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All About Whole Life Insurance Policy and Benefits

Benefits of Whole Life Insurance Policy with its Insured's Dependents

In case you are wondering what is whole life insurance, then here is your answer. A whole life insurance policy is essentially a perpetual life insurance policy that provides coverage until the insured person's death, or till age 100, whichever is earlier. As long as the insured individual pays the premiums, the whole life insurance remains in existence. When a policy is acquired, the quantity of coverage is specified. If a policyholder lives up to 100 years old, they may receive matured endowment coverage as a maturity reward under whole life insurance in India. If the guaranteed person dies before the nominee, the candidate receives the money assured.

Benefits of Whole Life Insurance

If you are still confused about what whole life insurance means, then take a look at its benefits for a better understanding.

Lifetime Coverage

If you want to know what is whole life insurance, then unlike other life insurance policies, which are only suitable for a set length of time, the insured will be covered for the rest of his life. Other types of life insurance plans will expire, and getting a new one when you need one would be costly. A lump sum tax-free payment is provided to your nominee if you die. The insurance company may not reimburse you if you outlast the period. A whole – life insurance, on the other hand, protects you till you reach the age of 100 years.

Regular Payments

The policyholder receives the lump-sum amount as a maturity benefit and any bonuses, if declared, at the time of policy maturity. Furthermore, some life insurance plans provide a maturity benefit in the form of a monthly income stream. As a result, when the policy matures, the insured can receive the maturity benefit as a lump-sum payment or as a monthly income stream at specific periods.

Benefits From Taxes

Some people may be thinking about what a whole life policy and its tax benefits are. In that case, the premium paid for a whole life insurance policy may be deductible from the insured's taxable income under section 80C. Furthermore, the maturity claims are tax-free under section 10(10D) of the Income Tax Act of 1961. However, tax laws are subject to change.

Serves as a Cash Source

Individuals should save money for the future, according to experts, so that they can deal with life's unforeseen circumstances. However, while building a significant corpus in a short period is not simple, with the aid of a whole life insurance plan in India, one may financially guarantee their future and fulfil their long-term economic goals.

Provides a Loan Facility

If you keep asking yourself what is a whole life insurance policy and do you need it, then the answer is yes. Because whole life insurance protects the policyholder for up to 100 years, the policyholder can take out a loan against the policy. However, one can only obtain a loan if they have completed three policy years and paid all their premiums in full.

Benefits The Life Insured's Dependents

A whole life insurance policy is an excellent investment choice for providing financial stability to a family. If an individual chooses a whole-life plan, the spouse will benefit from additional financial protection that may be utilized as a retirement fund when the individual retires. If the insured partner dies, the insurance will pay a death benefit to the policy beneficiary.

Death Benefits

Knowing what does whole life insurance mean when it claims to provide death benefits is essential. The nominee receives the death benefit in the case of the insurance holder's untimely death within the policy's term. The insurance company pays the death benefit to the beneficiary as a total sum assured amount if you pay all of the policy's premiums on time.

Fixed Premiums

To know what is permanent life insurance, you must also know about the fixed premiums it provides. This life insurance policy's premium rate is fixed for the duration of the policy and does not increase or decrease throughout the policy's term period. So, if the policyholder pays a monthly premium of Rs.3500, they would pay the same premium throughout the policy.


Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance policy
  • The plan offers two options: Without Return of Premium and With Return of Premium
  • Under the Without Return of Premium variant, you have the option between Single Life cover or Joint Life Cover i.e., cover for your spouse under the same policy.
  • Flexibility in policy and premium payment terms