1. About Term Life Insurance

Whole life insurance is a type of permanent life insurance policy that provides coverage for the entire lifetime of the insured, as long as premiums are paid. Unlike term life insurance, which provides coverage for a specified period, whole life insurance guarantees a death benefit to the beneficiaries upon the insured's demise, whenever it may occur. Additionally, whole life insurance policies accumulate cash value over time, serving as a savings component that policyholders can access during their lifetime.

2. Eligibility Factors

• Age: Individuals typically need to be at least 18 years old to purchase a whole life insurance policy. The maximum age limit varies among insurers.

• Citizenship: Whole life insurance is generally available to Indian citizens. Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) may also be eligible, depending on the insurer's terms.

• Medical History: Applicants may need to undergo a medical examination to assess their health status. Insurers may consider pre-existing medical conditions during the underwriting process.

• Financial Stability: Insurers may require applicants to meet certain income criteria or provide financial documents to ensure their ability to pay premiums

3. Premium Factors

• Age: The age of the insured is a significant factor in determining the premium amount. Younger individuals typically pay lower premiums compared to older individuals.

• Sum Assured: The sum assured, or coverage amount, chosen by the policyholder directly impacts the premium. Higher coverage amounts result in higher premiums.

• Policy Term: Unlike term insurance, whole life insurance policies provide coverage for the entire lifetime of the insured, resulting in relatively higher premiums compared to term policies.

• Gender: Insurers may consider gender-based mortality rates when calculating premiums, with females often paying lower premiums compared to males for the same coverage.

4. Coverage

• Death Benefit: Provides a lump sum payout to the beneficiaries upon the insured's demise, ensuring financial security for loved ones.

• Cash Value: Whole life insurance policies accumulate cash value over time, which can be accessed by the policyholder during their lifetime through policy loans or withdrawals

5. Add on Covers

• Paid-up Additions: Allows policyholders to purchase additional coverage without undergoing medical underwriting, enhancing the death benefit and cash value accumulation.
• Accidental Death Benefit: Offers an additional payout to beneficiaries if the insured's death is caused by an accident, providing enhanced financial security.

6. Exclusions

• Suicide Clause: No benefit is payable if the insured commits suicide within a specified period after policy inception, typically within the first one or two years.
• Misrepresentation: If the insured provides false information or conceals material facts at the time of policy application, the insurer may deny the claim.
• War and Terrorism: Deaths resulting from acts of war, terrorism, or participation in hazardous activities may not be covered

7. Types of Term Life Plan

• Traditional Whole Life Insurance: Provides a fixed premium, guaranteed death benefit, and cash value accumulation over time, offering stable and predictable coverage.
• Universal Life Insurance: Offers flexible premium payments and adjustable death benefits, allowing policyholders to customize their coverage according to their changing needs and financial circumstances.
• Variable Life Insurance: Combines life insurance coverage with investment opportunities in market-linked funds, offering potential for higher returns but subject to market risks