Sunday, March 22, 2009

WHOLE LIFE INSURANCE



What is whole life insurance?
Whole Life Insurance or whole Life Assurance is a kind of Life Insurance. As it’s name it gives protection for whole life. Whole Life Insurance is based on two main factors, one is death benefit another is Tax-delay. Normally Insurance Company offers flat premium. Whole Life Insurance is not more profitable than other Life Insurance plans. Policy Holder will get around same amount that he had paid as premium. In this Life Insurance policy the rate of premium is higher even return is low. So Whole Life Insurance is not profitable than Term Life Insurance.

Advantage of Whole Life Insurance
Whole Life Insurance has its own advantages. Once it bought there is no need any other Life Insurance for entire Life. At old age if you want to buy any other life Insurance then it will be costlier than Whole Life Insurance. In additional you have to take some medical check-up, strict paper work ect. So Whole Life Insurance is a helpful at old age.
Whole Life Insurance is a good option to save your tax. The amount which you had paid as premium will be cut in Tax amount.
This Life Insurance gives you life long Protection. Whole Life Insurance gives you continues protection, there is no need to renew your Life Insurance Policy like Term life Insurance.

Disadvantages of whole life insurance
Whole Life Insurance is not good for Investment. Its returns is very low than other Life Insurance Plans. There for it is not much profitable as an investment.
The rate of premium is higher. As its return is low and moreover its premium is high it is not value for money.


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