Know Which Life Insurance Policy Suits You the Best!
2. Whole Life Insurance
Unlike Term plans, endowment plans offer insurance cover usually till 70 years; Whole-life plans could provide cover until your death, provided the policy is in force. This policy gives an option to pay premiums till a certain age or a specified period (called maturity age).
Once you attain the maturity age, you will get option to continue the cover till death without paying any premium or encash the sum assured and accumulated bonuses.
Whole life insurance policies also comprise a cash value part that increases with time. You can take a loan against this cash value or withdraw a part of it as per your convenience. But keep in mind that if the policy holder’s unfortunate demise takes place without paying off the loan, the death benefit paid to the beneficiaries will be reduced.
Also Read:
8 Tips to Consider Before Surrendering Your Insurance Policy
