What Is Term-100 Life Insurance? (And Who It's For)
Term 100 life insurance explained: level premiums to age 100, no cash value, cheaper than whole life. When it beats term and whole life for Ontario families.
Term-100 life insurance is permanent coverage that works like a very long term policy: you pay a level premium until age 100, the death benefit is guaranteed for life, and there is no cash value. That last point is why it usually costs noticeably less than whole life for the same face amount.
It is the right tool when your need for insurance will never expire but you do not want to pay extra for a savings component. Think final expenses, estate taxes, a lifelong dependant, or a guaranteed inheritance.
This guide is for Ontario readers who have realized that regular term will eventually run out, have looked at whole life premiums and winced, and are wondering whether there is something in between. There is, and it is often overlooked.
Term 100 life insurance, defined
Despite the name, Term-100 is a permanent policy. Canadian insurers call it “term” because it is priced and structured like term insurance: a fixed premium for a fixed period, with no investment component. The period just happens to run to age 100.
The core features from most Canadian insurers:
- Level premiums that never increase, guaranteed in the contract.
- A guaranteed death benefit paid tax-free to your named beneficiary whenever you die, at 62 or at 96.
- Premiums stop at age 100 with most policies, and coverage continues for life at no further cost. A few contracts instead pay the face amount at 100; read the wording.
- No cash value. If you cancel, you generally receive nothing back.
- No dividends and no participation in the insurer’s investment results.
Because the insurer will almost certainly pay a claim on every Term-100 policy that stays in force, the premium is much higher than a 20-year term. But because there is nothing being set aside as savings, it sits well below whole life. If you want to understand what that savings component actually does, our explainer on whole life cash value covers it.
Term-100 vs. whole life vs. term: what changes
| Feature | Regular term (10–30 yr) | Term-100 | Whole life |
|---|---|---|---|
| Coverage length | Set term, then renews at higher rates | Life | Life |
| Premiums | Level for the term | Level to age 100, then usually paid up | Level for life or a set pay period (10, 20 years) |
| Death benefit | Guaranteed | Guaranteed | Guaranteed (plus dividends on participating policies) |
| Cash value | None | None | Builds over time |
| Cost for same face amount | Lowest | Middle | Highest |
| Value if cancelled | None | Usually none | Cash surrender value |
| Best for | Mortgage, income, kids | Permanent needs at the lowest permanent cost | Permanent needs plus tax-advantaged savings |
The simple way to hold this in your head: term is for needs that end, Term-100 is for needs that last, and whole life is for needs that last plus a desire to build cash value inside the policy. For the fuller comparison of the first and third columns, see term vs. whole life.
What Term-100 costs (indicative ranges)
Rates depend on your age, health, smoking status and insurer, and they change over time. For a healthy non-smoker buying $100,000 of Term-100, indicative monthly premiums are roughly:
| Age at purchase | Indicative monthly premium (illustrative only) |
|---|---|
| 40 | roughly $60–$95 |
| 50 | roughly $90–$150 |
| 60 | roughly $150–$260 |
For comparison, the same $100,000 in a participating whole life policy would generally run higher, sometimes considerably higher depending on the payment period, while a 20-year term at age 40 would cost a small fraction of the Term-100 figure. These are patterns, not quotes; your rate could land outside these ranges.
Buying earlier locks in a lower premium for life. A Term-100 bought at 40 will cost far less per year than the same coverage bought at 60, and since the premium never changes, the savings compound over decades. Our life insurance cost guide has more on what drives pricing.
Who Term-100 is for
Term-100 suits people with a need that does not have an end date. The common ones we see in Ottawa:
Final expenses
A funeral, burial or cremation, and the loose ends of settling an estate can add up to a meaningful sum. A modest Term-100 policy of $25,000 to $50,000 guarantees the money is there, tax-free, without your family dipping into savings at the worst possible moment. If your health rules out a fully underwritten policy, our guide to final expense insurance in Canada covers simplified and guaranteed issue options.
Estate and capital gains taxes
In Canada there is generally a deemed disposition of your capital property at death. A family cottage, a rental property, a business, or a large non-registered portfolio can trigger a significant capital gains tax bill, and registered accounts like RRSPs and RRIFs are generally taxed as income on the final return unless rolled to a spouse. Term-100 is a cost-efficient way to provide the estate with cash to pay that bill so the cottage does not have to be sold. Confirm the numbers with your accountant; every estate is different.
