Life insurance is always necessary if you are the family’s sole earning member and have dependents. But since the rise of money-back policies and return on investment policies, life insurance has become more of an investment plan rather than a protection plan. And a major addition in the category was whole life insurance.
Whole life insurance comes with several amazing savings and investment benefits. So, continue reading and jump right into the top 10 reasons why a whole life insurance policy is a good option.
Lifetime coverage is the star attraction of whole life insurance. In most life insurance, you can see that the policy coverage ends with the policy premium payment term. But here, you can get a validity even after the end of the payment term, and that too for the remaining lifetime.
Money Back Policy
Most life insurance policies also don’t have a money-back policy. So, at the term-end, if the policyholder survives, they don’t get any benefits from all those years of premium payments. But in whole life policies, policyholders can get a money-back policy when they reach the age of 100.
Return On Investment
Whole life plans also provide investors with a good interest rate even when they are non-participating, non-ULIP and non-market-dependent. So, they are good means to invest in a guaranteed returns plan.
Whole life policies also have tax savings like any other life insurance policy plans. But considering the plan maturity that comes during retirement, senior citizens can claim higher relaxations on their profits.
Whole life insurance plans are also not market-dependent. So, there are no risks in the investment due to the market conditions. And even if the market conditions are bad at the time of maturity, it will not affect the interest rate decided at the beginning of the plan.
Terminal Illness Benefits
Whole life insurance also offers several pay-outs during important stages and requirements of life. One such scenario where they provide funds is when the policyholder suffers from a terminal illness. In such cases, they provide as much as 50% of the total amount accumulated in the life insurance.
You can also add several covers to your whole life policy, making them useful for different unexpected occasions in life. Some examples of extra covers in whole life insurance are health cover, accident cover, permanent disability cover, and family group-on. You can eliminate the requirement of an additional insurance policy and add the necessary covers to one insurance plan through these.
One of the best benefits of a whole life plan is that they are perfect for retirement funds. If the policyholder wants, they can choose to have several pay-outs and regular monthly income from the whole life plan. Thus, becoming be a good retirement plan that provides necessary funds for sustenance during the days without an income source.
Whole life plans are also as good as emergency and backup funds because of their liquidity. They either provide loans themselves or allow using the maturity fund as collateral for bank loans.
If the insurer does not provide a loan, they must at least have a partial withdrawal facility. You can withdraw up to half the accumulated funds per the insurer’s regulations. So, you always have funds to meet the expenses of an emergency.
Knowing these points will be helpful when you have to purchase whole life insurance for yourself or your close ones. Whole life insurance provides the best coverage and returns found nowhere in other life insurance policies.
To further increase the returns, you must choose reliable plans. And for that, you must choose a reliable insurer.