Your Guide to Term 100 Life Insurance (T100)

TL;DR: Is term 100 life insurance right for me?

A term 100 life insurance policy may be the right type of life insurance for you if:

• You have indefinite financial obligations
• You want a more budget-friendly option than universal or whole life insurance
• Your health prevents you from qualifying for another term life insurance policy

For the majority of Canadians, term 100 life insurance is unnecessary. Assessing your health and coverage needs can help you avoid overpaying for coverage.

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Our take

Most Canadians are best served by term life insurance. For those who can’t qualify—or whose financial obligations last longer than a lifetime—term 100 life insurance is the simplest, most affordable type of permanent coverage.

What is term 100 life insurance?

Term 100 life insurance is a type of permanent life insurance that provides coverage until death. Unlike whole life or universal life insurance, “T100” seldom features a cash value—that is to say, an investment-driven fund you can withdraw from or borrow against.

All of this makes term 100 life insurance both easier to manage and cheaper to buy. With PolicyMe’s Permanent Life Insurance, your premium payments are fixed and stop on your 100th birthday, while your coverage continues for the rest of your life.

Term 100 life insurance rates in Canada

How affordable a term 100 life insurance policy will depend primarily on:

• Your smoking status: non-smokers get better term 100 rates than smokers.
• Your age: It’s generally cheapest for people in their 20s or early 30s, and because you pay level premiums for life, it’s best to lock in low rates early.
• The amount of coverage you choose: the lower your coverage amount, the more affordable it will be. 

We averaged quotes for term 100 life insurance across providers to give you an idea of how much you might pay for varying amounts of coverage.

Term 100 life insurance rates: $750K in coverage

^{* Average monthly rates for a 30-year-old applicant with $750,000 of coverage.} 

Term 100 life insurance rates: $500K in coverage

^{* Average monthly rates for a 30-year-old applicant with $500,000 of coverage.} 

Term 100 life insurance rates: $250K in coverage

^{* Average monthly rates for a 30-year-old applicant with $250,000 of coverage.} 

Term 100 life insurance rates: $100K in coverage

^{* Average monthly rates for a 30-year-old applicant with $100,000 of coverage.}

Who should choose term 100 life insurance?

Term 100 life insurance is a specialized product for very few Canadians. Speak with one of PolicyMe’s licensed insurance advisors if you fall into any of the following categories:

Term 100 life insurance may not be the right choice if…

• You don’t have any dependents
• You have a high net worth or complex estate planning needs
• Your financial obligations will end after 10-30 years

How to choose life insurance: term 100 vs. whole life vs. universal life insurance

When it comes to deciding the length of your life insurance term, the biggest deciding factor is the length of your financial obligations. If you’re concerned about covering a mortgage or business loan, choose term life insurance. It’s affordable, easy to buy, and it lasts for as few as 5 years and as many as 40, so you don’t have to pay for years of unnecessary coverage.

If you’re not sure when your financial obligations will end, permanent life insurance may be the right choice for you. Here are a few questions to help you figure out your life insurance needs:

1. When will your dependents reach independence? If your children are on track to independent adulthood, you may only need enough term life insurance to last until they turn 21. Permanent life insurance is better suited to the parents of special needs children who want to leave behind a lump sum for caretaking.
2. Are you trying to build wealth? Term 100 life insurance policies don’t usually include a cash value, i.e., an investment-driven fund. If you want to withdraw from or borrow against your life insurance policy in the future, you may want to consider universal or whole life insurance.
3. Do you qualify for another term life insurance policy? Allowing your term life insurance plan to expire and applying for a new one is an affordable way to decrease coverage. That said,if you’re unlikely to pass the application process due to a negative health event (and you like your coverage as is), you may be able to convert your term life insurance to term-100 life insurance and skip the health questions.

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The bottom line: If you don’t have long-term dependents or health complications, you can probably skip term 100 life insurance.

How to choose a coverage amount

Permanent life insurance guarantees that you’ll leave something to your beneficiaries, or the people who receive your life insurance payout. In these cases, you probably aren’t thinking about tying up a mortgage or a business loan–you’re thinking of the people in your life who will survive you.

Unfortunately, it’s much harder to calculate the needs of a loved one than a loan. While you can use a life insurance calculator, we recommend speaking to an advisor who can help you add up your expenses and project them into the future. PolicyMe’s team of licensed experts can help you discover your options and find the best solution with no purchase obligations.

Riders and options (and when they’re worth it)

A term 100 plan can be paired with several riders. Just remember, your premiums will increase if you choose any of the following add-ons:

• Accidental death benefit rider: Increases your policy tax-free payout if you die as a result of an accident.
• Child or spouse term rider: Provides temporary coverage for a family member.
• Disability waiver of premium: Stops premium payments and fees if a total disability prevents you from working ever again.
• Inflation rider: Ensures your policy keeps pace with inflation by providing an adjusted payout.
• Long-term care rider: Allows you to access your death benefit early to pay for healthcare costs if you’re diagnosed with a chronic illness. 

All of PolicyMe’s term life insurance products include a conversion rider, allowing you to convert your policy to Permanent Life Insurance at any time up to and including your 69th birthday.

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Our take

When it comes to term 100 life insurance, it’s best to keep your coverage light and your premiums low. You must pay them for the rest of your life if you want to keep your coverage.

What happens when you turn 100?

Assuming you’ve kept up your payments, term 100 life insurance coverage continues past your 100th birthday—but your premiums don’t. PolicyMe and most other insurance companies will stop charging insurance premiums but maintain your coverage for the rest of your life.

FAQ: Term 100 life insurance