Several things in life are unpredictable, so itself life is. Nobody can determine what will happen the next moment. The uncertainties don’t hit with prior notification, and when they come, they disturb the routine deeply. Therefore, it is always better to stay covered so that the family gets adequate financial cover.
Whole life policies are meant to provide life cover throughout the life of the insured person. The general life expectancy of any living individual is approximately 100 years. Thus, whole life policies come with a tenure of 100 years. If the insured person survives the policy tenure, the policy matures, and the maturity benefits are paid immediately.
The eligibility criteria for whole life policies differ from insurer to insurer. Your eligibility is decided based on your age, the number of dependents on you, your medical history etc.
There are several advantages of whole life policies such as-
Adequate Life Cover
Whole life policies provide sufficient life cover which is enough to help to sustain the lifestyle of your loved ones. If by misfortune, in the event of the demise of the person, the insurer pays death benefits to the beneficiaries once the claim is made.
Guaranteed Benefits
Unlike term life insurance, whole life policies offer assured benefits at the end of the tenure. In both the cases, either the unfortunate event of demise or the maturity, the insurance company is obliged to pay the benefits. It is to be understood that the premiums you pay towards the policy are not directed towards insurance. A part of the premiums is invested in the stock market by the company to gain additional profits. If the market performs well, the insurer may declare a few bonuses.
Avail Loan Against Policy
The surrender value of the whole life policy is always sizeable and increases over the period. It helps in another way such that you can avail loan against the surrender value of your policy. In such cases, you don’t ever need to mortgage your property to take a loan for any reason.
Usually, the premium payment term is the lock-in period of the policy. Therefore, in case of emergency, you can surrender your policy and get the money anytime back. It is the best option in the case of money liquidity. Thus, make sure that the premiums are affordable to you, take care of finances, analyse the future requirements and buy whole life policy, soon!