These are an important group of conventional insurance
products. Ideally they are Plans where premiums are payable till death and
claims are payable on death. There should not be any maturity claim in a whole
life policy. These policies are best suited to pay estate duty or other similar
taxes that a person’s estate becomes liable on his death. But companies have
devised many features that project their Plans better than the Plans of
competitors. In marketing, especially financial service marketing, it is the
perceived benefits that rule the roost. There are with profit whole life plans
as well as without profit whole life plans. There are life long premium paying
policies and limited period premium paying policies. There are whole life plans
that allow conversion to endowment plan after passage of a stipulated period.
In one whole life plan of the Life Insurance Corporation of India premiums are payable till 80 years of age
of the life assured or for 35 years whichever is more. However in a variation
of this Plan premiums can be paid as single premium or in limited number of
years, for example 7 or 8 years. Non-forfeiture regulations (see Post on the
topic under the label ‘Policy’) are applicable to whole life policies. Some
life insurers may opt to give a maturity claim on whole life policy at 80 or
100 years of age of the life assured.
Key words:
Conventional insurance products
Whole life Plan
Estate duty
Maturity claim
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