Tips on Finding the Best Whole Life Insurance Policies


Bangalore: Once you have decided to invest in a life insurance policy, an important question needs to be answered-whole life or term life? If you have finally settled upon the former you need to have an accurate idea about its benefits as well as drawbacks. Certain Whole life insurance combines a term policy with an investment component. You can begin the policy at an early age and it will last until your death. But it is expensive as you are paying not only for the insurance, but for the investment portion as well. To make the policy worth its money, you should be extremely careful while choosing the policy.

First, you should compare the different policies available in different companies. Don’t go for the first policy that comes in your way. Once you pay for a policy and later on come across a good policy from some other company, you can stop the existing policy. But your whole money will be wasted. So it is always better to research before choosing a policy. This can be done on the basis of certain criteria

1. You have to consider your premium payments, which is different for different policies. One should have an idea regarding the amount he can pay as premium. This amount will be fixed and cannot be changed even if any serious financial crisis occurs in future.

2. The need of every individual varies from one another. So you should consider your needs for the present as well as future before choosing the best whole life insurance policies. Keep in mind that after 15-30 years your needs won’t be the same as it is now.

3. Try to know about the existing whole life insurance policies. Here are few-

Participating: If there is an excess in profit, the company will share it with the investor and these funds are non taxable.

Indeterminate Premium: In this the premium will vary every year, but will not exceed the maximum amount mentioned in the amount.

Limited Pay: These premiums are limited to certain number of years and you need not pay yearly for life long.