Term 100 Life Insurance in Canada

With a Term 100 policy, your premiums are guaranteed to stay the same throughout the life of the policy. This means you'll never face unpredictable rate increases as you get older. A unique feature is that you typically stop paying premiums once you reach age 100, but your coverage continues for the rest of your life.

Upon your passing, the policy provides a tax-free death benefit to your named beneficiaries or your estate. This benefit can be used to help your family manage future expenses, pay off debts, cover final expenses, or ensure assets you leave behind (like a cottage) aren't burdened by taxes.

Term 100 stands out by offering the lifelong coverage benefit of permanent insurance with the guaranteed level premiums, but without a cash value component if surrendered. The premium you pay is solely for the insurance coverage itself. This can make it a simpler and potentially more cost-effective permanent option for estate tax, charity giving or assured money (wealth) for the next generation if building savings within the policy isn't a priority.

Term 100 life insurance is a great fit for individuals and families who:

• Prefer Lifetime Coverage: You want the assurance that your policy will never expire, providing protection for your entire life.

• Desire Predictable Costs: You value guaranteed level premiums that won't increase over time, simplifying long-term financial planning.

• Need Simple Permanent Protection: You're looking for permanent coverage that is simpler and potentially less costly than other permanent options like Universal Life or Whole Life, especially if accumulating cash value isn't your primary goal.

• Are Planning Their Estate: It can be used to ensure loved ones have funds to cover potential taxes on assets left to them, protecting your legacy.

• Have Lifelong Dependents: You want to ensure the financial well-being of dependents who may require support indefinitely.

Term 100 policies are typically available for individuals between the ages of 18 and 85 (Note: specific age eligibility may vary by insurer).

Understanding how Term 100 fits into the broader landscape of life insurance can help you make an informed choice.

• Term Life Insurance: Covers you for a specific period (e.g., 10, 20, or 30 years). It's often the most affordable option initially, but premiums increase upon renewal, and coverage eventually ends.

• Permanent Life Insurance (Whole Life & Universal Life): Like Term 100, these policies offer lifetime coverage, which means coverage never ends and the beneficiaries are assured of the tax free money. However, unlike Term 100, Whole Life and Universal Life policies typically combine lifelong insurance with a savings component (cash value or accumulation value) that can grow over time. This cash value can be an effective tool to tax planning and can accessed during your lifetime for various purposes including retirement planning. Because they include this savings component, Whole Life and Universal Life policies are generally more complex and have higher premiums than Term 100.

Yes, many Term 100 products offer options for covering multiple lives on a single policy. Common arrangements include Joint First-to-Die (covering 2 to 5 lives) and Joint Last-to-Die (typically covering 2 lives). Some policies also allow for multiple insured lives with individual coverages under the same policy.

Importance of Joint Coverage Options: This is a key consideration for couples wanting to protect the surviving member, families wanting to plan for estate taxes, or business partners seeking shared coverage.

Yes, a key feature of Term 100 products across the listed providers is the guarantee of level premiums until the insured reaches age 100. This means the premium amount will not change for the duration of the policy, providing predictability in cost.

The minimum sum insured for Term 100 policies also varies by provider. The lowest minimum amount range from $10,000 to $50,000.

The method for calculating issue age for Term 100 policies is primarily based on the insured's nearest birthday or age nearest. Several companies use the nearest birthday method. Others use "Age Nearest". This difference in calculation method can slightly impact the premium amount depending on the individual's birth date relative to the policy application date.

Yes, most Term 100 policies have associated administration or policy fees. These fees can be charged annually or monthly and vary in amount. Some providers have different fee structures for individual and joint policies.

The issue age limits for Term 100 policies vary across different insurance companies. The range generally falls between age 0 and age 85, with many providers offering coverage from age 0 or 18 up to age 75 or 80. There are instances of higher limits which offer issue ages up to 85.

The availability of preferred rates varies significantly among the companies. Some companies explicitly state "No" for preferred rates. However few do offer preferred rates, often with specific age and amount limits.