Term 100 : Everything You Need to Know

Posted on March 13, 2020 and updated June 10, 2020 in Life Insurance Canada News 10 min read

 

What is Term 100 life insurance?

Even though it says “Term” in its title, Term 100 is actually a permanent policy. That means the premium doesn’t increase and the policy is in force for the life insured’s lifetime. Unlike other permanent policies, however, Term 100 does not have a cash value (cash savings that build up when you pay the premium). Think of Term 100 like a stripped-down whole life policy – you get lifelong protection, but since there are no extras, the premium is much lower. In fact, this is why most people love Term 100. It gives lifelong protection at a competitive price.

 

When do you need Term 100 insurance?

While some Term 100 policies expire when the life insured turns 100, most policies are in force for the person’s full lifetime. People choose Term 100 to fund a permanent need, such as final expenses, buy-sell agreements, charitable giving, and – of course – having life insurance without having rising premiums.

 

Term 100 vs. whole life: what do you need to know?

There are key differences between Term 100 and whole life insurance. It is important to understand these differences before deciding between these policies.

Feature

Term 100

Whole Life

Insurance protection

Yes

Yes

Coverage length

Typically, permanent but some policies expire when the life insured turns 100

Permanent

Cash accumulation

No

Yes

Ability to surrender the policy

Yes (however there is no cash value)

Yes

Costs

Slightly lower than whole life

Slightly higher than Term 100

Premium type

Fixed premiums

Fixed premiums

 

How do costs of Term 100 compare to costs of whole life insurance?

Let’s look at the following profile for a 35-year-old female non-smoker, no health pre-conditions, choosing coverage of $250,000.

Term 100 life insurance quotes

Whole life insurance quotes

SSQ Insurance

Desjardins Insurance

SunLife Insurance

Desjardins Insurance

$136.35 / month

$137.25 / month

$148.28 / month

$151.65 / month

 

Term 100 vs. universal life: what do you need to know?

Universal insurance is another type of permanent life insurance policy. This type offers a great deal of flexibility. How do costs of Term 100 compare to costs of universal life insurance?

Let’s again look at the following profile of a 35-year-old female non-smoker, no health pre-conditions, choosing coverage of $250,000.

Term 100 life insurance quotes

Universal life insurance quotes

SSQ Insurance

Desjardins Insurance

Ivari (former Transamerica)

BMO Life Insurance

$136.35 / month

$137.25 / month

$133.21 / month

$137.33 / month

 

Universal life insurance might be very comparable or even cheaper than Term 100, while offering the same coverage, but it also gives an option to put extra money into the policy of your choice.

 

Term 100 – fine print to know about

No grace period: You must pay your premium monthly/annually. There is no cash accumulation that can be used to pay the premium. If you miss a payment, the policy can lapse after 30 days.

Premiums cannot be adjusted (unless coverage reduced): Term 100 is for life, so you must factor in the cost of your insurance during retirement. Remember to adjust for this premium during times of unemployment as well.

No coverage changes: Some term policies allow you to reduce your coverage if you stop smoking, your health improves, or if you wish to adjust your protection level – but this is not typically available for Term 100.

No return of premium: If you cancel the policy, do not expect premiums to be refunded.

 

Quote comparisons: Desjardins Term 100 vs BMO Term 100 vs Canada Protection Plan Term 100

Here is an overview of how Term 100 policies from three different providers compare for two different customer profiles:

Profile #1: 35-year-old male non-smoker, no health pre-conditions, choosing coverage of $500,000.

Desjardins Insurance

Term 100

BMO Life Insurance

Term 100

Canada Protection Plan

Simplified Elite Term 100

$300.15 / month

$300.75 / month

$311.00 / month

(or even lower if there are
no any health issues)

 

Profile #2: 35-year-old female non-smoker, no health pre-conditions, choosing coverage of $500,000.

Desjardins Insurance

Term 100

BMO Life Insurance

Term 100

Canada Protection Plan

Term 100

$256.95 / month

$259.92 / month

$320.40 / month

 

Is Term 100 the right insurance policy for me?

The choice of the right insurance policy depends on your situation. When dealing with permanent life insurance policies, it is highly advisable to work with an independent insurance broker because these policies are more complex than simple Term 10 or Term 20 insurance products. Our experienced brokers have extensive experience in dealing with permanent life insurance policies, such as Term 100, whole life, and universal life insurance. Get a free insurance quote or connect today for a chat.

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