Whole Life Insurance Coverage, Who Needs It?

Opting for whole life insurance is a smart move for most of us looking for a secure life for our loved ones that depend on us. With several insurance products in the market, you have a plethora of options to choose from. But that certainly depends on how well you know your needs, anticipate your future needs and the benefits that these insurance products offer you. Hence it becomes essential that you learn the trade, ask for guidance as and when required, before going through your decision. There is not much room to make mistakes because then it’s not only a waste of money and time but you also put your future and those of your loved ones at risk.

Whole life insurance is a type of life insurance. The others include term insurance, endowment policy, unit-linked insurance plan (ULIP) and money-back policies. Starkly different from one another, each of these insurance offer great benefits but the gains generally depends on what your exact requirement from the insurance policy is. A whole life insurance pays your beneficiaries an amount as per-agreed.

Term insurances and other insurance types may offer coverage for only a fixed duration of time, whereas whole life insurance provides lifelong coverage. Term insurance may have cheaper premium as compared to whole life policies. The premiums are less expensive if you buy a policy while you are still young. The premium payment may be yearly or monthly depending on the company you choose. But the benefits and bonuses involved are far promising when you opt for a whole life insurance. This plan is especially beneficially if you are planning for those that financially depend on you.

Another benefit is the cash value that builds you from your premium. This amount that accumulates is free from taxes and you can use them at any point of time that you may want. You can also borrow a loan against this cash value. The money that your beneficiaries receive after your death will be tax-free. These tax benefits are guaranteed under section of the Indian Income Tax Act.

Many companies offer flexible schemes. They can be designed to accommodate your needs. What is important is for you to make an account of your needs and those of your families. A smart plan will help make a difference. Use all the resources at your disposal including professional guidance, thorough research, internet to help make a wise decision.