Convertible Whole Life Assurance

What is Convertible Whole Life Assurance (Suvidha) ? | CWLA | 1 Best Investment cum life Insurance policy

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Blog Introduction

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Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Convertible Whole Life Assurance (Suvidha) . This will be a complete guide on Convertible Whole Life Assurance (Suvidha). Please read till end of the blog post to know the complete information about this Convertible Whole Life Assurance (Suvidha). Lets get started.

Before you read this Blog Post Please read the what is PLI to understand the basics of Postal Life Insurance.

What is Convertible Whole Life Assurance (Suvidha)?

Convertible Whole Life Assurance is postal life insurance policy. It is also known as Suvidha. It is an investment cum life insurance policy. It is a life insurance policy and it has the features of both “Whole Life Assurance (Suraksha)” and “Endowment Assurance (Santosh)” policies. This scheme is suitable for those who are unable to decide between “Whole Life Assurance (Suraksha)” and “Endowment Assurance (Santosh)” policies.

This scheme provides an option of starting with the Whole Life Assurance (Suraksha) policy and then converting it to Endowment Assurance (Santosh) policy after 5 years.

If you don’t convert within 6 years of taking the policy, then your policy will be continued as Whole Life Assurance (Suraksha). If you choose to convert, then your age should not exceed 55 years on the day of conversion.

Converting to EA: If you don’t convert your policy, then it’ll work like a Whole Life Assurance (Suraksha) policy where.

  • The maturity amount (sum assured amount plus accumulated bonus amount) will be paid to you when you reach the pre-determined maturity date
  • In case of death during the policy term, the sum assured amount and any bonus amount accumulated till the day of death will be paid to nominees or legal heirs.

Not Converting: If you don’t convert your policy, then it’ll work like a Whole Life Assurance (Suraksha) policy where.

  • The maturity amount (sum assured amount plus accumulated bonus amount) will be paid to you when you reach 80 years of age.
  • In case of death before the age of 80 years, the sum assured amount and any bonus accumulated till the day of death will be paid to nominees or legal heirs

Age Of Entry in Convertible Whole Life Assurance (Suvidha)

You can purchase this insurance policy between 19 years and 50 years of your age.

Policy Term of Convertible Whole Life Assurance (Suvidha)

This insurance policy provides flexible term periods. 

Converting to EA: If you decide to convert this policy into Endowment Assurance policy after 5 years, then you can choose a policy term period from 6 years to 39 years depending on your age of entry into the policy.

Not Converting: If you don’t convert this policy, then you’ll run it like Whole Life Assurance policy. In this case, you can choose a premium paying term period from 10 years to 41 years depending on your age of entry into the policy.

Sum Assured Amount

Minimum amount – Rs. 20,000 , Maximum amount – Rs. 50 Lakhs

Bonus Rate

Converting to EA:

If you choose to convert this policy to Endowment Assurance after 5 years, then the bonus rate of Endowment Assurance policy will be paid.

The current bonus rate is Rs. 52 per Rs. 1,000 Sum Assured per year.

Not Converting:

If you don’t convert this policy to Endowment Assurance, then the bonus rate of Whole Life Assurance policy will be paid.

The current bonus rate is Rs. 76 per Rs. 1,000 Sum Assured per year. The bonus rate is not fixed and it changes from time to time as announced by the Government.

Maturity Benefit of Convertible Whole Life Assurance (Suvidha)

Converting to EA:

If the account holder survive till the end of the policy term, then the account holder will receive the maturity amount. The maturity amount is the total of the sum assured amount and the accumulated bonus.

Not Converting:

If the account holder survive till 80 years of your age, then the account holder will receive the maturity amount. The maturity amount is the total of the sum assured amount and the accumulated bonus amount.

Death Benefit of Convertible Whole Life Assurance (Suvidha)

Converting to EA: If die during the policy term, then nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of death.

Not Converting: If die before 80 years of age, then nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of death.

Medical Test

To purchase this policy, whether you need to undergo a medical test or not is based on the sum assured amount. If the sum assured amount is Rs. 1 Lakh or lesser, then you need not undergo any medical test.

If the sum assured amount is more than Rs. 1 Lakh, then the medical examination is compulsory to prove that you are healthy.

Loan Facility

Loan facility is available in this policy. You can apply for a loan after completion of 4 years. But, you will not get any bonus if you pledge your policy for a loan before completion of 5 years. The proportionate bonus on the reduced sum assured amount is accumulated if the policy is assigned for a loan after 5 years.

Surrender Policy

You can surrender the policy after completion of 3 years. But, you will not get any bonus if you surrender your policy before completion of 5 years.

The proportionate bonus on the reduced sum assured amount is paid if the policy is surrendered after 5 years.

FAQ About Convertible Whole Life Assurance (Suvidha)

Where Can I open this Convertible Whole Life Assurance (Suvidha) Insurance Policy

You can open your account and start investing in this ConvertibleWhole Life Assurance (Suvidha) insurance policy only in the Post office. So please visit your Nearest Post Office to open the account and know more about this policy.

I am a NRI Can I invest in this Convertible Whole Life Assurance (Suvidha) Insurance Policy ?

No. NRI cant invest in this policy. Please read PLI Introduction Blog post to know more about who are eligible to open this account.

My Age is 45 can I open the account in this Convertible Whole Life Assurance (Suvidha) Insurance Policy?

Yes you can. You can purchase this insurance policy between 19 years and 55 years of your age.

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