Term insurance for 90 years

Are term plans valid for lifelong coverage or only till I am working?


There are two types of life covers. One is term life and another is whole life. As the names suggest, term life covers are for a particular term and whole life is for your whole life.

Term Life Insurance

Term Life Insurance offers coverage only for a certain time period. The entire Sum Assured will be handed over to your dependents if the insured dies within the term of the policy. Most Term Life Insurance policies have a tenure of 20 to 40 years. They usually have a high Sum Assured and a low premium amount which generally remains the same throughout the term.

Whole Life Insurance

Whole Life Insurance provides lifelong coverage and also includes an investment component known as the policy’s cash value. You do not have to pay taxes on the accumulated interest amount. You can even apply for a loan or borrow cash against a Whole Life Insurance policy.

The premium amount remains the same for the complete tenure, the death benefit is guaranteed and the cash value account also grows at a guaranteed rate. Some Whole Life Insurance policies even earn annual dividends which you can leave in the account or withdraw.

You can choose to buy Term Life Insurance if:

You need Life Insurance coverage only for a certain period of time.

You do not wish to pay a higher premium amount.

You want an affordable insurance coverage, which covers your family and also gives you tax benefits.

You can buy Whole Life Insurance if:

You wish to have a good amount of retirement savings for medical or financial emergencies.

You wish to leave a good amount as inheritance for your children as the policy will give you good monetary returns.

Want to go for a Life Insurance plan? Click here.

BB Expert