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Term Insurance Coverage Till 100 Years of Age in India

Term insurance policies are very popular because they are affordable, offer a large sum assured, have flexible options through riders, and provide tax benefits under Section 80C. This popularity has led to many different term insurance plans with various customization features and perks to meet policyholders' specific financial needs.

Term-to-100 life insurance (T100) is a type of permanent life insurance that covers your entire life, doesn’t need to be renewed, and never expires. In this article, we will explore the benefits, features, and critical considerations of opting for a term plan that lasts until you are 100 years old, helping you make an informed decision for a secure future.

Insights into Term Insurance Till 100 Years of Age

Here is a detailed overview of Term Insurance that covers you till 100 years of age:

Feature	Descriptions
Coverage Duration	Lifetime coverage, premiums paid until age.
Premiums	Level premiums throughout the policy term.
Cash Value	No cash value accumulation.
Premium Payment Cessation	Premium payments stop at age 100, but coverage continues.
Death Benefit	Tax-free lump sum payout to beneficiaries upon death.
Cost	Generally lower than whole life insurance due to no cash value.

What is a 100 Year Term Plan?

A 100-year term plan is a long-term life insurance policy that provides coverage for the insured individual for 100 years or until they reach that age. This plan offers level premiums, meaning the premium amount remains constant throughout the policy term.

The policyholder pays premiums for a specific term (usually 100 years), and if they pass away within this period, their beneficiaries receive the death benefit, typically a lump sum payout. However, there is no maturity benefit payout if the insured survives the term.

This type of plan is relatively rare, as most term life insurance policies cover shorter periods like 10, 20, or 30 years. A 100-year term plan offers protection for nearly the individual's entire lifespan.

How Term Insurance Till 100 Years of Age Work?

Term insurance till 100 years of age, often referred to as “Term to 100” or “T100” insurance, is a type of permanent life insurance. Here’s how it works:

1. Coverage Duration

The policy covers your entire life, up to and beyond your 100th birthday.

2. Premium Payments

Pay premiums until you turn 100. After your 100th, you no longer need to pay premiums.

3. No Cash Value

T100 policies do not accumulate cash value, unlike whole life insurance.

4. Death Benefit

The policy pays out a death benefit to your beneficiaries upon your death, regardless of when it occurs.

Understanding 100 Year Term Plan with Illustration

Ravi is a 35-year-old software engineer living in Bengaluru. He has a wife, Priya, and a young daughter, Ananya. Ravi is very conscious about securing his family’s future, so he looks into term insurance policies.

After some research, Ravi finds a term insurance policy that covers him until he is 100. This policy is attractive because it offers long-term coverage, ensuring his family is protected significantly.

Let’s see how it works in Ravi’s plan,

Ravi agrees to pay a fixed premium every year. The premium amount is determined based on his age, health, and the sum assured. The policy covers Ravi until he turns 100.

Scenario 1: Death During the Policy Term

Unfortunately, Ravi passes away at the age of 85. Because he had the term insurance policy, Priya and Ananya received the sum assured. This money helps them cover living expenses, education, and other financial needs.

Scenario 2: Outliving the Policy Term

If Ravi lives beyond 100 years, the policy expires, and there is no payout. This is a key feature of term insurance – it provides financial protection in case of death but does not offer any maturity benefits.

Advantages of Opting for a Term Plan Till 100 Years

Opting for a term insurance plan that provides coverage until 100 years of age can offer several advantages:

Extended Financial Security

Ensures that your beneficiaries receive financial support regardless of when you pass away, providing peace of mind for a longer period.

Affordability

Term plans generally have lower premiums than whole life insurance, making them a cost-effective option for long-term coverage.

Flexibility

These plans often come with flexible premium payment options and can be customized with additional riders for critical illness, accidental death, and more.

No Maturity Benefits

While this might seem like a disadvantage, it actually keeps the premiums lower since the policy is purely for risk coverage.

Coverage for Liabilities

Helps cover any outstanding loans or debts, ensuring that your family is not burdened financially.

Level Premium

Your premiums remain constant throughout the policy term, allowing you to manage your expenses without worrying about increasing costs.

Tax Benefits

Premiums paid towards term insurance are eligible for tax deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, and the death benefit is tax-free under Section 10(10D).

