Term to 100 or “Term 100” refers to a type of life insurance that offers a term of 100 years. With this type of policy the premiums are paid to age 100, which, for the majority of policyholders, means their entire life. If you live past 100 you are no longer required to pay any more premiums. Also, these premiums are guaranteed never to increase but because they are payable for you entire life missing a payment can cause your policy to lapse.
Many insurance providers offer variations with this type of policy with some even offering a cash value. This cash value option will not be as extensive compared to whole life policies, which means that the return of premium is not available to the owner if they decide to cancel their policy prior to death.
Insurance providers have responded to those that are looking for the benefits of a term to 100 policy, but would like the added benefit of having a savings component. These types of policies, sometimes referred to as Universal Term 100, give you the option of building cash value that is not as restrictive as pure Term 100 policies. With a Universal Life Term 100 policy, the savings component can be helpful in paying premiums. Also, if an individual chooses not to use this accumulated cash value, it is added to the death benefit and paid out tax free.
As with all life insurance policies finding your best option is something that takes you discussing your needs with a professional insurance broker. LifeCover.ca helps thousands of Canadians connect with it’s large network of independent brokers every month.