Term 100 Coverage versus Universal Life Insurance

Posted on January 8, 2010 and updated July 2, 2014 in Assumption Life, Canadian Life Insurance Companies, Life Insurance Canada News, Manulife Financial, Permanent Insurance 2 min read

Term 100 coverage is a very straight forward form of permanent life insurance. The premiums are level for life and the coverage remains fixed for life. Most Term 100 policies have no cash values.

Universal Life coverage is available in many formats. The cost of insurance can go up on an annual basis, allowing for higher cash accumulation in the later policy years, or you can get a level cost of insurance where the premiums and the cost remains level for life (similar to a term 100 plan).

Universal life policies, with a level cost of insurance, offer applicants the ability to put extra funds in an accumulation fund. These values can be used to generate a paid-up policy in a limited number of policy years.

The premiums on Term 100 coverage are very similar to Universal Life coverage, with a level cost at the minimum premium.


Below are examples:

$250,000.00 – 40-year-old male, non-smoker
Manulife Term 100: $117.50/month.
Assumption Life Universal Life – Level Cost at minimum premium:$120/month (Assumption Life plans also have a built-in Guaranteed Cash Value at the minimum premium)

$250,000.00 – 50-year-old male, non-smoker
Manulife Term 100: $225.77/month.
Manulife Life Universal Life – Level Cost at minimum premium:$228.65/month

$250,000.00 – 60-year-old male, non-smoker
Manulife Term 100: $437.76/month.
Manulife Life Universal Life – Level Cost at minimum premium:$449.42/month

For additional details, you can contact us at 1-866-899-4849, or visit our Universal Life Insurance Instant Quote Page.

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