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Term 100 Life Insurance in Canada

Term 100 Life Insurance in Canada
Term 100 Life Insurance in Canada

Term 100 life insurance, also known as permanent term life insurance, is a unique form of permanent life insurance designed to provide lifetime coverage with guaranteed premiums. This type of policy lasts for the entirety of the insured’s life, with level premiums paid until age 100. At age 100, premium payments stop, but coverage continues for life.

Term 100 policies provide permanent protection like whole life insurance, but at a lower cost since they lack cash value accumulation. Read on to learn everything you need to know about Term 100 life insurance in Canada.

What is Term 100 Life Insurance?

Term 100, or permanent term, life insurance is a permanent form of life insurance that combines features of both term and whole life insurance.

Like traditional term life insurance, Term 100 policies provide coverage for a specific period of time. However, that period is the lifetime of the insured. Premiums are paid for the term up until the policy anniversary following the insured’s 100th birthday. At this point, premium payments stop, but coverage continues for life.

Term 100 life insurance is considered a form of permanent life insurance because it lasts for your entire lifespan. However, unlike whole and universal life insurance policies that build cash value, Term 100 only pays out a death benefit and does not accrue any cash surrender value.

How Does Term 100 Life Insurance Work?

With Term 100 life insurance, you pay a fixed premium amount every year until you reach age 100. The premium is guaranteed not to increase.

The death benefit provided by the policy is paid to your named beneficiaries when you pass away. This lump sum payout is tax-free to the beneficiaries.

At age 100, you stop paying any premiums but retain coverage until you die. So you have lifetime protection for no additional premium cost beyond age 100.

Term 100 policies work similarly to term life insurance in that they lack cash value. You cannot borrow against the policy or cash it out. The only payout option is the tax-free death benefit.

This makes Term 100 a lower-cost form of permanent life insurance compared to whole life or universal life. It provides lifetime coverage with guaranteed, fixed premiums.

Types of Term 100 Life Insurance

Term 100 life insurance is available in different policy structures to suit your specific insurance needs. The main types of Term 100 insurance include:

Individual Term 100 Policies

This is coverage on a single insured individual. You choose the death benefit amount and premiums are payable until age 100 when coverage continues at no additional cost for life.

Individual Term 100 plans are used to protect your family or beneficiaries in the event of your death. The tax-free death benefit can replace lost income, pay off debts, and more.

Read more: Family Life Insurance

Joint First-to-Die Term 100

Also called joint last survivorship insurance, this type covers two insureds, usually spouses or partners. It pays out when the first insured passes away.

Premiums are based on the younger insured’s age and stop at the younger spouse’s 100th birthday. The surviving spouse maintains lifetime coverage without additional premiums.

Joint first-to-die Term 100 insurance is popular for estate planning. It provides liquidity to pay estate taxes or debts when the first spouse dies.

Read full review: What is Joint First-to-die Life Insurance ?

Joint Last-to-Die Term 100

This variation covers two insureds but doesn’t pay the death benefit until the second insured dies. Premiums continue until the 100th birthday of the younger insured, at which point coverage lasts for life.

Because payout occurs at the second death, joint last-to-die Term 100 insurance is useful for leaving a legacy to heirs or charities. The benefit amount can be used to pay estate taxes.

Read full review: What is Joint Last-to-Die Life Insurance?

Alternatives to Term 100 Life Insurance

While Term 100 policies offer lifetime coverage at guaranteed rates, there are other permanent and temporary life insurance options to consider as well:

Term Life Insurance

Regular term life insurance provides temporary coverage over a set period like 10, 15, 20, or 30 years. Premiums increase at each renewal. While cheaper initially, renewal rates become costly as you age.

Term life meets temporary needs like replacing income for dependents or covering a mortgage. But it lacks lifelong coverage. Check out these helpful articles to gain more insights into Term 10 Life Insurance, Term 15 Life Insurance, Term 20 Life InsuranceTerm 25 Life Insurance, Term 40 Life InsuranceTerm 30 Life Insurance, 35-Year Term Life Insurance, Term to Age 65 Life Insurance, etc. Discover the differences in policy lengths, costs, and best uses for coverage.

Permanent Life Insurance

Whole life and universal life insurance offers lifelong coverage and cash value accumulation. Premiums are flexible but not guaranteed. Permanent insurance is better for wealth transfer and estate planning but costs more than term.

Guaranteed Issue Life Insurance

For those with health issues, guaranteed issue life insurance offers simplified underwriting with no medical exam. However, benefit amounts are capped at $25,000, which may be insufficient. Premiums are high and lifelong.

Compared to these alternatives, Term 100 offers a nice middle ground. You get permanent coverage with guaranteed premiums and larger benefit options than guaranteed issue products.

How Does Term 100 Life Insurance Work in Canada?

