Whole Life Insurance Plans - An Overview

What Is A Whole Life Policy?

Whole Life plan is also called as straight life, ordinary life. It remains throughout the insured whole lifetime provided the premiums are paid. A certain aforementioned amount is paid to the nominee in the event the insured dies. The policyholder at any time withdraw the policy or borrow against it. The maturity age for this policy is 100 years. If the insured lives past the maturity age, the policy will become matured endowment. The death benefit under this plan is tax free.

How Does it Work?

are very different from other types of life insurance plans. Understanding how they work can also help you decide whether they are fit for you or not. A whole life plan can be purchased against a payment which can be made as a one-off sum, on a monthly or a yearly basis. If you have purchased a unit-linked whole life policy, then your funds will be directed not only towards the purchase of your life insurance for payment of the sum assured amount and the remainder of the amount will be invested in an investment fund. In case of unit-linked/flexible whole life policies , the insurer will regularly review the policy to compare whether the value of the policy is equivalent with the cost of the life assurance which it is providing. In case the investment fund, where the remainder of the money is invested, is not performing to help cover the cost of benefits, your insurer may suggest you to either reduce the amount of your sum assured or to increase your regular contribution. Additionally, certain whole life policies also give customers the option of obtaining cover against specific illnesses or disability.

Types of Whole Life Policy:

There are different types of Whole Life Insurance Policies available in the market, each of which is designed to cater to specific requirements. Read about each of these to find out more about which one may suit your needs.

  1. Non-Participating Whole Life Insurance:

    A non-participating whole life policy has a level premium and face amount during your entire

    life. The advantages of such a policy are its fixed costs and relatively low out-of-pocket premium payments. Since the policy is non-participating it does not pay you any dividends.

  2. Participating Whole Life Insurance:

    The defining feature of a participating whole life policy is that it pays dividends. Payment of dividends essentially indicates that the excess earnings which the company has accumulated via investments, savings from expenses and favorable mortality of the organization. There is no guarantee that policy holders will receive dividends. However, if dividends are paid, they will be paid in the form of cash which will be utilized to bring down the premium payment amount or will be allowed to accumulate and will attract interest at a specified rate. The dividends can also be used to for purchasing paid-up additional insurance to enhance the face amount of coverage provided.

    Under these two broad categories of participating and non-participating, there are several types of whole life policies which individuals can choose from:

    1. Level Premium Whole Life Insurance:

      As the name suggests, level premium whole life insurance features level premium payments which must be paid till the insured is alive. The premiums collected in the early stages of this policy are sufficient to pay for the insurance protection costs. The surplus funds, inclusive of the interest earnings will contribute towards any shortfalls in premiums at a later stage when the annual premium payments may not be enough to cover the insurance costs.

    2. Limited Payment Whole Life Insurance:

      Under the Limited Payment Whole Life Insurance, policyholders will be required to pay premiums for a limited period of time but will receive lifetime protection. However, since the premiums are to be paid for a shorter period of time, the premium amount will be relatively higher than the premium amount payable for an ordinary whole life plan. under this kind of plan, customers have to pay premiums for a specified number of years – 10 years, 20 years, etc.

    3. Single Premium Whole Life Insurance:

      Under the single premium whole life insurance policy, individuals have to make the premium payment in a single lump sum. The payment must be made at the issue of the policy, making the policy fully paid up, with no requirements of any further premium payments. The single lump sum premium payment will provide the policy with loan value and immediate cash value, both of which could be significant in amount, depending on the amount of the lump sum premium. Given the sizeable amount of the lump sum premium payment, the Single Premium Whole Life policy is considered more as an investment insurance product.

    4. Indeterminate Premium Whole Life Insurance:

      The special feature of an Indeterminate premium whole life policy, which is otherwise similar to an ordinary whole life insurance policy, is that is allows policyholders the option of adjusting their premiums. Based on its estimate of its current earnings, cost of expense and mortality, the insurer will charge policyholders a "current" premium. In case there are any changes in the aforementioned estimates, the insurer will adjust the premium amount accordingly which the policyholder will then be charged.

Who Should Opt For Whole Life Insurance?

is a suitable form of protection for a number of individuals. You can opt for whole life insurance if:

  • You have made investments towards your post-retirement requirements and are seeking for other opportunities to invest in.
  • You own an estate and wish to plan and bequeath your estate and savings to your beneficiaries and transfer your wealth.
  • You are a young professional who has started off with their career and will be able to make premium payments for a considerable time going into the future.

