An Insurance Policy that Covers You for 99 Years

For many years, people had few options for securing the future of their retirement phase or their families. Today, on the other hand, there are hundreds of options provided by the numerous retirement plan providers, so many, in fact, that the problem is choosing the right kind of plan for you and your family.

The need for life insurance, especially for the primary breadwinner of the family, is obvious. If the person who supports the family financially passes away unexpectedly, other family members may require additional support to survive. Therefore, to make sure that the family is supported in such an unfortunate incident, let’s find out what long-term plan can fulfill.

Nowadays, several person feel that they can secure their loved ones with a well-paying job. However, for many people, the case is opposite, and hence they opt for an insurance policy that guarantees a specific sum assured to be paid to their nominees in the event of an unfortunate occurrence. This assurance goes a long way in helping your family maintain their quality of life even during financial hardships.

The diversification of the target demographic and the growth of the insurance market have resulted in the need for new insurance plans. For example, the limited-term insurance plan allows its customers to pay off all their premiums within a short period.

Similarly, insurance providers are beginning to offer a kind of term insurance plan with assured coverage for almost a hundred years.

Why Would You Need a Hundred Years of Coverage?

Let’s answer the question by posing it in a different way first. Why would you not want a term insurance plan that extends to almost a hundred years? The answer is quite simple. It is to ensure that your family's financial burdens are cushioned for a longer period. In fact, after regaining hold of their finances, the beneficiaries may even begin to use the monthly payouts to invest further. 

In addition, several financial responsibilities may arise during different life stages. Whether it is funding your child’s education abroad, handling rising household costs due to inflation, purchasing important appliances, or planning a family wedding, a long-term policy provides a consistent and reliable income source. This way, no matter what challenges come their way, you and your family can continue to live with financial freedom. 

People worldwide realise that no savings will suffice, even after they reach retirement age. Ordinary retirement plans and insurance premiums are becoming insufficient due to the rising living expenses and accelerating inflation rates plaguing the global economy. This is why people want financial protection that covers them and their families for years ahead.

What Exactly Does a Whole Life Term Insurance Plan Entail?

A whole life term insurance plan guarantees your nominees' financial protection and, by extension, your entire family. Unlike an ordinary term insurance plan, these plans will extend up to 99 years (which effectively is a century). This is the longest possible term you can acquire as a shield for your beneficiary parties.

The 99-year term insurance plan will be applicable until you reach the age of ninety-nine. Effectively, if you take up this plan when you reach fifty, your policy will give you forty-nine years of protection. This can easily cover expenses until your kids reach the age where they can support themselves.

With the current pandemic scenario that takes no prisoners, unexpected passing away is more likely than ever, even for healthy individuals at their prime. People also realise that the assets that they may invest in today, like stocks, real estate, property, etc., may not be sufficient to support their children in the future, since the world is changing culturally and economically at a faster rate than ever.

Going for a whole life term insurance will minimise all of these hurdles for your children. After reaching the retirement age of sixty to seventy-five, your family will be provided with a monthly instalment that will cover your needs according to the estimates.

How Does a Whole Life Term Insurance Plan Work?

Like any other term insurance plan, the hundred-year plan extends to a particular time, in this case, until you reach 99 years of age (even if the policyholder unfortunately passes away before that age). The policyholder will pay an insurance premium every month. This is usually an affordable amount that the policyholder can choose, based on their current economic standing.

This compounded amount will be paid to the nominee towards the end of the plan. If and when the policyholder unexpectedly passes away before the culmination of the plan (which is highly likely since the overall life expectancy in India is now 68, despite a significant increase in the past decade (source)), the beneficiary would be provided with a guaranteed amount of money.

What are the Benefits of a Whole Term Insurance Plan?

There are several benefits to the 99-year plan. Some of them are:

1. Long-term Security for Your Family’s Financial Future: You can rest assured that your family will be taken care of, even more than when you avail yourself of a standard insurance plan. This is one of the most efficient and robust insurances an average middle-class citizen can afford today. Your family will survive and manage the situation well, especially if you can train them to invest the sum assured efficiently. The nominee will receive the lump sum after the policyholder's unfortunate demise, which can cover immediate expenses, such as funeral costs, rent, education, household maintenance, etc. 
   
   
2. High Affordability and Customisation to Suit Your Needs: The affordability factor is relatively high in the case of a ninety-nine-year plan. There is a high level of customisability that comes with these plans. You can determine the amount you want to secure as insurance coverage for your family after evaluating your household’s needs. Considering additional costs like marriage expenses, education fees, etc., as well as financial factors like inflation, you can decide the level of coverage you need. If your family leads a minimalist life and can survive on smaller sums of money, or if your spouse or children are already earning members, you can quickly settle for a smaller coverage.
   
   The affordability factor also comes into play when you look at the highly flexible options for the frequency of payment of the premium. This can be monthly, quarterly, or annual, depending on the stability of your pay.
   
   If you work in a field like business or in the entertainment industry, where the income is sporadic and comes in spurts of large amounts, the yearly plan will be beneficial for you. Transferring a large chunk of your income once a year will ensure that your family is well off in times of need. The 99-year plan, therefore, suits almost every profession out there due to its high customisability.
   
   
3. Avail of Tax Benefits Under Section 80C and 10(10D): Another advantage is the term insurance tax benefit applicable according to the Income Tax Act, 1961. This allows for maximum returns since deductions are allowed on the regular premium payments.
   
   There is also an exemption on the death benefit received by the nominee. The entire sum of money, along with the bonus, belongs entirely to the beneficiary, and they will not be taxed for the same. The deductions can go up to a limit of ₹1.5 Lakh, and can be deducted from the taxable yearly income.
   
   
4. Enhanced Coverage Through Optional Riders: Most 99-year plans also provide optional riders that can extend the existing coverage. These extensions or riders are added to the base coverage term, taking into account the possibilities of certain events. For instance, if the policyholder unfortunately passes away in an accident, the accidental death benefit, along with the sum assured, will be paid.
   
   There are many such riders available for partial or total disability resulting from an accident, the onset of critical illness, or a waiver of premium benefit. These can all be added to your plan for additional coverage.
   
   
5. Financial Support During Critical Illness: Some life insurance term plans offer coverage for critical illnesses. The financial hardship that an illness like cancer, stroke, etc., can make it difficult to manage. Expensive procedures like chemotherapy and dialysis may eat up your savings, and diseases like this can occur to anyone. However, please keep in mind that while the financial aid may come through, the following are certain cases where term plans may not offer coverage:
   • Natural disasters like earthquakes, floods, etc.
   • Unfortunate passing due to a terrorist attack.
   • An untimely accidental demise that has not been covered by a rider.
   • Unfortunate demise due to an undisclosed habit, such as smoking, drinking, diabetes, etc.
   • Unexpected demise outside of national borders.
   • Unfortunate demise due to terminal diseases.
   • Unforeseen demise due to critical illness.
     

Final Takeaway

In conclusion, whole term life insurance has its advantages. Still, you should ensure that you take proper care of yourself and disclose your habits and health details to the insurance company beforehand. Apart from that, when considering an insurance policy that offers coverage for 99 years, opt for a reputable insurance provider.

At Canara HSBC Life Insurance, accompanied by a wide range of plans tailored to your unique requirements, our claim settlement ratio testifies to our reliability. To learn more about a whole life term plan and its special features, connect today.