Are There Any Disadvantages of 100 Year Term Insurance Plan?

Like every insurance, a 100-year term insurance plan can have several disadvantages:

Disadvantages	Description
High Premiums	The long coverage period increases the likelihood of a payout, leading to higher premiums, which can strain finances, especially in later years.
No Cash Value	Unlike whole life insurance, these plans don’t accumulate cash value, so you can’t borrow against them or get any money back.
Reduced Dependents	By reaching 100, your dependents might be financially independent, reducing the need for insurance. Inflation and high premiums might also diminish the value of the payout.
Limited Flexibility	Changes in your financial situation could make it challenging to maintain high premiums over such a long period.

Who Should Opt for a Term Plan Up to 100 Years of Age?

Opting for a term plan up to 100 years of age is a strategic financial decision that suits specific individuals based on their circumstances, financial goals, and family responsibilities. Here are some categories of people who should consider such a term plan:

Young Professionals

Starting a term plan early in one’s career can be advantageous as premiums are generally lower for younger individuals. Opting for a plan up to 100 years ensures lifelong coverage without worrying about renewals or losing coverage due to age.

Individuals with Late Retirement Plans

For those planning to work beyond the traditional retirement age, a term plan up to 100 years can provide financial security and support any dependents in case of their untimely demise.

People with Long-term Financial Liabilities

Individuals with long-term financial commitments, such as a home mortgage that extends into late retirement, can benefit from a term plan that provides coverage up to 100 years. This ensures that their liabilities are covered and won’t fall on their family members.

Those with a Family History of Longevity

Individuals with a genetic disposition towards longer life spans may find a term plan up to 100 years beneficial to cover the risk of outliving their savings or other insurance policies.

Parents of Children with Special Needs

For parents who have children with special needs, ensuring financial protection throughout the child's life is crucial. A term plan extending up to 100 years can provide the peace of mind that their child will have financial support even after the parents are gone.

Wealth Transfer Planning

Individuals looking at estate planning or wealth transfer to their heirs may find a term plan up to 100 years useful. The death benefit can serve as a means to pass on wealth to the next generation or cover estate taxes, ensuring the preservation of their legacy.

Having Debts or Dependents After Retirement

Sometimes, debts or financial responsibilities last beyond retirement age. You might have taken a loan later in life or need to support a spouse or sibling. In these cases, having insurance until 100 years old can be helpful.

Planning to Work After Retirement

If you continue working and earning after the usual retirement age and your family depends on your income, a term insurance plan can ensure their financial security.

Factors to Consider When Choosing a Term Plan Duration

When choosing a term plan with a duration of 100 years, several key factors should be considered:

Age at the Time of Purchase

If you are younger, a 100 year term can provide lifelong coverage. However, if you are older, it may not be necessary to opt for such a long duration, as premium costs could be higher.

Financial Dependents

Consider how long your dependents will rely on your income. A 100-year term might be suitable to ensure financial security for multiple generations but assess whether such a long term is needed for your dependents.

Affordability and Premium Costs

Longer-term plans, especially those up to 100 years, can be more expensive than shorter terms. Ensure you can comfortably pay the premiums throughout the policy without straining your finances.

Inflation and Coverage Needs

Over time, the purchasing power of your coverage may diminish due to inflation. You may need to assess whether a policy with inflation adjusted cover or riders can help keep the benefit relevant in the long term.

Health Status

If you have a good health history, a long-term plan can make sense as it ensures coverage even as you age and may develop health issues that could increase premiums in future policies. However, getting a long-term policy may be more expensive or less advantageous if your health declines.

Retirement Planning

Think about whether you will need life insurance after retirement. Many individuals have fewer financial dependents and liabilities in their retirement years, which might reduce the need for life insurance as they get older.

Estate Planning and Legacy

A 100-year term could be part of your estate planning strategy if you intend to leave a financial legacy for your heirs or cover estate taxes. This may make sense if you want to ensure wealth transfer across generations.

Liquidity Needs

Some term insurance plans may include return-of-premium options or riders allowing partial withdrawals or coverage adjustments. Ensure the plan meets your liquidity needs as your financial situation evolves.

Alternatives to Term Insurance

If you need life insurance coverage, consider whether a permanent life insurance plan (like whole life or universal life) might offer better long-term value. These policies often have a cash value component that can be borrowed against or used for retirement.