How Does Term 100 Life Insurance Work?
How Does Term 100 Life Insurance Work?

Term 100 life insurance provides lifetime protection through a straightforward structure:

  • You select a death benefit amount based on income replacement needs or beneficiaries’ goals. This lump sum is paid tax-free to your named beneficiaries upon your death.
  • Annual or monthly premiums remain level and are guaranteed not to increase over the life of the policy.
  • Premiums are paid until the policy anniversary date following your 100th birthday. At this point, premium payments stop, but coverage continues.
  • No cash value accumulates. Term 100 only pays the death benefit, unlike permanent policies with investment components.
  • You can maintain coverage indefinitely as long as premiums are paid up to age 100. There is no need to re-qualify or renew your coverage.

The premiums you pay go towards the pure insurance component providing your coverage. Insurance companies price Term 100 premiums based on their expectation of when you will pass away. This allows them to profit by collecting premiums over their lifetime that likely exceed the actual death benefit they must pay out.

When Do You Need Term 100 Life Insurance?

Term 100 life insurance is appealing for several reasons but is especially useful in these situations:

You Need Lifelong Insurance Protection

For permanent insurance needs, Term 100 lasts your entire life. This ensures lifelong protection for dependents when you die, income replacement, and more. The premiums won’t increase or become prohibitively expensive as you age.

Estate Planning and Legacy Planning

The tax-free death benefit from Term 100 insurance can provide money to heirs for paying estate taxes or leaving a legacy gift to charity.

You Want Lower Cost Permanent Coverage

Term 100 costs less than whole life insurance since it lacks cash value. But it still provides permanent protection. This makes it more affordable lifelong coverage.

You Have Health Conditions

Since underwriting for Term 100 insurance occurs upfront, you can secure permanent coverage without worry of declined renewal or much higher re-evaluation premiums later if your health declines.

Pros and Cons of Term 100 Life Insurance

Term 100 life insurance has several advantages but also some potential limitations to consider:


  • Lifelong coverage: Term 100 lasts your whole life, unlike term policies that expire.
  • Guaranteed level premiums: Your premiums will never increase, providing certainty about future costs.
  • Lower cost: Term 100 is less expensive than whole life insurance since it doesn’t include cash value.
  • A good option for estate planning: The tax-free death benefit helps beneficiaries pay estate taxes.
  • No need to re-qualify: Once approved, you can maintain coverage regardless of health changes.


  • No cash value: Term 100 only pays a death benefit and does not build equity.
  • No return of premiums: If you cancel the policy, you don’t get any money back.
  • More expensive than term insurance: Term 100 costs more than shorter ten or 20-year term policies.
  • Requires underwriting: You must qualify based on age, health, and other factors. Higher-risk applicants may pay more or be denied.

Overall, Term 100 offers an appealing package with lifetime guaranteed coverage. However, the lack of cash accumulation makes it unsuitable for wealth transfer needs beyond just the death benefit.

Cost of Term 100 Life Insurance in Canada

Cost of Term 100 Life Insurance in Canada
life buzz quote in canada new 8 1
Cost of Term 100 Life Insurance in Canada

Term 100 life insurance usually costs more than regular term life insurance but less than permanent whole life insurance. Exact Term 100 rates depend on:

  • Age – The younger you are when applying, the lower your premiums. Rates increase each year as you age.
  • Gender – Women often get lower rates than men of the same age due to longer life expectancies.
  • Health – Good health results in better rates. Those with medical conditions (also called pre-existing conditions) pay higher premiums.
  • Lifestyle – Dangerous hobbies or high risk occupations also increase rates.
  • Face Amount – The higher the death benefit, the higher your premiums.

Overall, Term 100 life insurance costs range from $25 to $250 monthly for $250,000 of coverage for a healthy 30-year-old non-smoking male. Rates for a 30-year-old female range from $15 to $160 for the same coverage amount.

Exact premiums depend on the insurance company and their specific underwriting policies. Always shop rates from multiple providers to get your best deal.

Compare Term 100 Life Insurance Companies

When purchasing Term 100 insurance, you want to find an insurer with strong financial ratings, good customer service, and competitive rates. Some top choices include:

Sun Life Term 100 Insurance

  • Pros: Wide underwriting, strong ratings (A+ from A.M. Best)
  • Cons: Mixed reputation for claims handling
  • Sample Monthly Premiums:
    • 30-year-old male, $250K coverage: $37
    • 30-year-old female, $250K coverage: $27

Read full review: Sun Life Insurance Canada

Canada Life Term 100 Insurance

  • Pros: Flexible underwriting, multinational clients
  • Cons: Minimal online support
  • Sample Monthly Premiums:
    • 30-year-old male, $250K coverage: $40
    • 30-year-old female, $250K coverage: $30

Read full review: Canada Life Insurance

RBC Term 100 Insurance

  • Pros: Easy to manage online, good customer service
  • Cons: The application process can be lengthy
  • Sample Monthly Premiums:
    • 30-year-old male, $250K coverage: $39
    • 30-year-old female, $250K coverage: $29

Read full review: RBC Life Insurance

Always compare quotes from multiple insurers. An independent broker can provide quotes from a wide range of companies.

