What Is Term 100 Life Insurance?

Loans Canada: The Country's Best Loan Comparison Platform

What Is Term 100 Life Insurance?

Written by Matthew Taylor
Fact-checked by Caitlin Wood

Updated August 23, 2021

What Is Term 100 Life Insurance?

Categories

Life Insurance Term 100 Term Life Insurance

For consumers with families and loved ones, life insurance is important as it helps to protect your beneficiaries by leaving them a tax-free benefit when you die. It can also help pay debts, end-of-life expenses, and provide extra support through retirement

There are many types of life insurance policies available, which can make choosing a life insurance policy difficult. One such type of life insurance that you may want to consider is Term 100 life insurance, which offers life insurance coverage for life.

What Is Term 100 Life Insurance?

Term 100 life insurance is a form of permanent life insurance, meaning that it offers coverage as long as the policyholder lives. The premiums that policyholders pay are the same throughout a policyholder’s life, provided they don’t miss any payments. Once they reach 100 years of age, they stop paying premiums while still enjoying the coverage. If they die and have a term 100 life insurance policy, their beneficiaries will receive the value of that policy tax-free. Unlike other kinds of permanent insurance, there is no savings or investment component to this policy, meaning that policyholders cannot withdraw from or borrow against their policy.

Term 100 Life Insurance vs. Whole Life Insurance

In this section, we will compare term 100 life insurance and whole life insurance.

Term 100 Life InsuranceWhole Life Insurance
Premium costs$375 – $400$400 – $450
CoverageDepends on the carrier, often $50,000 and upDepends on the carrier, usually $10,000 and up
LengthLifetimeLifetime
Death benefitTax-freeTax-free
Cash valueNoneportion of premiums paid monthly

Pros And Cons Of Term 100 Life Insurance

Just like any kind of life insurance, Term 100 life insurance has its pros and cons.

Pros

  • Lower Cost – Term 100 life insurance is cheaper than a whole life plan, making it a more affordable option
  • Term Doesn’t End Or Require Renewal – Unlike a term insurance plan, it doesn’t end, so there is no need to renew it. Term 100 life insurance is free after the policyholder turns 100, meaning that most elderly people experience significant cost savings when they need them the most.
  • Free After 100 – As mentioned, you are no longer required to pay a premium once you turn a 100. You’ll be covered for free until death. 
  • Premiums Stay The Same – Premiums on term 100 life insurance also stay the same and are often guaranteed to stay the same for life. The constant premiums mean cost savings for the policyholder in the long run. 
  • Tax-Free – Term 100 life insurance is also a tax-free benefit, meaning that a policyholder’s beneficiaries get more money when the policyholder passes away.

Check out how life insurance affects debt.

Cons

  • Your Policy Can Lapse If You Don’t Pay Your Premiums – This can be particularly difficult for elderly people on a fixed income. If you don’t pay your premiums, your policy can lapse. When this happens, it means you no longer will be eligible for coverage. If anything were to happen to you, your beneficiaries would not receive any payout. 
  • There Is No Investment Component – Also, unlike many other life insurance policies, there is no investment component. A lack of an investment component means that a portion of your premium will not earn non-taxable interest while remaining in your policy.

Here are 5 reasons you need a will in Canada.

Lookout How To Tell If Your Insurance Agent Is Misleading You

Loans Canada Lookout

LOOKING OUT FOR YOUR BEST INTEREST

Where Can You Get Term 100 Life Insurance?

You can generally get term 100 insurance from the same places you would get other life insurance policies. Banks, such as TD, BMO, Desjardins, and CIBC, offer term 100 life insurance. You can also get it through insurance companies, such as Manulife, and through insurance brokers like PolicyMe, Emma, Policy Advisor, Rates.ca, and Insurancehotline.com. 

