Table of Contents
- Blog Introduction
- What Is Whole Life Insurance ?
- How Does Whole Life Insurance Work?
- Age Of Entry
- Policy Term
- Sum Assured Amount
- Bonus Rate
- Maturity Benefit
- Death Benefit
- Medical Test
- Policy Conversion
- Loan Facility
- Surrender Policy
- FAQ About Whole Life Insurance (Suraksha)
- Open Your Demat and Trading account with Zero Cost
Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Whole Life Insurance (Suraksha).
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 Whole Life Insurance (Suraksha). This will be a complete guide on Whole Life Insurance (Suraksha). Please read till end of the blog post to know the complete information about this Whole Life Insurance (Suraksha). 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 Whole Life Insurance ?
Whole Life Assurance policy is also known as Suraksha . It is an investment cum life insurance policy. It is a life insurance 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 your death will be paid to nominees or legal heirs.
How Does Whole Life Insurance Work?
- Decide the Sum Assured amount and purchase the policy at a Post Office.
- Choose one of the premium paying terms available for your age.
- The monthly premium amount will be decided based on your age, sum assured amount and the premium paying term.
- You need to pay the premium amount every month till the end of the premium paying term
- The bonus amount will be accumulated every year as per the bonus rate during the premium paying term
- When the premium paying term ends, you need not pay any premium further.
- You’ll receive the maturity amount when you reach 80 years of your age. The maturity amount is the total of the sum assured amount and the accumulated bonus.
- In case of death before 80 years of age, then the nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of death.
Age Of Entry
You can purchase this insurance policy between 19 years and 55 years of your age.
This insurance policy provides flexible term periods. You can choose a policy term period from 5 years to 50 years depending on your age of entry into the policy.
Sum Assured Amount
Minimum amount – Rs. 20,000. Maximum amount – Rs. 50 Lakhs.
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.
The Maturity amount will be at 80 years of your age, then the account holders receive the maturity amount. The maturity amount is the total of the sum assured amount and the accumulated bonus amount.
In case of death before 80 years of age, then the nominees or legal heirs will receive the entire sum assured amount and any bonus accumulated till the day of the death.
- 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.
You can convert this policy into Endowment Assurance (Santosh) policy after completion of 1 year and before 57 years of your age.
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.
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 Whole Life Insurance (Suraksha)
Where Can I open this Whole Life Insurance Policy
You can open your account and start investing in this whole life 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 Whole life 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 whole life insurance Policy
Yes you can. You can purchase this insurance policy between 19 years and 55 years of your age.
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