All you want to know about whole life insurance policy

1. What is the whole life insurance policy?

Whole life insurance is also referred to as permanent life insurance. It provides you with coverage for your entire life; as long as you make premium payments on time. This option is good for long-range goals and there are guaranteed cash values which you can use later for temporary needs or in emergency cases. It is best to get this policy when you are young since your annual premiums will be lower. 

2. Whole life insurance plans are suitable for?

The whole life insurance policy is suitable for people of all ages.

Whole life insurance policies are classified into:

•Pure whole life - the coverage is for entire duration of life, premiums are payable continuously throughout the life of the insured till death.
•Limited payment whole life insurance - the risk coverage is throughout the life, but the premiums are paid for limited and shorter period.

3. Am I paying a right amount of premium? How to find out if my premiums are high and the cover is low?

A whole life insurance provides fixed amount of benefits and the premiums are also fixed. So there is no risk of premium being high and the cover low, but it depends on which type of whole life insurance plan you are willing to purchase.

4. How to claim whole life insurance policy money? Generally how long will the claim take?

The life insurance pays benefit on maturity or on the death of insured person, but payments are not done if the life insurance company is not informed when policyholder dies. You need to keep policy papers ready at hand and know the details of filing a claim with insurance company. Once the claim is submitted you receive the settlement and the most important is original death certificate without which you cannot claim.