Your Guide to Term 100 Life Insurance (T100)
See affordable life insurance quotes from PolicyMe and other top companies.
TL;DR: Is term 100 life insurance right for me?
Term 100 life insurance provides permanent insurance coverage designed to protect your family’s financial future. Unlike temporary policies that expire after a set number of years, this type of life insurance coverage remains in place for your entire lifetime, offering long-term financial security for beneficiaries who may rely on you indefinitely.
A term 100 life insurance policy may be the right type of life insurance for you if:
- You have financial obligations that will last (or surpass) your entire lifetime
- 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.
Term life insurance is the best choice for most Canadians. 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, also called term-to-100 and T100, is a type of permanent life insurance that provides coverage until death. “100” refers to the age at which you stop paying premiums, though your coverage continues.
Term 100 policies are cheaper and easier to manage than other permanent policies. They retain a key feature of permanent coverage (guaranteed payout) but remove the cash value aspect.
With Term 100, there’s no “term length” since you will be covered for your entire life no matter your age when you sign up or pass away. You choose a payout amount, pay fixed premiums until age 100, and then your loved ones will receive a payout whenever you die.
Term 100 is not the same as whole life insurance:
- No cash value: Unlike whole life or universal life insurance, T100 rarely features a cash value, aka, an investment-driven fund you can withdraw from or borrow against.
- No active management: Term 100 life insurance policies do not require any ongoing investment decisions, like other cash value policies.
Although T100 costs less per month than a whole or universal policy, it costs more than term coverage. A guaranteed payout does sound nice, but decades of high T100 monthly premiums may provide less value in the long term than buying a cheaper term policy and investing the rest.
Pros and cons of term 100 life insurance
Term 100 life insurance offers stable premiums and lifelong coverage; however, it is less flexible and more expensive than other life insurance policy types.
In other words, term 100 is best when your need for insurance never ends. But it’s not a good fit if your financial obligations will naturally disappear over time, like when your mortgage is paid off and your kids become financially independent.
“Generally between the ages of 50 and 60, you’re coming to the end of your first term and considering whether to get term into retirement age or opt in for a more expensive whole-life plan that’s going to act as final expense coverage whenever you pass away. The need for insurance is not significant but you’re looking for final expense coverage.” —Erik Heidebrecht, Customer Service Manager & Licensed Insurance Advisor
Term 100 life insurance rates in Canada
Insurance premiums for term 100 range between $60 and $400 per month on average, though rates depend on your province, insurer, age, and health. In Ontario and Quebec, pricing structures may differ slightly due to regulatory frameworks and underwriting practices.
How affordable a term 100 life insurance policy is will depend primarily on these factors:
- Smoking status: Non-smokers get better term 100 rates than smokers.
- Age: Insurance is 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.
- Coverage: The lower your coverage amount, the more affordable it will be.
Why this price? T100 rates are generally higher than term coverage and lower than whole life coverage. You pay more than term because you’re getting lifetime coverage. But you pay less than whole life because there’s no cash value.
Take a look at these averaged quotes for term 100 life insurance across providers to get an idea of how much you might pay for different coverage amounts.
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 type of coverage, it’s generally not the best option for most Canadians, though there are exceptions to this. Speak with one of PolicyMe’s licensed insurance advisors if you fall into any of the following categories:
- You don’t have dependents that require life-long support
- 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 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:
- 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.
- 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.
- 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, depending on the life insurance company and eligibility.
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. Instead, 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.
It’s also wise to speak with a financial advisor about how permanent life insurance could fit into your retirement plans. They can assess where this type of policy fits alongside an RRSP, for example, and the risks you face if you ever choose cancellation.
Riders and options (and when they might be 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's tax-free payout if you die as a result of an accident. Check the exclusions carefully.
- 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.
Some providers allow you to pair your permanent insurance coverage with add-ons like critical illness riders or long-term care benefits. While these features can increase premiums, they may provide additional protection if you're diagnosed with a serious condition.
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.
When it comes to term 100 life insurance, it’s usually ideal 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?
Your premium payments stop when you turn 100, but your Term 100 life insurance coverage is for life and does not stop when you turn 100. If you outlive 100, you can be sure your T100 coverage will continue as long as you live with no additional payments so long as you have paid all your monthly premiums.
Coverage after age 100: You are still covered for life and the policy will remain in force until you pass away.
Premiums after age 100: Your payments stop completely. Once you reach this milestone, your policy is considered fully paid-up.
Because each provider structures its policies differently, it’s important to review:
- Whether premiums are guaranteed to age 100
- Whether the policy becomes paid-up after that age
- Whether there are any reductions in coverage
For how expensive it is, term 100 is designed to provide certainty. As long as premiums are paid, your coverage remains in force for life.
How to pick a term 100 life insurance policy
Here’s what to consider when comparing term 100 options from different life insurance providers:
Premium guarantees and payment structure
Look for T100 policies with guaranteed level premiums payable to age 100. This means the monthly cost won’t increase as you age, and once premiums are paid through age 100, the coverage continues for life.
Compare how policies handle riders and features
Some T100 policies include optional features such as accidental death benefits or conversion privileges, while others are more basic. A policy that lets you adjust coverage, add riders, or convert to other types of life insurance policies may offer more flexibility, but at the cost of higher premiums.
Price relative to value
Speaking of costs, keep in mind that T100 premiums are generally higher than standard term life insurance. It’s valuable to compare costs across providers and plan types. Remember, small premium differences can add up over decades.
Your personal goals and needs
Ask yourself a few questions:
- Are you looking for coverage for lifelong obligations (estate planning, funeral costs)?
- Would a policy with cash-value growth ever be useful to you?
- Do you just want guaranteed lifelong protection with the simplest structure?
If your priority is lifelong coverage without investment complexity, term 100 may be a strong choice. But for many Canadians who primarily want affordable protection during their income-earning years, a traditional term life policy is often a better fit.
How to apply for term 100 life insurance
If you are applying for a new term 100 coverage policy in Canada, here’s what you need to know about eligibility and applications:
- Typical issue ages: 18 to 70 or 85
- Health questions: Provide a basic medical history.
The health questionnaire helps providers determine eligibility and calculate your insurance premiums. Some providers, including Manulife, may require additional underwriting steps based on your age and medical history.
You can avoid new medical underwriting by converting an existing term policy into a T100 policy, if permitted by your provider.