**What is a Whole Life Policy?**
A whole life insurance cover or permanent life insurance policy provides life coverage until the death of the life assured. The sum assured of the policy or the coverage is decided at the time of policy purchase and is paid to the nominee at the time of death claim – when the life assured dies.
**Types of Whole Life Policy:**
There are 2 types of Whole Life Insurance Policies available in the market. Choose one of these which fulfill your needs.
1. Non-Participating Whole Life Insurance
2. Participating Whole Life Insurance
Ashok and Ravi were close friends. Both had two children. Both were prudent about financial planning. Ashok built two houses with an objective that children would remember him for legacy created by him. Ashok used his life savings in building these houses and was left with little for old age. Ashok took housing loan and had loan liability when he retired. Ashok has already given the houses to children and now was restricted to one room only.
Ravi built one house and bought one limited premium whole life insurance at age 40 with an objective that proceeds from whole life insurance would be used as legacy for children or for any other charitable clause. At age 70, Ravi had a cover of Rs 100 lakhs on his life which was increasing each year through accruing bonuses. Ravi had sowed a tree which was giving fruits after many years during his old age. Both children knew that father has a tax free cover of over Rs 100 lakh. All family took good care of him because Ravi had the power of nomination the death cover to anyone, even to a third party.
**Also Read:** Important tips for buying life insurance for the first time (https://www.insurancesamadhan.com/blog/7-important-tips-for-first-time-l...)
Ravi could manage his old age because he had such a wonderful product that is called whole life insurance recommended for legacy creation. There cannot be better legacy creation as per reasons given below:
**Features of Whole Life Insurane Policy**
* It is a long term product hence death cover keep increasing with age through accrued bonuses.
* All proceeds of death cover are tax free under section 10(10)D hence returns are tax efficient whereas property is subject to wealth tax and income tax post indexation.
* Owner has nomination facility till last day of life. Owner can change nominee (https://www.insurancesamadhan.com/blog/5-checks-while-naming-the-nominee...) and make someone who is taking care in old age.
* Now a days, many plans are available which offers guaranteed monthly income along with death cover.
* Plans come with loan facility from surrender value.
In developed economies, Whole Life Insurance is used as guarantee by old age home and hospitals because proceeds from whole life insurance can be used to pay off debts. In such economies, there are companies who offer advance against death cover and old people move around world for holidays.
In India, all Insurance companies offer whole life insurance but very few people opt for it because they want to see money in their life time. That is why, endowment insurances (https://www.insurancesamadhan.com/blog/endowment-life-insurance-policy-i...) are more popular. If we create many assets for legacy then why not create an asset through insurance. Comparatively, this asset has many unique advantages as given below:
**Advantages of Whole Life Insurance in India**
* All assets need management through supervision and maintenance cost, insurance is only a piece of paper requiring zero maintenance.
* All assets have regular tax implications but whole life has no tax implications.
* All assets can be stolen, robbed or taken over by government but whole life insurance is not at risk.
* All assets have complicated process for succession however proceeds from insurance is simple.
* Assets can depreciate but insurance proceeds would only appreciate.
So go ahead and take whole life insurance, there can never be a better option.
If you are facing any difficulty regarding Whole Life Insurance you can contact us at Redressal for Insurance Claims Rejection, Fraud, Complaints, Mis selling – InsuranceSamadhan (http://InsuranceSamadhan.com). We have helped resolve over 13,500 customer grievance cases in the past related to all types of Insurances, ULIPs and other financial products

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At Insurance Samadhan, we find solutions to any insurance-related issue that include lapsed insurance policy, assistance in case settlement, claim recovery in case of insurance fraud, assistance to NRI's in servicing their policies, and much more.