Whole life insurance is a unique life insurance plan that provides coverage for the lifetime, which means that it offers insurance coverage to the policyholder for at least up to 99 years of age. The policy ensures that the insured person is financially safe and sound throughout his life. There are different types of whole life insurance option available in the market. You can choose the one that best suits your needs. Besides, here’re some of the major benefits of buying a whole life insurance option that you must know –
- Whole life insurance covers you for your entire life. In the event of the unfortunate death of the policyholder, whole life insurance offers guaranteed death benefits to the beneficiary.
- It offers tax benefits as per Section 80C of the Income Tax Act. The premiums paid towards the policy are exempt from tax deductions. Also, the payouts received by a beneficiary or policyholder are free from tax as per Section 10D of the Income Tax Act.
- Premium rates are set for a specific period. There will be no increase or decrease in premium rates during this term.
- It also provides loan facility which allows policyholder to take loan against the policy. Although, this is only possible if the policyholder has completed two years and has paid all premiums on time.
- Moreover, few whole life insurance plans provide payouts in case you outlive the premium payment term which not only helps in securing your family’s financial future but also fulfils your long-term financial objectives.