You should consider buying life insurance if you have a family, loved ones, or dependents who depend on your income for their daily living expenses.
Life insurance gives you peace of mind knowing that the loved ones you leave behind when you die will be financially protected by a non-taxable death benefit payout. The death benefit can help your loved ones maintain their quality lifestyle, pay for everyday living expenses and debts, and cover your end-of-life expenses.
However, if you are looking for a policy that offers more extended coverage than term life insurance but with more affordable premiums than whole life insurance, term to 100 life insurance could be your best option.
So, what’s unique about this term to 100 life insurance? This blog post will discuss what the term to 100 life insurance is, how it works, its pros and cons, and why you should consider buying it.
What is Term To 100 Life Insurance?
Term to 100 life insurance is a type of permanent life insurance that combines the features of term and whole life insurance. It is affordable and offers lifelong coverage.
Term to 100 life insurance offers coverage without an end date. The ‘100’ refers to its attachment to your 100th birthday. The insurance company provides coverage throughout your lifetime, but the premiums remain the same till your 100th birthday.
When you turn 100 years old, your coverage continues, but you stop paying premiums. In addition, it offers guaranteed premiums and death benefits. The premiums and death benefits stay the same throughout your lifetime.
How Does Term To 100 Life Insurance Work?
Like whole life insurance, term to 100 life insurance covers you for the entirety of your life. However, like term life insurance, the policy does not have a cash value component. It does not accumulate any cash value as you pay your premiums.
Also, there are no cash-out options or dividend payments with term to 100 life insurance. The policy only pays out when you die. It offers coverage options from as little as $25,000 up to millions of dollars.
Some insurance companies allow you to buy various riders for your policy to help customize the policy to your specific needs. Some popular riders include critical illness riders, accidental death benefit riders, and accelerated death benefit riders. Most times, you have to pay additional money for the riders.
So, in the occurrence of these events, you will be eligible to receive a small compensation payout from your death benefit, or your insurer can grant you access to a portion of your death benefit.
How Much Does Term To 100 Life Insurance Cost in Canada?
Term to 100 life insurance policies is more affordable than whole life insurance and other types of permanent life insurance. The cost of a term to 100 life insurance policy will depend on the insurance company and its guiding principles.
Generally, the costs of the term to 100 life insurance coverage depend on several factors, like age, health status, lifestyle choices, gender, family medical history, occupation, and hobbies.
You will likely undergo a medical exam to prove your insurability. Taking out a no-medical life insurance plan costs a lot of premiums, which is why buying life insurance at an early age is advisable while you are still young and healthy.
However, to determine how much term to 100 life insurance coverage you would need, you must consider the lifestyle you want your beneficiaries to continue after your death. Consider your accumulated debts and how much premiums you can afford monthly or yearly while alive.
Benefits And Downsides of Term To 100 Life Insurance
Like every other type of life insurance, term to 100 life insurance has its benefits and downsides. Depending on what you are looking for, you should consider each side of the policy and determine whether it is suitable for you.
- Lower premiums: In contrast to other types of permanent life insurance, term to 100 life insurance is cheap and affordable. Its premiums are more inexpensive. This is because the term to 100 life insurance does not have a cash value feature like other types of permanent life insurance.
- Consistent premiums: Term to 100 life insurance offers guaranteed and consistent premiums. They never change. Term life insurance offers level premiums till your policy expires. When you renew your policy, your premiums increase. However, term to 100 life insurance premiums does not increase but remain the same till you stop paying premiums.
- You stop paying premiums, but your coverage continues: Term to 100 life insurance covers you for your lifetime. When you reach age 100, you stop paying premiums, but your coverage continues throughout your lifetime.
- Level death benefits: The insurance company cannot increase or decrease your death benefit. Term to 100 life insurance offers you a predetermined death benefit, and the exact death benefit is paid to your beneficiary upon your death.
- More expensive than term life insurance: Term life insurance offers more affordable premiums than a term to 100 life insurance. If you need a cheap and affordable policy, consider term life insurance.
- No cash value: Term to 100 life insurance is not a good option if you are looking for an insurance policy to use an investment vehicle. This is because the term to 100 life insurance does not have a cash value feature. Also, since there is no cash value, if you cancel your policy, you won’t get any premiums back because there is no cash surrender value.
- No dividend options: Term to 100 life insurance does not allow policyholders to partake in the earnings of the insurance company. If you want to receive dividends from your insurance policy, you should consider participating whole life insurance policy.
Should You Buy Term To 100 Life Insurance? Is It Worth It?
If you want to buy a permanent life insurance policy that offers level and affordable premiums all through your lifetime, term to 100 life insurance is the perfect option.
Term to 100 life insurance offers you the same premiums over time and gives you peace of mind knowing that your premiums won’t increase as you age. It saves you from worrying about the investment options of your insurance policy.
In addition, your premium payments stop at age 100. You celebrate your centenarian birthday and mark the end of your premiums, but not your coverage.
However, if you don’t make multiple premium payments or cancel your policy, you risk forfeiting all your premiums. You won’t get any payout, and all the years you have put into the insurance policy would be wasted.
Related: How Much Life Insurance Do I Need?
Final Thoughts on Term To 100 Life Insurance
If you need permanent life insurance but cannot afford the premiums of whole life insurance, term to 100 life insurance would be a perfect fit.
It will offer you lifelong protection without the added cash value component but at an affordable price. You will get consistent, guaranteed premiums, which will stop at age 100, but your coverage will continue throughout your lifetime.
If you have any questions or concerns about whether term to 100 life insurance is a good choice, speak to an expert insurance advisor. They can help you find insurance companies to buy insurance policies that offer maximum coverage at affordable rates.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
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