Benefits of Whole Life Policy:

  1. Cover For Life

    The insured will get cover for his entire life unlike other life insurance plans that is fixed for a certain period. The other life insurance plans will expire and it will be expensive to take another one when you really want one. In the event you die, a lump sum tax free amount is paid to the nominee. If you outlive the term, you will not receive any return. For example if a 25 year old takes a whole life plan at the age of 25 years, he will receive a lump sum payment at the age of 45, the age at which his 20 year premium payment term will expire. He can use this money for his retirement and also his cover will continue till he turns 100 or till the date he dies.

  2. Assurance Of Coverage, Periodic Payments And Tax Benefits

    The survival benefits will be built over time which keeps increasing over time. You will get lifetime coverage along with guaranteed level premiums for a limited premium payment term. The premium is constant throughout the premium payment term. Sum assured is guaranteed and the bonuses are declared based on the performance. Some companies offer survival benefit from the end of the premium payment term till the policy matures. Tax benefits are also available to the insured under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

  3. Serves As A Source Of Cash

    Financial experts believe that a person must keep 6-8 month’s living expenses in the form of liquid asset. It is however difficult to reserve such a huge cash while meeting retirement and long term saving goals. But with a whole life plan, you can get the cash at the end of the premium payment term.

  4. Loan Option Available On Your Whole Life Plan Policy

    The surrender value of the policy increases over time and you can borrow against the policy’s surrender value at any time. This is a better alternative against borrowing against home or retirement accounts.

  5. Your Dependents Will Benefit From This Plan

    The return will prove to be an additional financial source in the family. This plan is ideal for estate planning individuals who want to pass on their estate to their legal heir as it helps create wealth.

Eligibility Criteria for Whole Life Policy:

The eligibility criteria i.e. minimum/maximum entry age, premium payment term, etc., will differ from one insurer to the other. To get the details about the eligibility criteria for your chosen policy, you are advised to contact your insurer directly who can guide you better.

Whole Life Policy Riders:

Most insurance policies are accompanied by certain riders which help enhance the protection provided by the policy. Some of the commonly available riders with whole life insurance policies are critical illness rider, accelerated sum assured rider, hospital cash rider, partial/permanent disability rider, premium waiver rider, accidental death & dismemberment rider, among others. For the riders available with your policy, please contact your insurance provider.

Popular Whole Life Policies Available:

There are multiple leading insurers in India who offer competent and customizable whole-life policies at affordable rates. Some of the most popular choices available are listed below.

  1. ICICI Pru Whole Life

    • Survival benefit- Sum assured and bonuses are payable during the premium payment term.
    • Life cover benefit- In the event you die, your dependent will het twice the sum assured along with the bonus that was collected during the premium payment term.
    • Whole life cover- Additional sum assured is payable in the event the insured dies after completion of the premium payment term or at maturity that is when he turns 100 years of age.
    • Regular bonus is declared at the end of the financial year.
    • Rider to Enhance coverage – this plan comes with several riders which can be taken to enhance the coverage provided by the plan. The rider available are Accident and Disability Benefit Rider, Critical Illness Rider and Income Benefit Rider.
    • Tax benefits can be availed as per the prevailing Income Tax Laws.
  2. Max Life Whole Life Super

    • Guaranteed lifetime protection.
    • Flexible premium payment terms.
    • Flexible bonus option.
    • Paid up additions withdrawal.
    • Riders are available.
    • Terminal illness benefit.
    • Maturity benefit is paid when the policy matures.
    • Death benefit is payable to the dependent.
  3. IDBI Federal Lifesurance Whole Life Savings Insurance Plan

    • This is a non-linked participating whole life savings plan.
    • 2 lump sum pay-outs are paid one is at the end of the premium payment term and the other is when the policy matures.
    • Family is secured for 100 years.
    • Guaranteed additions and bonuses are available to boost your savings.
    • Accidental death benefit can be opted during the premium payment term.
  4. SBI Life Shubh Nivesh

    • Maturity benefit is offered based on the plan option you have chosen.
    • Death benefit is available on endowment option and on endowment with whole life option.
    • Deferred maturity payment option is available.
    • Three riders are available. They are Preferred Term Rider, Accidental Death Benefit Rider and Accidental Total and Permanent Disability Benefit Rider.
    • Tax benefits are available as per the Income Tax Laws.
  5. LIC Whole Life Policy

    • Death benefit where the nominee will get sum assured plus the accrued bonus.
    • Maturity benefit after 40 years from the date of commencement of the policy provided the insured has turned 80 years.
    • Income Tax benefit is available provided all the premiums have been paid.