Who Needs Term 100 Life Insurance?

Term 100 life insurance is a suitable permanent protection solution for:

  • Young families – Parents with kids get lifelong coverage to provide for dependents if a parent dies. Term 100 rates are the lowest when applying early.
  • Single parents – Single moms or dads gain coverage for daily expenses and childcare costs if they unexpectedly pass away.
  • Self-employed – Entrepreneurs and small business owners who lack employer group benefits can get individual Term 100 insurance.
  • Older adults – Those in their 60s and 70s still needing permanent insurance can benefit from guaranteed premiums and no medical requalification.
  • Estate planning – Individuals with sizable estates get coverage to pay taxes and outstanding debts, so heirs receive a larger legacy amount.
  • Charitable giving – Term 100 proceeds enable making a large tax-free donation to a charity upon death.

Tips for Purchasing Term 100 Insurance

Tips for Purchasing Term 100 Insurance
Tips for Purchasing Term 100 Insurance

Follow these tips for getting the best rates and coverage with Term 100 life insurance:

  • Compare quotes from at least 3 to 5 different insurance providers to find your best option for rates and service.
  • Consider adding riders like a waiver of premium for disability or critical illness to enhance your base policy.
  • Apply early while young and healthy. Premiums increase each year as you age. Underwriting is also more lenient for younger applicants.
  • Work with a broker for access to a wide range of insurance companies and help choosing the right policy. Brokers have expertise about different Term 100 products.
  • Be thorough on your application to avoid any delays or investigations that slow the process. Disclosing all information upfront results in faster approval.
  • Pick an appropriate beneficiary like your spouse, child, or trust. You can change the beneficiary later if needed.
  • Review in-force illustrations so you understand how the guaranteed premiums work over the long term when budgeting.

How to Buy Term 100 Life Insurance

Purchasing Term 100 life insurance involves researching plans, comparing rates, and going through the application/underwriting process:

Getting Quotes for Term 100 Coverage

You can request Term 100 insurance quotes by:

  • Getting quotes online – Many insurers like Sunlife and RBC allow you to fill out a simple form online to get instant rate quotes.
  • Contacting insurers directly – You can call insurers’ sales lines directly to speak with an agent and receive quotes.
  • Working with an independent broker – Brokers like Life Buzz can provide quotes from a large number of life insurance companies in Canada through a single application process.

Quotes are not binding but give you an estimate of potential pricing. Formal Rate Quotations come after the underwriting process is complete.

Applying for Coverage

The application involves:

  • Completing the full application with background, lifestyle, medical history, and other details.
  • Setting your coverage amount based on income needs and goals for beneficiaries.
  • Selection of any riders, such as those with a waiver of premium, accidental death benefit, or critical illness.
  • Going through medical underwriting, including exams and submitting fluid samples.

Underwriting results will be included in your official rate quotation if approved. You can then choose to proceed with purchasing the policy.

Purchasing Your Policy

Finally, you will:

  • Pay your first premium via cheque, bank withdrawal, or credit card to activate coverage.
  • Designate primary and contingent beneficiaries.
  • Review your policy documents outlining all terms, rates, and provisions.
  • Submit delivery requirements proving your identity and insurable interest.

Then you have lifelong Term 100 coverage in force! Your beneficiaries will receive the tax-free death benefit when you pass away.

How to Make a Term 100 Life Insurance Claim

Making a Term 100 insurance claim involves:

  • Having your beneficiaries or executor contact the insurance company.
  • Completing initial claim forms and paperwork. Required documents include the death certificate, beneficiary designation forms, and possibly medical records.
  • For complex cases like death abroad, insurers may require further supporting documents and have a longer claim review process.
  • Once approved, the insurer issues payment of the tax-free death benefit to your designated beneficiaries. Payout is typically within two weeks for straightforward claims.

Your beneficiaries can use these lump-sum proceeds however they wish, like paying bills, covering funeral costs, or leaving an inheritance.


Term 100 life insurance provides permanent lifetime coverage to protect your loved ones. At the same time, it costs more than temporary term life insurance. Term 100 offers fixed, guaranteed premiums, and there is no need to re-qualify if your health changes later.

Term 100 lasts your entire life, ensuring your beneficiaries receive a tax-free death benefit no matter when you pass away. This income can provide long-term financial support and stability.

While lacking any cash value like whole life insurance, Term 100 meets the need for lifelong protection at an affordable cost. For permanent coverage with predictable premiums, Term 100 life insurance is an attractive option.

