Ask any one who is above 60, how much would they want to leave behind in assets when their time comes.

“Maximum possible” would be the answer… whatever they have would look a little short.

Is there a way one can create an asset which will pay in CASH and a lot of it during one’s life time and also after that to the children and grandchildren??

Yes there is, and it is cheap if you buy it today.

That is the WHOLE LIFE INSURANCE POLICY for you.

It is a myth that people don’t need life insurance once they are above 60. Unfortunately, the short sightedness with which Life insurance plans are bought and sold makes one to believe either Life insurance is a useless product or if at all required it is enough for a short term.

Both are basically flawed assumptions.

First of all no one says NO to life insurance per say, they only object to paying premiums for it,  and that’s why they want to keep it for a short term.

If Life insurance is available free of cost, there will be a long Q to buy it.

It is a common knowledge that one’s family’s income depends on one being alive, and life insurance

gives assurance that in case of death the family gets money and compensates the income or part of it.

It is up to the individual to decide if the family should be assured of that or should they be left on their

own.

If yes, then one can decide how much would be required and for that you have experts who can help you get the right amount of assurance which is called “Sum Assured”.

Once you have answered “How much” then the next question is for “How long” you need that assurance??

Here is the catch..

We are talking about Life insurance right?? And one does not know when one’s day is going to be, so why bother about the number of years life insurance should be there. Let it be there for the whole life and if the purpose of Life insurance is to pay money when death happens let it pay whenever it happens;

Is it not the right way to look at it??

Why would you want to buy a Life insurance plan for 10-15-20 years?? 

How can one be sure that exactly at age 60 all financial commitments will be over??

What if protection is required for another 4 years??

Will it be possible to buy insurance that time?? How costly it would be??

Why should you loose a crucial Asset behind your name at a particular age??

Life insurance is an asset and that can be included in WILL, so if a large amount of money is going to be available through life insurance, it can be used to equalize bequeaths to heirs and others.

For Ex. You have the following assets: 

  1. House – worth Rs.75 lakhs
  2. bank deposits – 20 lakhs
  3. other assets – 5 lakhs

You have 1 daughter and 2 sons besides your spouse. How will you WILL your assets which are fair and equal to all of them??

Difficult.. is it not?? This is where an asset which will pay in CASH at your death makes life easy for every one. Which asset will pay in CASH when you are gone?? Only asset that can do is “Whole life insurance”.

Now add in the list of assets a whole life policy worth 80 lakhs.. Now you can apportion this money in whichever way you want to make the bequeath equal and fair. For Ex. House and other assets for the spouse along with 25 lakhs of life insurance money and the rest of  75 lakhs of life insurance money to be divided among 3 children. 

If your insurance policy is going to end by 60, don’t you think you are losing a valuable asset??

A whole life plan offers multiple benefits such as

  • Guaranteed Asset creation at a cheaper price.

  • Guaranteed maturity benefit during one’s lifetime

  • Guaranteed cash benefit to the nominees after death, whenever that happens before age 100.

  • Guaranteed accumulation and once accumulated never goes down in value.

  • Guaranteed uniform premiums through out the premium paying term. 

It is the guarantee which makes the “Whole life” a winner. In a world of uncertainties and market ups and downs, there is still a product hiding from you with too much goodness. 

Let us clear some more myths ..

Myth – In whole life plan one has to keep paying premiums till one’s death. 

Fact – No, one can select how long one wants to pay premium and there are limited pay whole life plans are available.

Myth – Whole life plans give lower returns. 

Fact –  The premiums of whole life plans are invested in fully secured long term government bonds and other fixed income securities making it one of the most safe basket of your portfolio. More over the bonus money declared every year forms part of your policy and this never goes down in value irrespective of which direction the stock market goes.

Whole life plan gives the solid foundation for your portfolio upon which you can build your other variable structures like, ULIP, MUTUAL FUNDS, and STOCKS etc.

 

Technically speaking, having a whole life policy reduces the standard deviation in your

over all portfolios due to the guaranteed cash value build up which allows you to take

slightly more risk in other investments like the ones mentioned above. 

Every smart investor who ever made money made it sure that, they had a firm ground below their feet before they built castles above it. Whole life just does that.

The views expressed are the individual opinion of the author and readers are requested to take decisions based on their own judgments and seek expert advice. The author does not hold any responsibility for decisions taken by readers.

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