Benefits of Whole Life Insurance Policies in India

Mostly people think that a “life insurance policy” and a “whole life insurance policy” are the same thing, as it appears from its name, but it is not true. A life insurance policy covers the policyholder under adverse circumstances and provides financial stability at the same time, before the policy gets matured and when the maturity period collapsed the sum assured, (that policyholder has paid during policy period in the form of regular premium) is refundable no matter he is alive or not. However, on the other hand this situation varies in “whole life insurance policy’s” terms and condition. In “whole life insurance policy” the policyholder requires to pay regular premium but do not get the surety of refundable money after the maturity of the policy. Because a “whole life insurance policy” only claims on death of the policyholder and even money is not refundable (neither to policyholder nor to his family or nominee) after the maturity period of the policy no matters the policyholder survives or not.

Therefore, the policy has many negative points and that is the reason why usually people do not choose these kind of polices. And it is even advisable to opt a better policy type because if one take a policy and pay the premium for many years and still not get the surety of refunding his money after the maturity period than it is just a waste of money. However, the “not so flexible terms and condition” is suitable only for the people who are fighting against major ailments like cancer and having surety of their natural death so that after their death, they can serve their insurance money either to their family or to some charitable trust.

The next negative point of “whole life insurance policy” is that a policyholder cannot withdraw his premium money during his policy period, so in a way the policyholder does not even get the surety of financial help from his premium money, in the time of urgency. However, on the other hand there are many life insurance policies, which give the flexibility of settlement during policy and even return, the premium amount after the maturity date as pension. Moreover, if one get the surety of pension, than in old age and a person can rely on this policy because after his retirement if he dies than, according to the policy terms and condition a particular nominee can get the financial protection.