Future Financial Goals

Assess your long-term financial goals, such as paying off debts, funding education, or maintaining a particular lifestyle. If your future needs do not justify a 100-year term, a shorter-term policy or another financial instrument might be more appropriate.

Comparison of 100-Year Term Insurance with Other Plans

Comparing a 100-year term insurance plan with other life insurance options, such as standard term life, whole life, and universal life insurance, involves understanding key differences in duration, cost, benefits, and flexibility. Here's an overview of each:

Feature	100 Year Term Insurance	Standard Term Life Insurance	Whole Life Insurance	Universal Life Insurance
Coverage Duration	Up to 100 years	10, 20, or 30 year	Provides coverage for the insured’s entire life	Provides coverage for the insured’s entire life
Premiums	Premiums are typically higher due to the extended coverage period	Premiums are generally lower compared to longer-term or permanent policies	Premiums are higher due to the lifetime coverage and cash value component	Premiums can be adjusted; you can pay more to build cash value faster or less if you have sufficient cash value
Cash Value	This type of policy does not accumulate any cash value	This policy does not build any cash value	This policy accumulates cash value over time, which can be borrowed against or withdrawn	Accumulates cash value that can be used for loans or withdrawals
Death Benefit	The death benefit amount is fixed and does not change over time	The death benefit remains constant throughout the term	The death benefit is fixed and guaranteed for the life of the policy	The death benefit can be adjusted based on the policyholder’s needs
Flexibility in Premiums	Premiums are generally fixed and must be paid regularly to keep the policy active	Premiums are fixed and must be paid consistently during the term	Premiums are fixed and must be paid regularly	Offers significant flexibility in premium payments
Investment Component	There is no investment component; the policy is purely for coverage	There is no investment component; it is purely for coverage	Includes an investment component that builds cash	Includes an investment component that builds cash value
Ideal For	Suitable for those seeking coverage for their entire life or up to 100 years	Ideal for covering specific financial obligations like a mortgage or children’s education	Suitable for those looking to leave a financial legacy or cover estate taxes	Ideal for those who need flexibility in premium payments and death benefit amounts
Drawbacks	The higher premiums and lack of cash value can be seen as disadvantages	The policy expires after the term, and there is no cash value accumulation	Higher cost and complexity due to the investment component and lifetime coverage	The policy can be complex and may require active management to ensure it remains in force

Key Considerations Before Opting for 100 Year Term Insurance

Before opting for a 100 year term insurance policy, it's important to consider the following factors:

S. No	Aspect	Description
1	Purpose of the Policy	Understand why you need a 100 year term insurance policy. It may be helpful in estate planning, legacy creation, or financial protection for dependents throughout your life.
2	Premium Costs	The premiums for such long-term policies are typically higher than those of shorter-term options. Ensure that the premiums are affordable in the long term, as any lapse due to non-payment can make the policy void.
3	Inflation Impact	Inflation may erode the purchasing power of the sum assured over several decades. Consider whether the payout will still meet your financial goals after many years.
4	Coverage Needs	Assess if you need coverage for such an extended period. Many opt for term insurance to cover a specific financial risk (such as loans or income replacement), which may not require a 100 year policy.
5	Health and Age	As you age, premiums for new policies will increase, and your health could impact your ability to purchase new insurance. A long-term policy can lock in coverage regardless of health changes.
6	Policy Riders	Review additional riders or benefits, such as critical illness riders or disability riders, which can provide enhanced coverage beyond just death benefits.
7	Surrender Value	Some 100 year policies may not have a surrender value if you decide to cancel them prematurely. Be clear on what happens if you no longer want or need the coverage.
8	Company Reputation	Choose an insurance company with a strong financial rating and a good reputation for customer service, ensuring they will be around for the long term.
9	Beneficiary Planning	Ensure your beneficiaries are clearly stated, and consider updating them over time as life circumstances change.