Review our complete guide and then request quotes from leading insurers to find the best Term 100 life insurance policy for your needs and budget. Protecting your family’s financial future is simple with help from the experts at Life Buzz.

Frequently Asked Questions (FAQs)

What is the minimum coverage amount for Term 100 life insurance?

Most insurers offer minimum death benefit amounts of $50,000 or $100,000 for Term 100 policies. Some may go as low as $25,000 for basic coverage needs.

What is the maximum coverage amount for Term 100 life insurance?

The maximum Term 100 coverage amount depends on the insurance company but can range from $1 million to $10 million or more, subject to underwriting approval. Most insurers will allow coverage into the multi-million dollar range.

At what age should I buy Term 100 life insurance?

The best age to buy Term 100 insurance is early on in adulthood, such as in your 20s or 30s. Premiums increase each year, so purchasing when young saves substantially on costs over the long run.

Can I convert my Term 100 policy to whole life or universal life insurance?

Most Term 100 policies do not allow conversion to permanent cash value policies like whole or universal life. A new application for permanent coverage would be required.

Are Term 100 premiums tax deductible in Canada?

No, Term 100 life insurance premiums are not tax deductible in Canada, unlike some permanent life insurance policies. The tax-free death benefit is the main tax advantage.

Does Term 100 life insurance build any cash value?

Term 100 policies do not build up cash value. The only payout is the tax-free death benefit. Lack of cash value makes Term 100 cheaper than whole life insurance.

Can I get a return of the premium rider with Term 100 insurance?

Some Term 100 policies may allow attaching a return of premium rider. This provides a partial refund of premiums paid if you cancel the coverage later on. Availability of this rider varies by insurer.

Is Term 100 renewable after age 100?

No, Term 100 coverage continues for life after premiums stop at age 100. There is no need to renew or re-qualify for coverage after age 100 once initially approved.

Does smoking affect Term 100 insurance rates?

Yes, smokers will pay higher premiums than non-smokers for Term 100 coverage. Declaring tobacco use increases your rates.

Can I convert my Term 100 policy if I quit smoking?

Yes, most insurers will convert you to non-smoker rates on a Term 100 policy if you quit smoking for at least 12 months and provide evidence like a cotinine test.

Does Term 100 insurance require a medical exam?

In most cases, you will need to take a medical exam and provide fluid samples during the Term 100 insurance application process. Requirements depend on age and benefit amount.

What conditions make you ineligible for Term 100 insurance?

Serious conditions like cancer, heart disease, and HIV can make you ineligible for Term 100 insurance. Other factors, like dangerous hobbies, may also result in a decline.

Can I get Term 100 life insurance with a pre-existing health condition?

You may qualify for Term 100 with some minor health conditions. With serious pre-existing conditions, you often cannot get Term 100 but may qualify for guaranteed issue life insurance instead.

What if I develop a health condition after buying Term 100 insurance?

The benefit of Term 100 insurance is that once approved, you maintain the same rates and coverage regardless of new health conditions that develop later on.

Can I adjust the amount of my Term 100 policy after purchase?

Most Term 100 insurers allow you to decrease or increase your coverage after your initial purchase. Increases require full medical underwriting again.

What is the suicide clause for Term 100 life insurance?

If death occurs by suicide within two years of the policy effective date, the Term 100 insurer will not pay the death benefit. The standard suicide clause is two years across the industry.

When do Term 100 insurance benefits get paid out to beneficiaries?

Term 100 provides a tax-free lump sum death benefit whenever the insured passes away, no matter the cause, with the exception of the suicide clause time period.

Can I adjust my Term 100 insurance beneficiaries?

The beneficiaries can be changed at any time by submitting a new beneficiary designation form to the insurance company. Beneficiaries are not set permanently at the time of purchase.

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Written by Ben Nguyen

Ben Nguyen is an award-winning insurance expert and industry veteran with over 20 years of experience. He is the chairman and director of IDC Insurance Direct Canada Inc., one of Canada's leading online insurance brokerages.

Ben is renowned for his extensive knowledge of life, health, disability, and travel insurance products. He is the prolific author of over 1,000 educational articles published on LifeBuzz, BestInsuranceOnline, and InsuranceDirectCanada. His articles provide Canadians with advice on making smart insurance decisions.

With a Bachelor's degree in Actuarial Science and a Fellow of the Canadian Institute of Actuaries (FCIA) designation, Ben is frequently interviewed by media as an insurance industry spokesperson.

He has received numerous honors including the Insurance Council of Canada’s Pivotal Leadership Award, the Canadian Insurance Hall of Fame induction, and the President’s Medal from the Canadian Institute of Actuaries.

Ben continues to shape the vision and strategy of IDC Insurance Direct as chairman. He is dedicated to advancing the insurance industry through his insightful leadership.

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