If you’re researching life insurance options and come across “Term 100 life insurance,” you might be a bit confused. Isn’t term insurance supposed to end after a set period, such as 10, 20, or 30 years? How can a policy be both “term” and “for life”?
Well, you’re not alone in your confusion. The name “Term 100” is misleading, but once you understand what it means and who it’s designed for, it becomes clearer. In fact, for some Canadians, it’s the perfect balance between affordability and long-term financial security.
Let’s explore what Term 100 life insurance is, how it works, and whether it might be a good fit for YOU!
“It’s hard to plan for the unexpected because the thought of losing a loved one is difficult,” says Annie Campoli, vice-president of distribution, life and health at TD Insurance. “Unfortunately, life doesn’t always go as planned. When a loved one passes away, life insurance can step in to help provide financial security for your family.”
Help protect the financial security of your loved ones, Chatelaine
First of All, What Is Term 100 Life Insurance?
Even though it’s called Term 100, this type of life insurance is actually a permanent policy. Yep. The name comes from the fact that you’ll pay fixed premiums until you reach 100 years old, but the coverage itself never expires.
So, if you live past 100, whether it’s 101, 102, or even longer, you’ll still have that coverage in place. Once you hit 100, you stop making premium payments, but your protection continues for the rest of your life. Pretty cool, eh?
What sets Term 100 apart is that it doesn’t include an investment or cash value component. It’s straightforward insurance, unlike whole life or universal life policies that often come with savings or investment features.
In a nutshell, Term 100 is a way to secure lifelong coverage without the complexity and expense. There are no confusing projections, no market risks, just straightforward, affordable protection that lasts a lifetime.
Why Do People Choose Term 100?
Not everyone needs lifelong coverage, but for those who do, Term 100 life insurance offers a solution.
If you’re in your 40s or 50s and your term policy is about to end, you might still want coverage. You want something reliable, a policy you can set and forget. Or perhaps your mortgage is paid off, your kids are independent, and your main focus is now on protecting your spouse or your estate.
That’s where Term 100 comes in. It provides a tax-free death benefit that lasts the rest of your life. This is incredibly helpful if your estate needs to deal with taxes on assets like a cottage or an investment property. Instead of your family having to rush to sell belongings or dip into their savings, they receive a guaranteed payout to handle those costs.
Term 100 is also a great option for those who want to leave a meaningful legacy. Whether that means donating to a charity or giving a financial gift to someone special, this coverage works. The predictable premiums make budgeting easier, and since there’s no cash value accumulation, it’s typically more affordable than whole life insurance.
If you’re looking for lifelong protection at a fixed price and don’t want the extra bells and whistles, Term 100 could be just right for you.
How It Compares to Other Life Insurance Options
If you’ve already looked into term insurance, you know those policies are designed to cover temporary needs. They’re great while you’re raising kids, paying a mortgage, or actively earning an income, but they expire at some point.
But what if you’ve outgrown term insurance, or maybe you prefer the security of knowing your family will receive a benefit, no matter when you pass away.
Compared to whole life insurance, Term 100 is usually a lot more affordable. Especially if you’re primarily interested in the insurance, not the investment. Whole life premiums are much higher because they’re funding both the death benefit and a growing cash value.
And universal life? That’s a whole different beast with more flexibility, but also more complexity and risk. If you’re not into tweaking investment allocations or managing long-term performance, Term 100 is refreshingly simple.
What About the Premiums?
Term 100 life insurance premiums are guaranteed and level. That means once you’re approved and your policy is issued, the price won’t go up. Not at 65, not at 75, not even at 99.
Of course, because it’s lifelong coverage, it does cost more than a 10- or 20-year term policy. However, for permanent protection, it’s usually far more affordable than whole life insurance.
Your insurance premium is influenced by a number of factors. Your age, health, smoking status, and the level of coverage you select all impact how much you pay. Typically, the younger and healthier you are when you apply, the better the rate.
It’s also important to remember that this policy doesn’t have a cash-out value. If you decide to cancel it later, you won’t get any money back. That’s why it’s crucial to think of this as a long-term commitment. You’re securing coverage for life, but you need to keep the policy active to maintain that protection.
Is It Easy to Get a Quote?
YES, and you should! Getting Term 100 quotes is simple and can be done online through most Canadian life insurance platforms, like TermCanada.
Once you have your quotes, take a bit of time to compare different providers. Weigh the premiums with your budget and find a company that feels like a good fit for you. If you’re in good health, you might even find some policies that don’t require a medical exam. Keep in mind that older applicants may need to undergo more thorough underwriting.
If you’re unsure whether Term 100 is the right choice for you, working with an independent broker like those at TermCanada is a smart move. We can help you compare term, whole, and universal policies side by side, so you can make the best decision for your situation.
Who Should Probably Skip Term 100
Let’s keep it real—Term 100 isn’t for everyone.
If your main concern is protecting income while your kids are young or paying off a mortgage, regular term life insurance is probably your better bet. It’s cheaper and designed for those specific “what if” scenarios during your working years.
If you’re looking for life insurance that also acts as a savings account or a way to reduce taxes, you might want to consider whole life or universal life insurance. Just keep in mind that these options typically come with higher premiums, so it’s important to plan accordingly.
Finally, if you’re on a tight monthly budget and need basic coverage for a specific period, Term 100 may feel like overkill. There’s nothing wrong with going for a simple 10- or 20-year term policy now and reassessing later.
Final Thoughts
Term 100 life insurance might not have a strange name, but it’s one of the best tools for people who want long-term, affordable coverage. It doesn’t pretend to be an investment. It doesn’t build wealth. It’s not trying to be your retirement plan.
What it does offer is security. Predictability. And peace of mind that your loved ones won’t be left scrambling when the time comes.
If you’re thinking long-term, want permanent coverage, and don’t want to pay for extras you won’t use, Term 100 might be exactly what you’ve been looking for.
The best way to find out? Get a quote at TermCanada today. Compare your options. And choose the policy that gives you confidence today—and every day after.
