What is Whole Life Insurance and How Does it Work

We are provided with many types of life insurance policies and even though when compared to other foreign developed countries what India has. It is considered as very less in terms of insurance facilities and claims. Types of policies will depend on the objectives and our requirements. Life Insurance is purely safe and secured. Investment will help in financial planning also. Whole Life Insurance, which name itself indicates that it will cover whole life. The main advantage of this insurance policy is we don’t have to think of other policy as it exists our entire life.

All we have to do is we have to pay some amount of regular payments with respective to our matured amount throughout life and later that will be paid to our nominee. Whole life insurance is a type of life insurance contract that provides insurance coverage of the contract holder for his or her entire life if premium is paid for some prescribed years. Upon the inevitable death of the contract holder, the insurance payout is made to the contract’s beneficiaries. These policies will also include savings component which further accumulates as cash value.

The first main advantage of whole life insurance policy is that the cost of the premiums paid to the policy never increases as long as you make sure to pay the premiums and the policy does not lapse. The premium you can decide depending on your capacity and number of years you are going to pay premium amounts. This is due to the changes in your health and age. As you get older, your chances of dying increase and life insurance will hold till your last breathe. Since the life insurance company takes on that risk they also increase the cost of premiums and it is apt.

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