Premium Difference in 100 Years Term Plan and Typical Term Insurance Policy

Here are the key differences in premiums between these two types of plans:

Features	Term Insurance Till 100 Years	Typical Term Policy
Coverage Duration	These plans offer coverage up to 100 years, ensuring lifelong protection. Since the insurer is almost guaranteed to pay out the death benefit (assuming the policyholder lives to a typical lifespan), the premiums are much higher to account for this certainty.	These policies usually cover a specific term, such as 10, 20, or 30 years. If the policyholder outlives the term, no payout is made. The shorter duration and lower probability of payout keep premiums lower.
Premium Amount	Premiums are generally much higher because the insurance company takes on the risk of insuring the policyholder for a much longer period, increasing the likelihood of a claim.	Premiums are lower, especially for shorter terms like 10 or 20 years, because the chances of the insurer paying out are lower.
Premium Payment Period	Premiums are often spread out over a long period, sometimes until age 60 or 70 or for a fixed number of years, but they are typically higher.	Premium payments usually cease at the end of the term. These are often more affordable for younger individuals or those needing temporary coverage.
Risk Factors	The insurer assumes a much higher mortality risk, which is factored into the pricing. Even if premiums are level, they are calculated to reflect this long-term risk.	Risk is limited to the term period, so the insurer faces less long-term risk, which translates into lower premiums.

Comparing Premiums of 100-Year Term Plan vs. Typical Term Plan with an Illustration

Aarav, a 25-year-old software engineer earning ₹8 lakhs annually, decides to secure his future with a term insurance plan. He is torn between two options: coverage until age 65 or extending it to 100 years.

For a ₹1 crore term cover, Aarav calculates the premiums for both options:

Details	Coverage till Age 65	Coverage till Age 100
Annual Premium	₹14,000	₹28,000
Total Premium Paid	₹5,60,000 (paid over 40 years)	₹20,72,000 (paid over 74 years)

Aarav notes that the annual premium for the longer duration is double, resulting in a significantly higher total payment over the policy’s lifetime. While the 100 year coverage increases the likelihood of a claim, it also requires a substantial financial commitment. Balancing adequate coverage with prudent financial management, Aarav carefully considers his options.

Opting for a term insurance plan with coverage until 100 years offers lifelong financial security, ensuring your loved ones are protected even in your later years. This type of policy is crucial for those seeking long-term peace of mind, as it eliminates the need for policy renewals and the associated rising costs.

It’s particularly beneficial for individuals with dependents or those planning for estate taxes and final expenses. By securing a 100 year term insurance plan, you can provide continuous financial support to your family, safeguarding their future against uncertainties.

FAQs about 100 Year Term Insurance Plan

Is it possible to cancel or surrender a 100-year term plan?

Yes, it is possible to cancel or surrender a 100-year term plan. The process typically involves contacting your insurance provider and requesting the cancellation. Keep in mind that term plans generally do not have a cash surrender value so you won’t receive any money back.

How does the premium for a 100-year plan compare to shorter terms?

The premium for a 100-year term plan is generally higher than shorter-term plans. This is because the insurer is taking on more risk by providing coverage for a more extended period. Shorter-term plans have lower premiums but must be renewed or replaced more frequently.

Can I convert a 100-year term plan to a whole-life policy?

Many term life insurance policies, including 100-year term plans, offer a conversion option. This allows you to convert your term to a whole-life policy without undergoing a new medical exam. You need to check with your insurance provider to see if your policy includes this option and the specific terms.

What happens if I outlive my 100-year term plan?

If you outlive your 100-year term plan, the coverage ends, and no death benefit is paid. Some policies may offer a return of premium feature, where you get back the premiums paid if you outlive the term, but this is not common.

Are there age restrictions for purchasing a term plan till 100 years?

The age restrictions for purchasing a term plan that lasts until 100 years can vary by insurer. Generally, the maximum entry age for such plans ranges from 55 to 65 years. It’s best to check with specific insurance providers for their age limits.

What are the premium payment options available in 100 year term insurance?

100 year term insurance plan offers various premium payment options such as single pay, limited pay, and regular pay, depending on your financial planning needs.

Are there any riders available with 100 year term plan?

Yes, you can enhance your coverage with optional riders like critical illness rider, accidental death benefit rider, and waiver of premium rider.

What are the tax benefits associated with 100 year term insurance plan?

Premiums paid towards the Digit 100 Years Term Insurance Plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D).

Is there a surrender value for 100 year term plan?

Typically, pure-term insurance plans do not offer a surrender value. However, if you have opted for any riders or additional benefits, some surrender value might be associated with those.

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Disclaimer

This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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Author: Team Digit

Last updated: 15-01-2025