Term to 100 life insurance (also known as Term 100, or T100 insurance) provides lifelong coverage with level premiums up to age 100. While labelled term life insurance, T100 policies function more like permanent life insurance.
This guide examines how T100 works, its costs, benefits, eligibility, alternatives, and more to help you determine the best choice for your needs.
What is Term to 100 Life Insurance?
Term to 100, also called T100, is a form of permanent life insurance structured similarly to term life insurance. Unlike traditional term life policies lasting 10 year term life insurance, 20 year term life insurance or 30 years, T100 covers your entire lifetime up to age 100.
Here’s how it works:
- You pay a fixed premium every year until you turn 100 years old.
- After you turn 100, you stop paying premiums but maintain coverage for the rest of your life.
- Upon your passing, your named beneficiaries receive the death benefit payout, whenever that may be.
T100 is called “permanent” insurance because it lasts a lifetime. However, unlike permanent policies, such as whole life insurance and universal life insurance, T100 does not build cash value. It focuses solely on providing a death benefit to your loved ones.
How Does Term to 100 Life Insurance Work?
Policy Structure
A T100 policy runs until your 100th birthday. As long as you pay your annual premiums, you maintain coverage through age 100. After you turn 100, the policy continues, but you are no longer responsible for premium payments.
Fixed Premiums
A key feature of T100 is level, fixed premiums that do not increase over time. This rate stability allows you to budget accurately for the policy, even into retirement, when living on a fixed income.
No Cash Value
T100 policies only pay out a death benefit to your beneficiaries. They do not accumulate cash value like permanent life insurance plans. This helps lower premiums but means you cannot borrow or withdraw funds from the policy.
Pros and Cons of Term to 100 Life Insurance
Benefits of Term to 100 Life Insurance
Lifelong Coverage
The primary benefit of T100 is lifelong coverage. As long as premiums are paid, your beneficiaries will receive a payout upon your death, whenever that may occur. This ensures your loved ones are protected financially.
Predictable Premiums
Since premiums are fixed, you can plan your finances knowing what the policy will cost year after year. This is especially helpful for budgeting in retirement.
Lower Cost Than Permanent Insurance
T100 premiums are generally more affordable than whole and universal life insurance since the latter lacks a cash value component.
Estate Planning
T100 can provide reliable legacy protection as part of an estate plan. The set-it-and-forget-it coverage gives peace of mind that final expenses will be covered.
Drawbacks of Term to 100 Insurance
No Cash Value
Unlike permanent policies, T100 does not build tax-deferred cash value that you can borrow against, reducing flexibility.
Higher Premiums Than Term Life
While more affordable than permanent insurance, T100 premiums are higher than those of 10 year term life insurance, 20 year term life insurance, or 30 year term life insurance policies.
No Payout Past Age 100
The T100 policy provides no death benefit if you live beyond 100. Coverage expires on your 100th birthday.
Term to 100 vs. Other Life Insurance Policies
Term Life Insurance
Traditional term life insurance provides affordable coverage for 10, 20, or 30 years. It’s ideal for temporary needs like covering a mortgage. However, term life does not provide lifelong protection.
Whole Life Insurance
Whole life insurance offers permanent coverage plus a cash value account that grows tax-deferred. Premiums and death benefits are fixed. It’s more stylish than the T100 but offers more flexibility.
Universal Life Insurance
Universal life insurance also provides lifetime coverage and cash value accumulation. However, premiums and death benefits are adjustable, and this flexibility comes at an even higher cost.
What Does Term to 100 Life Insurance Cost in Canada?
T100 carries higher premiums than term life as a form of permanent insurance. However, it is generally cheaper than whole or universal life insurance. Premiums are level and do not increase with age. Exact rates depend on:
- Age at purchase
- Health status
- Coverage amount
- Product features and riders
Speaking with an insurance advisor is the best way to get accurate quotes. In general, purchasing Term to 100 life insurance coverage in your 30s or 40s is most affordable to lock in lower life premiums.
Who is Term to 100 Best Suited For?
T100 policies are ideal for:
- Individuals who desire lifelong coverage without cash value accumulation.
- Budget-conscious shoppers are seeking lower-cost permanent insurance.
- Older individuals focused on final expense planning and legacy protection.
- Anyone wanting simplicity, predictability, and premium stability.
Those who may want to consider other options include:
- People need temporary coverage for a set period.
- Those wanting to build policy cash value over time.
- Anyone requiring flexible payments or coverage amounts.
Applying for a Term to 100 Life Insurance Policy
Eligibility
To qualify for T100 coverage, applicants must generally be between ages 18 and 75 and meet the insurer’s insurance and lifestyle guidelines.
Application Process
Applying involves completing a life insurance application detailing your medical history and undergoing a medical exam. Coverage and premiums are determined based on your age and health status. Many policies allow you to add riders for accident or critical illness benefits.
Get a Customized Term to 100 Quote
If T100 seems a good fit for your budget and coverage needs, connect with an advisor to receive a personalized quote comparing rates from life insurance companies in Canada. An advisor can help you determine the right amount of coverage and guide you through the application process.
Term to 100 life insurance can provide your loved ones lifelong protection and premium stability. By understanding how T100 works and comparing it to other policy types, you can decide whether this unique permanent/term hybrid product aligns with your financial planning needs.
FAQs of Term 100 life insurance in Canada
Can I convert term life insurance to a T100 policy?
Many term life policies allow you to convert to permanent insurance like T100 when the term expires. This usually allows you to continue coverage without a new medical exam.
Is term 100 a permanent life insurance policy?
T100 is a form of permanent life insurance since it covers your entire lifespan. The "term" refers to the level premium period until age 100.
What age is best to buy term to 100 insurance?
The ideal age for the most affordable premiums is typically in your 30s or 40s. Buying earlier locks in lower rates for life. Waiting until later ages increases premium costs significantly.
What is the minimum and maximum coverage for a term to 100 life insurance?
T100 policies typically offer coverage ranging from $25,000 up to several million dollars, depending on the insurance provider. Minimums are usually around $25k-50k.
Does term 100 life insurance require a medical exam?
You must complete a medical exam during the application process so the insurer can assess your health status and determine premiums.
Can I renew the term to 100 life insurance after age 100?
No, T100 policies do not allow renewal after age 100. If you are still living, coverage expires upon your 100th birthday.
Is term to 100 insurance cheaper than whole life?
Yes, T100 premiums are generally less expensive than those of whole life policies since T100 does not include a cash value component.
Does term to 100 life insurance build cash value?
No. Term 100 policies only pay out a death benefit and do not accumulate cash value over time like some permanent life insurance plans.
Can term to 100 life insurance rates increase?
No, a key feature of T100 policies is that premiums remain fixed and level throughout the policy's life. Rates do not increase with age.
Is term to 100 life insurance good for final expense coverage?
Yes, T100 can provide an affordable way to cover final expenses as part of an estate plan since premiums are lower than other permanent policies.
What is the difference between term 100 and universal life?
Universal Life offers flexible premiums, adjustable coverage, and cash value accumulation. Term 100 has fixed premiums, set coverage, and no cash value component.
At what age do term 100 life insurance rates go up?
For T100 policies, rates do not go up with age. Your premium is set at the age you purchase coverage and remains at the level until you are 100.
What is the average cost of term 100 life insurance?
Depending on the coverage amount purchased, average T100 premiums may range from $400-$500 annually for age 30, $700-$900 for age 40, and $1,200-$1,500 for age 50.
