Whole life insurance is a type of permanent life insurance, which means the insured person is covered for the duration of their life as long as premiums are paid on time. Permanent life insurance differs from term life insurance, which covers the insured person for a set time (usually between 10 and 30 years).
Like most permanent life insurance policies, whole life also offers a savings component called “cash value.”
The amount of coverage is defined when the policy is purchased and is paid back to the nominee at the time of the demise of the assured person. Usually, the maturity of the whole life policy is 75-80 years. If the person assured dies earlier, the nominee is given the sum assured. But, if the person confirms it survives at 75-80, the insurance provider pays the matured whole life policy coverage to the policyholder.