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What is a whole life policy?

A whole life policy is a plan which provides risk cover for the entire life of the assured
By OLM Desk | September 14, 2017

What is a whole life policy?

Ritika Mankani, Noida

A whole life policy is a plan which provides risk cover for the entire life of the assured. These plans are structured in such a manner that the policyholder has the option to pay premiums up to a certain age, say for instance, 80 years. This age is commonly referred to as the ‘maturity age’. On attainment of the maturity age, the policyholder no longer has to pay the premiums. At this stage, most of the insurers offer an option to the policyholder either to continue with the cover or to encash the maturity proceeds. In case the policyholder opts for the cover, he would not have to pay any further premiums and the cover would continue unto his death. On the other hand, if he opts otherwise, he receives the maturity proceeds and the policy ceases to exist.

 

olmdesk@outlookindia.com

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