Whole Life Policy FAQs

  1. How is Whole life insurance as an investment?

    A. While whole life insurance mostly serves the purpose of providing protection, the Single Premium Whole Life Insurance policy is a particular kind of policy which offers the dual purpose of not only providing insurance cover but also acts as an investment.

  2. Can I borrow against my Whole Life Insurance policy?

    A. A whole life insurance policy not only provides cash value but also has no date of expiry, which enables the policy holder to easily borrow against their such a policy. For more details regarding borrowing against your whole life insurance policy, you can contact your insurer who can guide you better.

  3. What is Death Benefit in a Whole Life Insurance Policy?

    A. Death benefit is the annuity or pension which is paid to a beneficiary after the passing away of the life insured. The same concept is followed in whole life insurance policies where the beneficiary gets the amount of the life insurance policy as lump sum or through regular payments following the insured’s death.

  4. Is Whole Life insurance an option for senior citizens?

    A. Yes, whole life insurance is a viable option for senior citizens as this policy provides comprehensive cover and does not have any age limit attached under eligibility. Following the death of the insured, the beneficiary named in the policy will receive the payout / death benefit. Whole life insurance policies offer a number of useful benefits like tax exemptions, growth of cash value, permanent protection, uniform premium payments, cash access via loans and other withdrawal options.

  5. Are early withdrawals allowed under whole life insurance policies?

    A. Withdrawals from cash value may not be allowed under whole life insurance policies. However, you an check with your insurer for withdrawal provision under such a policy.

  6. Are whole life insurance policies suitable to supplement post-retirement income?

    A. Yes, whole life insurance policies are quite suitable to supplement one’s post-retirement income. The cash value of the policy can provide post-retirement income.


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Whole Life Insurance Plans Reviews