Type of Life Insurance Availability Number of Brokers 
- Term life insurance - Permanent life insurance--
- Term life insuranceBC, AB, MB, ON, NS, PEI-
- Term life insurance - Whole life insurance - Disability life insurance - Critical illness life insurance - No medical life insuranceON16
Rates.ca logo- Term life insurance - Permanent life insurance - Critical illness life insuranceBC, AB, SK, MB, ON, NB, NS50+
- Term life insurance - Permanent life insuranceAll of Canada30+

Features To Consider When Purchasing Term 100 Life Insurance

There are several things you should consider when purchasing term 100 life insurance, including the following:

  • Minimum and Maximum Coverage Limits – Many providers will have coverage limits. To save time and avoid any unnecessary credit checks during application, research how much coverage you need. This will allow you to cross-check with the provider to see if they offer enough coverage. Depending on your situation, some providers may not offer enough coverage, while others may have too high of a limit. 
  • Age Restrictions – You must also consider that in general, insurance providers will not allow you to purchase certain insurance policies after you reach a certain age.
  • Check If There Are Any Exclusions – Generally, policies will have certain exclusions that will prevent the policy from being paid out. Make sure that you read the fine print when purchasing a policy so you know about these exclusions. For example:
    •  If the insurance company is given incorrect or incomplete information during the application process, such as age, health, or smoking habits, cannabis use, the insurance company has the right to deny or adjust the benefit payout. 
    • Deaths due to suicide in the first years of coverage are also usually not paid out.

Find out if you can get a life insurance policy without a medical exam.

Should You Get Term 100 Life Insurance?

If you want to pay the same premiums for life, which would result in long-term cost savings, Term 100 life insurance may be for you. Also, if you want to leave behind a tax-free benefit for your loved ones, and to have an insurance plan that doesn’t run out, you might want to consider term 100 life insurance.

Other Types Of Life Insurance

Besides term 100 life insurance, there are two other types of permanent insurance – whole life insurance and universal life insurance.

Whole Life insurance

As the name implies, whole life insurance lasts for a policyholder’s lifetime, as long as they continue paying their premiums. Premiums are guaranteed, so they don’t increase. There is a savings component, where part of the premium each month goes to a savings account, which is managed by the insurance company. Policyholders can invest the money in this account or can withdraw from it or borrow against it when they need to. Withdrawals are tax-free. It works best for people who want a guaranteed savings account and long-term protection.

Universal Life Insurance

While universal life insurance is similar to whole life insurance, there are some key differences. You can change how much you pay for your premiums at will, which will change the amount of your death benefit. You can also withdraw from or borrow against the savings account without cancelling your insurance policy, as long as you have enough money in the account. Universal life insurance is best for those who require flexibility in their insurance policies.

Term 100 FAQs

What happens if I reach 100 but haven’t passed away yet?

When it comes to term 100 insurance, you will usually pay premiums until you turn 100 years of age. You will still be covered even after you stop paying your premiums after the age of 100. 

How much life insurance do I need?

It really varies by person. How much life insurance you need can depend on a variety of factors, including how much debt you have, how much you owe on your mortgage, and how many dependents you have. Generally, however, you should have life insurance worth at least five to seven times your yearly income after taxes.

Are the rates guaranteed for term 100 life insurance?

Generally, the premiums for term 100 life insurance remain the same for life, as long as you pay them on time.

Bottom Line

Term 100 life insurance is one kind of permanent life insurance. It is different from whole life insurance and universal life insurance in the sense that policyholders stop paying premiums after they reach 100 years of age. Unlike other kinds of permanent life insurance, there is also no savings or investment component to the policy. This kind of life insurance policy is best for those who would prefer to have consistent premiums to pay throughout their lifetime, want lifetime coverage, and want to leave behind a tax-free benefit for their beneficiaries.

Matthew joined the Loans Canada writing team in 2021 while was finishing up a Bachelor's degree at the University of Saskatchewan. It was there that he discovered his love of writing. His work has appeared in several publications, including the Canadian Student Review and NewEngineer.com. In his spare time, Matthew enjoys reading, geocaching, and spending time with his family and pets.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.