Whole Life Insurance Policy

A whole life policy continues as long as the policyholder is alive. Basically it provides long-term financial protection to the dependents.It is particularly usefull as a means of protecting some of the expected wealth transfer that a parent would be aiming to make to his or her children when he or she dies.There are two kinds of policies available particapiting and non-participating. Non-participating policies only offers a guaranteed sum on death and participating policies offers the guaranteed sum assured , bonuses and other benefits. In whole life insurance plan the risk is covered for the entire life of the policyholder, that is the reason they are called whole life policies.

The nominee of the beneficiary are paid the policy monies and the bonus only upon the death of the policyholder. The policyholder does not get any money during his or her own lifetime, that means there is no survival benefit to the policy holder.