoy financial coverage for the rest of your life. It can be an ideal option for those with extra funds to park and look for insurance, as well as an investment avenue.

3. Modified whole life insurance: It is a type of whole life plan in which you pay low premium amounts for a few initial years. The premiums to be paid increase with time, and the coverage remains the same through the policy. This type of policy is advisable only if you are confident to pay high premiums in the future. 

4. Variable whole life insurance: This type of whole life insurance plan allows policyholders to invest money through premiums paid and meet investment goals. It offers tax deductions, wealth creation, cash value growth and financial protection for loved ones.

5. Joint whole life insurance: This type of plan provides coverage to two individuals jointly under one plan. If one of the policies passes away, the other one can claim the benefit. These plans usually don’t offer survival benefits. 

6. Participating in a whole life insurance policy: Along with benefits, this type of policy offers variable bonuses that are linked to the company's profits. The benefits can be in the form of dividends or bonuses. The dividends can be used to offset future premiums or to earn interest. 

7. Non-participating whole life insurance policy: These policies do not offer an opportunity to participate in the company’s profits or earn dividends. It offers guaranteed maturity benefits irrespective of the amount of profits earned by the company.

8. Pure whole life plan: Under this policy, you have to pay premiums, and in return, you receive financial coverage for your whole life. Upon your demise, beneficiaries or nominees can avail of death benefits.

9. Level premium whole life insurance: In this, the amount of premiums remains the same throughout the policy tenure and doesn’t change for any reason. Upon the policyholder’s demise, the guaranteed sum assured is given to the nominee/beneficiary. 

10. Indeterminate premium: In this, there is no fixed premium amount across the policy term. The companies may change the premium amounts according to the costs.

How Does Whole Life Insurance Work

Here’s a detailed description of how it works:

1. It offers lifelong protection and can extend up to 99 years of age. If something happens to you, your nominees receive a death benefit.

2. You pay premiums at regular intervals to get yourself insured. A portion of your premium goes towards savings. The amount grows over time, and you are eligible to access it later. It is also called cash value.

3. If you outlive the whole life policy, you are rewarded with a sum assured and bonuses that accumulate with time as a reward.

4. It provides financial security to your loved ones in case of your unexpected demise and helps them live a comfortable life. Also, it helps them pay off your debts, if any.

5. You can use the cash value to fulfill your financial goals, like buying a home, marrying your children, etc

The Whole Life Insurance Riders

Riders can be termed as add-ons, which can enhance the coverage of the policy. These riders may add to the premium amount but always come in handy in uncertain times. A few of them are mentioned below.

1. Waiver of Premium Rider: In this rider, if the insured is diagnosed with a critical illness or met with an accident that left him disabled, the future premiums will be waived while the policy will still remain in force.

2. Accidental Death Benefit Rider: In this rider, the insurance company pays an additional payout to the nominees or beneficiaries in case the policyholder passes away due to an accident.

3. Accidental Total Permanent Disability Rider: In the accidental total permanent disability rider, if the policyholder is diagnosed with total permanent disability due to an accident, the insurance company will pay the rider the sum assured to him to cover the medical costs.

4. Critical Illness Rider: In this add-on, if the insured is diagnosed with a critical illness, the rider can take care of the financial expenses and obligations, including organ transplants, heart treatments, etc.

5. Terminal Illness Benefit: In this rider, the nominee or the beneficiary receives the sum assured on the insured’s demise after he’s diagnosed with a terminal illness.

6. Hospitalization Benefits: Under this rider, if you get hospitalized in general or even get admitted to the ICU, a fixed percentage of your policy's basic sum assured would be paid to help take care of your (the policyholder's) medical bills and treatment costs.

Who Should Purchase A Whole Life Insurance Plan

While everyone is advised to buy a whole life insurance policy, it is a non-negotiable for salaried individuals. It is highly recommended for:

• Individuals who want a legacy for their future generations.

• Individuals who wish to create wealth and provide a corpus for their families.

• People who have dependents who rely on them for their financial needs.

• Individuals who wish to save for their post-retirement years and live a peaceful life. 

• People who wish to save taxes and build a savings habit.

Eligibility Chart for Whole Life Insurance

However, insurers may have differences in specific terms, conditions, and the flexibility they offer. Common criteria include:

Buy A Whole Life Insurance Plan Online

1. Give Key Details: When purchasing a whole life insurance policy online, you first need to fill out an online form with details such as your contact number, email- ID, name, gender, smoking habits, and other required information that would be required to calculate the premium and play a role in approval/rejection of your application.

2. Determine the Coverage Amount: You need to finalize the sum assured amount that would be enough for your family's current as well as future financial needs. Factor in your income, expenses, etc., when deciding the amount.

3. Personalize Your Policy: Most whole life insurance policies offer a degree of flexibility in choosing the policy tenure and premium payment options. So be wise and customize your policy, if needed, by adding optional riders, such as personal accidental death benefit, to enhance your coverage by paying a bit higher premium.

4. Make the Premium Payment: While checking out during the whole life insurance purchase process, you would be required to pay the first premium instalment in order to complete the policy purchase. You can choose any online payment option, such as UPI, Netbanking, etc., to complete the policy purchase, after which you shall get an email notification regarding the confirmation