Imagine that you have worked your whole life, past the age of retirement, building a healthy and substantial fortune for yourself and your family. Now that you are in your Golden years, you want to make sure that the family fortune is distributed according to your wishes. While most premiums for insurance policies are based on age, carriers do have what is called term life insurance to 100. You can purchase this policy between the ages of 71-80 (check with a qualified financial advisor as each carrier may have different requirements). Just like level term insurance, the premiums for term life insurance to 100 remain unchanged and stop all together when you reach the age of 100. Even if you live to 120 years old, you will continue to be covered. This type of policy basically covers you for life.
Why Term Life to 100 is Ideal
Term life insurance to 100 is an ideal policy for estate planning. Usually, families put together estates if there is a substantial fortune to distribute. Even if there is a modest fortune, the goal is to make sure your heirs get their inheritance intact and also for your heirs to avoid paying taxes on what you leave them. With term life insurance to 100, benefits are paid tax-free upon your death. You will not only ensure that your funeral expenses are covered but also those capital gains taxes are also taken care of. For example, should you leave your children property such as houses, the capital gains on those inherited items would be paid. Ensuring that your heirs receive tokens of your legacy intact makes your gifts truly gifts. Who wants to be left a cottage in the country if you have to suddenly come up with a huge amount of taxes before you can enjoy the bequest? Surely, as the patriarch or matriarch of a large family, you could ensure that your children and grandchildren will continue to enjoy your legacy to its fullest.
If you outlive all of your heirs, term life insurance to 100 is also perfect for leaving a bequest to your favorite charity. You may purchase face value amounts of $10,000.00 to $1,500.000.00 (there are different versions of term life insurance to 100 that offer higher face values). If you choose to donate your death benefit to a charity, make sure to visit the charity to fill out all the appropriate forms. There are very specific questions that require answers before a charity can accept a gift in the form of life insurance.
Cash Back Options on Surrendered Policies
Some carriers have different versions of term life insurance to 100 policies as well as required number of years to pay before you can surrender a policy. For example, if you choose a carrier that has term life insurance to 100, the policy may require you wait until after 10 years before you can cash out the policy. If in the 11th policy year, for instance, you decide you no longer require insurance protection, you can surrender your policy in exchange for a one-time cash value as stated in your policy contract. Other versions of the policy might allow you to surrender the policy at any time with no time requirement. You would be allowed to surrender for the cash value stated on the policy.
As always, it is best to seek the advice of a reputable financial advisor to help you choose the best carrier as well as which type of term life insurance to 100 policy suits your needs.
Source by Sharon Taylor