Q.Write a short note on: Whole life policy.

A whole life policy is a life insurance plan under which the sum assured (plus bonus) is paid to the nominee only on the death of the insured, providing lifelong protection for the family.

Whole Life Policy

A whole life policy is a type of life insurance policy that gives protection for the whole life of the insured. Under this policy, the sum assured along with any accumulated bonus is payable only on the death of the insured, to the nominee or legal representatives. This is a 2-mark AP Inter 2nd-year Commerce previous-year question.

Key points:

• Protection continues for the entire life of the insured.
• The claim amount is paid only after the death of the insured, not during his or her lifetime. …