Why will an insurance agent recommend a term life insurance till age 100?

As much as buying a term to 100 has its benefits (lower yearly premiums compared to that of a whole life usually), we have to keep in mind that this is the premiums that you'll be paying from now up till your passing!

If one were to compare side by side policies with the same Sum Assured, you can often find that the total premiums paid over the years for a term to 100 is usually a lot more compared to the total premiums paid for a Whole life plan of a payment term of say 20 or even 25 years (even with the larger yearly premiums).

What's more is that a term plan does not have cash value! So in the event that you live past 100 years, or decide that you're short of cash and need to surrender the policy, all your payments would have been for naught and you'll get nothing in return!

Hence, it is my personal opinion that a term plan should not be used in this sense where it replaces a whole life plan, but rather as a booster for temporary added coverage for financial protection for your loved ones/yourself in the event of unforseen circumstances. In terms of estate planning there are many much more suitable products out there that serves that need to a larger degree. Hope my thoughts help, thanks for reading! :)

Based on the current life expectancy (age 83 to 86, depending on gender), buying is term insurance policy that covers you till age 100 means that your nominees (or beneficiaries) will almost be sure to get the payout upon your death. This is based on the assumption that you pass away before age 100.

And for this purpose, there are a couple of reasons. For instance, some countries practise estate duty and life insurance payout can be used to pay part of this cost.

In like manner, a term insurance policy till age 100 creates legacy for your next generation - simply put, the rich gets richer. This is because for about a quarter of the premium (depending on age, coverage, health), you get four times the payout (higher if you pass away earlier).

While these are some uses for a term insurance policy, it depends on individual needs and whether such plans should be recommended in the first place, e.g. do you need to be insured till age 100?

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