What happens to the face amount in a Straight Life or Continuous Premium policy at age 100?

In a Straight Life or Continuous Premium policy, when the insured reaches the age of 100, the face amount of the policy is paid out, regardless of whether the insured is alive or deceased at that time. This characteristic is a defining feature of whole life insurance policies, which are designed to provide coverage for the lifetime of the insured.

Typically, a whole life policy accumulates cash value over time, and upon reaching age 100, the insurance company is obligated to fulfill the contract's terms by paying out the full face amount. This ensures that the policyholder or their beneficiaries receive a guaranteed benefit, reflecting the fundamental purpose of life insurance: to provide financial support.

This payout occurs without any additional conditions, which underscores the security offered by this type of policy. It allows individuals to plan for their financial legacy, knowing that their policy will deliver value upon reaching this milestone age.