Whole of life insurance
What is Whole of life insurance?
Coverage for whole of life
Example: Mr. Mike pays premiums for 7 to 10 years and then he stops paying but at any point in time
he dies his beneficiaries will get the sum assured
Why should I buy Whole of life insurance?
• It may be slightly more expensive then term life plan but it gives returns on premium unlike term life plan
• If you live too long and have no beneficiaries left simply encash the plan and spend it.
• Whole of life plans can also be used for retirement
• Gives you the option of choosing funds of your choice
What other benefits can i avail apart from life cover?
Critical illness – lump sum payout if major illness like Heart attack, Liver failure, Kidney damage, cancer
Permanent total disability – Permanent and Total Disability is when the Relevant Life Insured is totally and permanently disabled preventing them performing any occupation for remuneration
Dismemberment benefit – This Additional Benefit provides a lump sum payable on the loss by the Life Insured of sight or limb.
Hospitalisation benefit – If a Life Insured under this Policy, on the recommendation and approval of a Doctor, is admitted for a surgical operation to any Hospital or confined to a Hospital for treatment other than for surgical purposes, the Company will pay to the Life Insured the amount of the Hospitalisation Sum Insured
for each day hospitalised after the third day. Payout up to $2800 weekly can be obtained
Long term care benefit – This Additional Benefit provides for the payment, by means of a series of up to ten annual instalments, of the Long Term Care Sum Insured should the Life Insured become incapable of performing four or more Acts of Daily Living.
Aeroplane cover – If the death of the Life Insured occurs as a direct or indirect consequence of war, invasion, act of foreign enemies, hostilities or war-like operation (whether war be declared or not), civil war, mutiny, civil commotions, assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, riot, military or usurped power or any act of any person acting on behalf of or in connection with any organisation actively directed towards the overthrow or to the influencing of any Government or ruling body by force, terrorism or violence, then no amount will be payable underthe Aeroplane Cover.
Family income benefit – This Additional Benefit provides a regular level income payable from the date of death of the relevant Life Insured untila selected Termination Date.
Accidental benefit – This Additional Benefit provides a lump sum payable if the Life Insured dies as a direct result of an Accidental Bodily Injury
Waiver of premium – If at any Regular Premium due date prior to the Policy Anniversary preceding his 65th birthday the Life Insured shall have been totally disabled for a continuous period of at least 26 weeks the Company will, upon recognition of such disablement, waive the Regular Premium.
What are the disadvantages of Whole of life plans?
• More expensive as compare to term life plans
• Fund values can become negative and might have to pay more premiums in future
• Premiums have to be paid for a specific period or else the plan can lapse
• Has direct impact due to market moments
What are the advantages of Whole of life policy?
• Somebody in the family definitely gets the sum assured
• Policy holder can opt to choose as many rider benefits as possible
• Increase and decrease of coverage and addition or deletion of benefits at any given point in time possible
• Can take joint life both death plans meaning if the first life dies one pay out is made and when the second life diesanother payout is made
• Second life can continue the coverage after the first life dies.
• Permanent asset and covers financial losses
• Supports income payout during old age if long term care benefit is opted for
• Can choose vanishing premium term
• Can pay lump sum premium and be covered whole of life