Whole life or permanent insurance will pay a death benefit when you pass, even if you were to live to an advanced age of 100. Three major types of life insurance exist such as traditional whole life, universal life, and variable universal life insurance, and there are distinctions within each type.
In the case of traditional whole life, both the death benefit and the premium are designed to stay the same throughout the life of the policy.
The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets pretty high when the insured lives to 80 and beyond. The insurance company could charge a premium that would increase each year, but that would make it very hard for most people to afford life insurance at advanced ages. So the company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for seniors.
