Whole life insurance is designed to keep your family or dependents financially secure in case of a future unfortunate event that may lead to a financial crisis. If you plan to buy a whole life insurance policy, here is a basic outline of how the policy works.
 

A whole life insurance plan offers a flexible choice of sum assured, policy terms, premium paying terms, modes, and a range of optional riders. Depending on how basic or extensive your sum assured, you should be able to select a policy term and premium paying term that allows you to pay affordable premiums. You can also pay your premiums as a one-time lump sum, as a limited pay, or throughout the policy term.
 

Ensure that the sum assured can cover your family’s financial needs in your absence. In the event of your death during the policy term, your appointed nominee will have to file a claim to avail of the death benefit sum assured. In case you survive the policy term till 100 years of age, you can either receive a maturity benefit in the form of savings or as a return of all the paid premiums, subject to the terms and conditions of the whole life policy and your life insurance provider.

Investing in a whole life insurance plan is a wise option if you want to ensure lifelong protection for your family against financial insecurities. With a whole life cover, you do not have to worry about renewing your policy since the coverage lasts until 100 years of age^~.

Yes, whole life insurance rates can be affordable if you select a suitable policy term and a premium paying term. Hence, even if your sum assured is high, you can calculate your whole life insurance premium with an online life insurance premium calculator and pay a reasonable amount.

Many whole life insurance plans offer a loan facility against the policy. However, there may be certain terms and conditions attached, such as the loan limit that you can avail of or at what point in time during the premium paying term you can get the loan.

The sum assured of your whole life insurance plan will depend on your family’s needs. Ensure that the sum assured is adequate enough to take care of their financial obligations and goals in your absence. Determining the life cover amount is important, especially if you have been the sole earning member of your family and your absence leads to a loss of income.

You can buy whole life insurance and nominate your child as the beneficiary if you want to secure their future against financial uncertainties. In the event of your death, your nominee will receive the sum assured under the policy. If your child is a minor during this time, you can appoint someone to handle the policy benefits on behalf of your child.

Yes, if you have a whole life insurance policy that offers maturity benefits along with death benefits, you can consider such a life insurance plan for your retirement. The life cover offered by a whole life policy can be especially beneficial for your family after your retirement as they can enjoy uninterrupted life insurance coverage until you are 100 years old.

The death benefit in whole life insurance is the sum assured that is predetermined at the time of policy inception. The life insurance coverage is offered to your family throughout the policy term, and after your death during the policy term, they receive the sum assured that will help them sustain their livelihood and fulfil any financial obligations.

Yes, if you want to ensure complete financial security for your loved ones in the event of your death, you can plan your whole life policy such that the sum assured will be a legacy in your absence. Not only will the sum assured cover their daily needs but can also act as a trust fund that can finance their future endeavours.

If you have a provision under your whole life insurance plan where your premiums will be returned to you on maturity, then you will receive the total premiums paid if you survive the policy term. However, the maturity benefit may not be payable in the event of your death during the policy term where the death benefit will be payable.

A whole life insurance plan gains cash value after the premiums for the first few years during the premium paying term have been paid in full. Once a policy gains cash value, the insured can choose to surrender their policy, though it is advisable to always continue the policy coverage.

You can choose the premium paying mode for your whole life insurance plan as per your preference. Under Single Pay, you pay only one lump sum premium for the whole policy term, while under Regular Pay, you pay the premiums for the entire policy term. With Limited Pay, your premium paying term will be shorter than your policy term.

Whole life insurance offers a death benefit or maturity benefit, depending on the nature of the policy. Generally, by surrendering the policy, one can receive the cash value or the surrender value of the policy. However, it would be advisable to continue the coverage and avail of the death/maturity benefit, as per the situation.

No, there is no provision for making any early withdrawals in a whole life insurance policy unless you choose to surrender the policy. In that case, you will receive the surrender value of the policy, and the coverage will be terminated.

A whole life policy can offer maturity benefits on your survival if you opt for return of premium plan option and on policy maturity. However, your spouse can utilise the death benefit as a retirement income in case of your demise within the whole life policy term.

If you have a convertible term insurance plan that is about to expire, you can choose to have it converted into a whole life plan. However, this will be subject to your life insurance provider’s terms and conditions and the availability of a convertible term plan in their offerings.

If you purchase whole life insurance at a young age or at the minimum entry age of 18 years, for most popular plan you can be assured of low premium rates throughout the policy term. But if you buy the policy in your 40s or 50s, your policy premiums will be much higher, owing to the increased health risks to your life.

Yes, whole life insurance can be especially beneficial for senior citizens as one need not worry about their insurance plan expiring. With coverage of up to 100 years of age^~, the premium payment options are also convenient and affordable for retired senior citizens.

If you are concerned about being able to pay your whole life insurance premium after retirement, you may want to opt for a single premium or limited premium plan under your policy. This way, you can either make a one-time investment in your policy or keep the premium paying term shorter than your policy term. As a result, after retirement, you needn’t worry about your policy premiums.

Whether you buy a term insurance plan or a whole life insurance plan will depend on your insurance needs. Since term plans offer life insurance coverage for a specified term, you can choose a flexible policy term for which your family needs life cover. With a whole life plan, you needn’t worry about having to renew the policy coverage as the policy covers you till 100 years of age^~.

• The complete name of Tata AIA Sampoorna Raksha Supreme is Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN:110N160V03) - A Non-Linked Non-Participating Individual Life Insurance Plan
• ^~Applicable for specific plan options. Please refer brochure for additional details.
• ^*Under Life Plus Option, an amount equal to the 105% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term as Maturity Benefit, provided the life assured survives till maturity and the policy is not terminated earlier.
• ^{^}Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.
• Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider (UIN:110B033V02 or any other later version) - A Non-Linked, Non- Participating Individual Health Rider, Tata AIA Life Insurance Non-Linked Comprehensive Health Rider (UIN: 110B031V02 or any other later version) - A Non-Linked, Non- Participating Individual Health Rider,  Tata AIA Vitality Protect (A Non-Linked, Non- Participating Individual Health rider (UIN:110B046V01), Tata AIA Vitality Health (A Non-Linked, Non- Participating Individual Health rider (UIN:110B045V01) are available under this plan
• Vitality is a trademark licensed to Tata AIA Life by Amplify Health Assets PTE. Limited, a joint venture between Vitality Group International, INC. and AIA Company Limited. The assessment under the wellness program shall not be considered as a medical advice or a substitute to a consultation/treatment by a professional medical practitioner.
• ^#Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
• ⁺⁺Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess, if any will be charged extra as per prevailing rates. The Tax Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
• This plan offers pure risk premium option under Life Option and return of premium benefit under Life Plus Option along with other benefits. Please refer sales brochure for complete details.
• This product is underwritten by Tata AIA Life Insurance Company Ltd. This plan is not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
• Insurance cover is available under this product. For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale.
• In case of sub-standard lives, extra premiums will be charged as per our underwriting guidelines.
• Buying a Life Insurance policy is a long-term commitment. An early termination of the policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
• This publication is for general circulation only. This document is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. This document is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
• Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company and this document is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

• L&C/Advt/2022/Nov/2766