5 Reasons Whole Life Insurance is Right for You

2024-08-02

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Ever thought what happens to all the premiums you pay for your term insurance cover? Did you want that somehow you can get all the money back from the plan on survival? Perhaps you would want to consider the term plan with return of premium option.

What if you can have a better option – whole life plan with return of premium benefit? Here are the five situations where whole life term plan makes more sense for you-

1. You Want to Recover the Premiums Paid on Survival

The term insurance premium is usually a cost you incur to provide your family with a secure financial future. Normally, at the end of the term, if you survive all your premiums is sunk cost. Although considering the amount of money you pay as premiums the cost is nominal.

However, it would still be better if you recover all the money you paid upon surviving the policy term. Whole life term insurance from Canara HSBC Life does exactly that and returns your premium upon the maturity of the policy.

2. May Have to Continue the Life Cover Post Retirement

There could be scenarios where you may take loans which may continue beyond your retirement. Or you simply do not want your dependents to go without life cover, you would want to continue your life insurance plan well beyond your retirement.

The best whole life plans allow you to do so, that too while paying premiums only till 60. So that you can live worry-free in your retirement knowing your loved ones are financially safe with you or without.

3. Want the Critical Illness Cover for Lifetime

Some of the best whole life insurance plans, including i-Select+ from Canara HSBC Life, pay the benefit upon either diagnosis of a terminal illness, or upon death. Thus, with the whole life option, you enjoy the terminal illness cover till the age of 99 along with the life cover.

Thus, even if you encounter terminal illness well past your retirement your family will not have to bear the burden of treatment costs. This is one of the most unique benefits of the whole life term plan, which is difficult to avail with any other policy.

4. Leave an Estate for Your Grandchildren

This is what whole life insurance plans are most famous for, as the claim is almost certain under the plan. A whole life term plan is the only life insurance which pays the death benefit in case of natural death.

Thus, you have ample time to nominate your grandchildren for the benefit payout and transfer a tax-free estate to them.

5. Get the Maturity Benefit from a Term Insurance Policy

As unique as it may sound, it is true in case of whole life term insurance plans like i-Select+. The plan will continue until you attain 99 years of age. If you are blessed with long life and survive the term, you receive the entire death benefit as maturity value.

Alternatively, you can also use the policy for emergency fund requirements after your retirement. Unlike a normal term plan, the whole life insurance plan acquires surrender value. Thus, you can use the surrender value of the policy for any fund requirements in your post-retirement life.

So, the whole life insurance plans are long-term insurance plans where you can not only enjoy a sufficient life cover during your earning years but also well into your retirement. You can best use this policy as a lifetime emergency backup plan for self and family.

And in the best-case scenario, this policy will double up as a tax-free estate for the next generations.

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