What is term 100 life insurance? Is it right for you?

This post was originally published on May 21, 2020, and was updated on February 7, 2024.

With many different types of life insurance plans out there, choosing the right one can be difficult. Purchasing life insurance shouldn’t be daunting, after all, it’s a great way to ensure that your loved ones are protected in the future. 

But why invest in term to 100 life insurance (or T100 insurance) specifically? First, we should compare it to regular term insurance and whole life insurance to get a better idea of what this plan is all about. 

What is term 100 life insurance? 

Term 100 life insurance is long-term coverage for anyone between the ages of 18 and 85. It’s similar to permanent life insurance policies because it lasts for the entirety of your life, but like term life insurance policies, no cash value is accumulated over the duration of this plan. 

What term to 100 life insurance gets you

One unique aspect of T100 is that once you reach your 100th birthday, you can enjoy continued coverage with no more premiums. 

With regular term life insurance once your premium payments cease, so does your coverage. On the other hand, with whole life insurance, you can either pay the policy amount in full (also known as a “paid-up policy” or not having to make any further payments) or if you wish to end the coverage, you may be able to cash out if any money that has accumulated in the plan. The cash surrender value is a pittance of the death benefit. 

Much like term insurance, T100 premiums are cheaper than whole life plans and don’t fluctuate through the course of the plan – which means you can rest easy knowing the premiums you pay today will remain the same throughout the duration of your policy. 

A key differentiator between T100 and term life insurance is the policy length. While term life insurance policies are shorter and usually span anywhere from 5 to 30 years, T100 insurance, as well as whole life insurance, lasts your entire life.

The death benefit is also flexible and the amount is up to you. Depending on your provider, coverage can start for as little as tens of thousands of dollars up to millions of dollars. 

T100 rates and costs are specific to providers, which is why you should compare life insurance quotes before deciding.

Term 100 life insurance rates vs. whole life and term life

To compare the cost of term 100 life insurance with conventional whole life and term life policies, below is a table outlining rates for a hypothetical policyholder – a 30-year-old, non-smoking female in good health, seeking $500,000 in coverage. Again, keep in mind that this will differ depending on the provider you choose (and of course, your individual profile), so be sure to compare life insurance rates for yourself.

The pros and cons of term 100 life insurance

When it comes to life insurance, there is no one-size-fits-all solution. Everyone has different coverage needs, so make sure you do your research ahead of time to choose the best option for your case. Here are some pros and cons of a term 100 life insurance plan:

Pros of term to 100 life insurance:

• It’s cheaper than whole and universal life insurance
• It doesn’t run out like a term insurance plan
• Premiums remain steady throughout the entire plan
• It's free after age 100
• There are no penalties to cancel
• It's a great choice for estate planning (e.g. you want to ensure your loved ones have money to pay taxes on assets you leave to them)

Cons of term to 100 life insurance:

• It costs more than term life insurance
• It can lack flexibility when compared to whole and universal life insurance
• There is typically no cash value component (and no dividends paid out)
• There is typically also no cash surrender value (if you cancel the policy, you won't receive any funds)

With term to 100 life insurance, you can walk away with no obligation for future payments, and your coverage will simply cease. The buyers of T100 plans, however, likely want to hold the plan since its use is likely to help cover the costs associated with estate costs.

To maximize the benefits of this plan, you need to stick with it in the long term. In the event of your passing, there is a simplified system in place that allows any listed beneficiaries to receive their respective benefits with low to zero tax applicable. 

Why is term 100 cheaper than whole life insurance?

While term 100 insurance and whole life insurance are both permanent plans, term 100 insurance is the more affordable option. This is because there is no cash value component – while traditional whole life plans have a fund you can borrow or withdraw from during your lifetime, you typically can't do this with T100 plans.

Also, if you stop paying the premiums on a term 100 plan, you'll lose the death benefit, plus all the money you've paid into it. With whole life insurance, you can access the cash surrender value – which is a lump sum payment you receive in the event of a policy cancellation.

How can I get term to 100 life insurance? 

With so many life insurance companies that offer this plan, it can be hard to know which one is the best match for your needs. 

When choosing a provider, there will be some key things to look out for. First, you must see if you qualify for the plan and if there are any age restrictions in place. For instance, TD Insurance offers T100 plans to those between ages 18 and up to 6 months after you turn 70 whereas RBC Insurance is open to those between 18 and 85. 

Also, pay attention to the maximum and minimum amounts required to purchase a plan. Some providers have higher minimums than others; for instance, RBC’s term 100 life insurance minimum coverage is $50,000. 

This also applies to maximums; while RBC Insurance insures up to $25,000,000, TD Insurance will cover you up to $10,000,000. 

The bottom line

If choosing a term to 100 life insurance plan seems right for you, you can compare life insurance rates with us – a life insurance broker will help you pick which life insurance company matches your needs best.

Also read

• Why aren't more Gen Z and Millennials buying life insurance?
• Do you need life insurance under 35?
• Should I buy term life or whole life insurance?