Page 1 of 50 1 2 3 4 5
  • LIC Life Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken life insurance policy directly through LIC agent.This was a money back policy for the tenure of 10 years .The premium is paid on quarterly basis .Each and everything was good and this policy is highly beneficial for family .I am paying the premium through cheque only.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 22, 2020
  • LIC
    LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance through LIC directly .This policy tenure is 20 years, will be getting some good returns. The payment mode is auto debit option. I am paying the premium on monthly basis of Rs.823 and this policy is still active on my name .I have got all the update about the policy through the agent .Even got my policy documents on time as well.This policy is highly beneficial and will be useful for me and my family.
    Was this review helpful? 1
    , kolkata
    Reviewed on Jan 21, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 3.5/5 "Pretty good"
    I have taken life insurance policy directly through LIC agent .This was a term plan it is applicable till the age of 70years old.I am paying the premium on half yearly basis ,This is a death benefit plan totally useful for family members .Each and every details about the policy was clearly shared by the agent.This policy is still active and much comfortable .
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 21, 2020
  • LIC Life Insurance
    "Best policy "
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance policy through LIC by an agent. This was a money back policy for the tenure of 20 years and i am paying the premium on monthly basis through online by ECS mode. I am paying Premium Rs.2800 and this policy is still active on my name.
    Was this review helpful? 0
    , kochi
    Reviewed on Jan 21, 2020
  • Tata AIA Life Insurance
    "Client communication must"
    0.5 4.0/5 "Great!"
    I have taken my life insurance policy from TATA AIA and it is a money back policy. I am not getting correct information i would request to send a mail regarding dividend every thing they should communicate. They take care of their customers concern. They take care of their schemes and also getting bonus.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken life insurance policy directly through LIC agent.This is a maturity benefit policy for the tenure of 20years ,I am paying the premium through agent as well as cheque .This policy is highly beneficial for family and this policy is still active. I am satisfied with the service so far.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 21, 2020
  • HDFC Life Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    My son in law has suggested a life insurance to take from HDFC Life. So I have taken on 2 years before. It covers my whole family. It is a single payment for this insurance. I am not aware about tenure period. I got all details about this policy and got documents on time.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    LIC has offered a Jeevan Anandh policy. While checking terms and conditions I felt pretty happy with their schemes so I had opted for it. Last year of July I got this policy. The tenure period of 20 years. I use to pay premium amount on quarterly basis of 5,200 rupees. It covers myself. No late payment issue.
    Was this review helpful? 0
    , keonjhar
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on one year back. The policy is for 25 years. I am paying premium on quarterly package the amount of 4K which is nominal. While getting this insurance my agent has given an information about the policy details. It covers myself. It is a money back policy.
    Was this review helpful? 0
    , keonjhar
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 4.0/5 "Great!"
    LIC has offered a Jeevan Anand policy and i am holding since 30 years before. Now I am paying premium amount once in 3 months with the premium of 1369 rupees. While getting this policy my agent has given all information about the policy details and the coverage value of Rs. 1L
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Need policy"
    0.5 5.0/5 "Blown Away!"
    All my relation have a life insurance policy from LIC so that i have taken the policy with them. I bought the policy almost 3 years. Total term period of the policy is 15 years. I have been paying the premium amount of Rs. 30000 on a monthly basis and my friend is working as a LIC agent has referred me about this policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken Life Insurance policy through LIC agent .This was a maturity benefit policy and this policy tenure is 20 years .I need to pay the premium within 3 months .The premium is paid on through the agent.This policy is taken for family benefits. The complete process was shared by the agent.
    Was this review helpful? 0
    , thane
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Best service"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 10 years back. The tenure period of policy is 19 years. I am paying premium on monthly basis and getting deduction on my salary 2480 rupees. While getting a policy my agent has given an information about the policy details. The agent has suggested this policy. So far I have not faced any issues, this covers only myself.
    Was this review helpful? 0
    , alleppey
    Reviewed on Jan 20, 2020
  • LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 4 years back. The tenure period of policy is 30 years. I am paying premium on quarterly package of 1832 rupees. While getting a policy my agent has given an information about the policy details. The agent has suggested this policy. So far I had not faced any additional charges. It covers only my daughter.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 18, 2020
  • LIC Life Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Purchased the LIC policy in the year of 2003. I have been paying the premium amount of Rs. 735 onces in 3 months. They are giving the sum assured amount of Rs. 50k approximately. I make the payment directly as cash . Next year it is going to complete and the total term period of this policy is 18 years.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jan 18, 2020
  • LIC Life Insurance
    "Best policy "
    0.5 4.0/5 "Great!"
    In LIC, they will give good returns and friend recommended hence I have chosen the same company for life insurance policy. I bought the Jeevan bheema in the year of 2017. Total term period of the policy is 15 years and i have completed 3 years.I am paying monthly Rs.1000 i pay the premium through the agent.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • LIC Life Insurance
    "Good Company"
    0.5 5.0/5 "Blown Away!"
    Chosen my life insurance policy from LIC and i have bought the policy 7 years before. LIC is a beneficial company for middle class people and after the term period i will be getting some bulk amount in our hand. My father has suggested me about this policy. Yearly once, i pay the premium amount of Rs. 19000. I used to make the payment through online.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jan 17, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    My life insurance policy was purchased from LIC because they have a good service. I'm paying the premium amount of Rs. 15,000 for the tenure of 20 years. Offered sum assured amount was sufficient for me. I used to make the payment in their branch and the staffs are giving good response. Its a tax covered policy.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 17, 2020
  • LIC Life Insurance
    "Best policy"
    0.5 4.0/5 "Great!"
    LIC has offered a Jeevan Anand policy for myself. I have taken this policy before 10 years. The tenure period was 20 years and i am paying EMI yearly Rs. 10,000 deducting from my salary in the mode of ECS. This is a money back policy and service was good.
    Was this review helpful? 0
    , pune
    Reviewed on Jan 17, 2020
  • LIC Life Insurance
    "Excellent Policy"
    0.5 5.0/5 "Blown Away!"
    Last month i have bought the child policy for my daughter and son. I have selected the policy duration of 15 years. I pay the premium amount of Rs. 50000 per year. Everybody told that LIC company is not cheating the customer and its a Government sector company. From the agent, i got the policy and he has explained the benefits as well.
    Was this review helpful? 0
    , pune
    Reviewed on Jan 17, 2020
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