Use whole life term policies for legacy planning

By doing so, your annual outgo will come down and returns will improve

Insurance companies have started to offer term plans that cover the policyholder for their entire life. While these products are better than existing whole life plans, which are endowment products, the premiums are higher than in a regular term plan.

“Terms plans that cover policyholders for their entire life are designed for those who want returns on premiums paid. Insurers do have term plans where an insured gets the premium back at the end of the policy term. But, the returns on the new plans are higher,” says Rajeev Chugh, chief financial officer at Aegon Life Insurance.

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