A dependant with special needs
If you have a child or adult dependant who will rely on you for life, a permanent policy funding a Henson trust or similar arrangement can provide for them after you are gone, generally without disrupting ODSP eligibility when structured correctly by a lawyer familiar with Ontario disability planning.
A guaranteed inheritance or charitable gift
Some people simply want to leave a set amount to their children, grandchildren or a charity, regardless of what the markets do or how long retirement lasts. Term-100 delivers that certainty at the lowest permanent cost.
Equalizing an estate
If one child will inherit the family business or farm, a Term-100 policy can leave an equivalent amount to the other children so the estate is fair without breaking up the asset.
Business needs that last
Funding a buy-sell agreement or key-person coverage where the need continues until retirement or death, rather than for a fixed loan term.
Who should skip Term-100
Term-100 is the wrong product if your need ends. Covering a 25-year mortgage or replacing income while the kids grow up is a job for regular term life insurance at a fraction of the cost. Our guide on 10 vs. 20 vs. 30 year term walks through matching the term to the obligation.
It is also the wrong product if what you actually want is tax-advantaged savings, access to cash during your lifetime, or dividends. Those are whole life features, and if you value them, whole life insurance is worth its higher premium.
And it is risky if the premium is a stretch. Because there is no cash value, cancelling a Term-100 in year twelve because money got tight means walking away with nothing. Buy an amount you can comfortably carry for decades, even in a bad year.
Term-100 vs. whole life: how to choose
This is where most people get stuck. Both are permanent, both guarantee the death benefit. The difference is what you are paying for.
Choose Term-100 if:
- You want the death benefit and nothing else.
- You already save through RRSPs, TFSAs and other investments and do not need another tax-sheltered vehicle.
- You want the lowest guaranteed premium for permanent coverage.
- You are older and whole life premiums have become impractical.
Choose whole life if:
- You have maxed your registered accounts and want additional tax-advantaged growth.
- You want the option to borrow against or withdraw cash value later.
- You value the flexibility of a policy that has a surrender value if plans change.
- You want a participating policy where dividends can grow the death benefit over time.
Many families land on a combination: a large term policy for the mortgage years and a smaller Term-100 for the permanent need. That layered approach delivers guaranteed lifelong coverage without the cost of insuring everything permanently.
Two details to check in the contract
- What happens at 100. Most policies become paid-up. Some pay out the face value. Either can be fine, but you should know which you are buying.
- Conversion from term. If you already own a term policy, most Canadian insurers let you convert part or all of it to a permanent plan, sometimes including Term-100, without a new medical exam, up to a set age. If your health has changed since you bought the term, this may be the cheapest route to permanent coverage.
How Hayes can help
Not every insurer offers Term-100, and among those that do, pricing varies more than you might expect, especially at older ages. As an independent Ontario brokerage, we compare 30+ Canadian insurers and can show you Term-100, whole life and regular term side by side for your age and health, so you can see what you would actually be paying for.
Want to see your numbers? Request a free quote in about two minutes, no obligation. Or contact us and one of our licensed advisors will talk through whether Term-100 fits your estate and family plans.
Frequently asked questions
What happens to Term-100 life insurance when you turn 100?
With most Canadian Term-100 policies, premiums stop at age 100 and the coverage continues for the rest of your life with no further payments. The death benefit is paid to your beneficiaries whenever you pass away. Check the specific contract, as a few policies pay out the face amount at 100 instead.
Is Term-100 cheaper than whole life insurance?
Generally, yes. Term-100 provides the same guaranteed lifetime death benefit as whole life but without cash value or dividends, so the premium is lower for the same face amount. The gap varies by age and insurer, which is why it pays to compare both side by side.
Does Term-100 build cash value?
No. Term-100 is pure protection with no savings component. If you cancel the policy you typically receive nothing back, unlike whole life which has a cash surrender value. Some insurers offer a reduced paid-up option after a number of years, but that is not the same as cash value.
Who should buy Term-100 instead of term life?
Anyone whose need will not expire: covering funeral costs, paying estate or capital gains taxes on a cottage or investments, supporting a dependant with a disability, or leaving a guaranteed legacy. If your need ends when the mortgage is paid or the kids are grown, regular term life is much cheaper and the better fit.