What are types of Whole Life Insurance Plan?

• Traditional Whole Life Insurance: A type of life insurance contract that provides insurance coverage for entire life. Unlike term life insurance, which covers the holder for a specified period. Upon the death of the policy holder, the insurance company pays the beneficiary. These plan also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow. This plan offers a guaranteed minimum rate of return.
• Single Premium Whole Life Insurance: With Single Premium Whole Life Insurance plan you get a lifetime coverage with only one lumpsum single payment. It accumulates cash value and avail tax benefit.
• Participating Whole Life Insurance: A participating whole life plan pays dividends i.e company share excess profit  with policy holder. The dividends represent the company position and his performance. The dividend shared is tax free.
• Non-Participating Whole Life Insurance: A non-participating whole life plan does not pay you any dividend. The advantages of such a plan is that its fixed costs is relatively low. 
• Limited payment Whole Life Insurance:If you want to pay premiums for a limited time or for limited numbers, the limited payment whole life insurance policy is perfact. It gives you the lifetime protection against limited number of payments. Since the premium are paid for shorter time its premium amount increases. Ex- It can provide the  payments for 10 or 20 times or upto the age of 65 or 85 years depending on plan you have taken
• Level premium Whole Life Insurance: The premium remain the same for the whole life . The premium paid on this type of policy will be higher at the beginning of its life but lower towards the end of its life.

1. Cash value: Your premium gets divided into three parts, one portion of your premium money goes towards the insurance policy another part towards administrative expense and the balance premium is invested in market to grow over time. This invested portion of premium is known as cash value. 
2. Fixed Premium: Premium is fixed, the insured has to pay the same amount of coverage for life time. Whole life premium does not consider the age or health of the insured. Your whole life insurance policy provide you lifelong coverage with no future medical exams.
3. Maturity benefit: On survival to the end of the policy term attaining a specified age mentioned under the plan the policy holder receive sum assured plus accumulated bonuses.
4. Guaranteed death benefit: In case of death of policy holder, beneficiary will get the Sum Assured plus all bonuses declared under the policy.
5. Policy loan: Insured can avail loan after three full years of premium payment. The policy loan amount can be maximum of 90% of surrender value. The interest is charged on outstanding loan and it varies from company to company from time to time.
6. Riders: Riders are additional benefits that can be purchased with a policy to minimize the risk.
   1. Accidental disability: In case of total and permanent disability due to accident an amount not exceeding the sum assured is payable to the insured. Some insurance companies give coverage to people who suffer from partial disability.
   2. Waiver of premium : If the insured becomes total and permanent disabled then some companies waive of premium i.e he doesn't need to pay any further premium for rest of his life and avail additional benefit mentioned in the terms and condition.
   3. Critical illness: Critical illness rider provide financial relief in case you suffer from illness mentioned in term policy. The policy generally covers 10-12 major illness.
7. Free look period : You can study the policy document thoroughly within 15 days. And if you disagree with the terms and condition of the policy,you can return the policy promptly.

Permanent Exclusions:-

• If insured commits sucide, whether sane of insane within 1 year from start of policy or reinstament of policy. The policy will get terminate and premium if any would be return back.

Rider Exclusions:-

• War, act of terrorism or violence.
• Involved in criminal activity or illegal act.
• Taking drugs or alcohol
• Participating in riot, strike, civil commotion, rebellion, war, invasion, hunting, mountaineering,

• In case of death, death claim form need to be fully completed and signed by Nominee. Inform the insurance company about death and submit the claim form along with death certificate to procees the case..
• In case of maturity. discharge voucher need to be filled by insured one month before the maturity.
• In case of accidental death submit Police report and postmortem report along with other documents like claim form and death certificate.
• Call your insurance broker or agent to assist you properly with filling up the forms.

Taxation:

Who can take out a policy on my life?
Only someone who has an "insurable interest" can purchase an insurance policy on your life. That means only husband and wife can purchase an insurance for each other. Or a person who is indirectly related to you like your employer, business partner, or creditors.But any stranger is not considered to insure your life.