Understanding Term And Whole Life Insurance Policies

By Author: Pankaj Gautam
Total Articles: 17
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Life insurance, as we already know, is a type of insurance policy that supports beneficiary financially in the aftermath of sudden demise of the policyholder. No one can imagine the degree of financial problem that a family undergoes when its sole breadwinner is dead. The bereaved family not only undergoes emotional trauma but also undergoes a trauma of extreme financial hardship that makes the surviving status a very difficult situation. Under the condition of extreme financial hardship, it is very difficult to make both ends meet. Hence a life insurance policy gives financial protection to dependent of insured so that it can manage financial problems with comfort.

In the market, there are two types of life policies available – Term life policy and Whole life policy. Both policies have their respective features. Here in the article, we mention characteristic traits of both plans.

TERM LIFE INSURANCE

Term life assurance policy is a short term insurance plan. it usually has life span of 15 years. Hence it is quite suitable for people who look for short term plan that is financially affordable when it comes ...
... to paying premiums. It is also optimal for the people who are single and don’t have family members. Moreover, the death benefit is available with the plan.

If the policy holder dies before the end of the plan, then the insurer is accountable for paying Sum Assured to beneficiary. In return of the policy plan, the insured person has to pay certain amount of money as premiums to the insurer.

WHOLE LIFE INSURANCE

Whole life insurance policy is comprehensive plan. the insured person avails it to get a lot of coverage benefits. Typically such type of policies is more expensive than that of term policies, because, the insured person can cover himself for lifetime. In other words, the whole life policy is a long term plan and usually runs for the whole life of a policyholder. Premium payment is must with the policy and the insured person has to ensure that the premium is paid regularly at the due date.

Other than giving the insured person death benefit, the whole life policy also offers cash benefit to the insured. This means, if the insured surrenders the policy after some years, the benefit of cash value is returned to the policyholder by the insurer. In case the policy completes its term, the insured avails face value as lump sum. Max new york life insurance and metlife life insurance in India.