Term to 100 life insurance is a distinct form of permanent life insurance policy which is solely a Canadian product. The convenience of this type of policy is its simplicity and low cost which makes it very affordable for people who need coverage but can’t afford the more expensive form of permanent insurance. The other forms of permanent insurance include the Whole Life and Permanent life insurance policies.
Another advantage of the Term to 100 life insurance policy is that once you purchase this policy your premiums never change during the life of this policy. The premiums are fixed so the cost never rises regardless of your state of health.
As you might guess, the term of the policy was intended to last until you reach your 100th birthday, but the coverage actually extends beyond your centennial. Once you pass your 100th birthday, you no longer have to pay any more premiums, but you are still covered.
This policy is very convenient in that you get to pick the amount of death benefit you want which is very handy. If your goal is to create an estate and financial cushion for your beneficiary and family, or if you simply want to cover your funeral expenses and associated costs, then this is a very appealing type of life insurance policy.
Like all other forms of permanent insurance policies, the lump sum cash settlement paid out to your beneficiary is tax free so they are free to spend it however they choose without having worry about Revenue Canada knocking on their door.
Unlike the other forms of Permanent insurance, there are no investment features so there is no cash surrender values or any other benefits at the end of the policy. You also do not receive any financial benefits should you choose to cancel your policy.
Because of the simplistic and basic nature of the Term to 100 Policy, the premiums are much cheaper than either the Whole Life or Universal life insurance policies. This form of policy is very cheap for those on a budget or for people who are older such as in their fifties. An additional feature is that the policy is automatically renewed each year so long as you continue to maintain your premiums.
If you are presently carrying a Term Life insurance policy which only covers you up to a certain period of time, many life insurance companies also offer the option of changing it over to a Term to 100 policy for added convenience.
Also, many companies give the option of adding term insurance riders. If you think that the death benefit you’ve chosen is inadequate, you can simply add additional insurance term insurance to cover your needs for a specific period of time instead of having to change your original policy. You may also have the option to attach a tern policy rider to other members of your family such as your children. As the your children get older, they in turn may the option to convert this term rider into a more beneficial Permanent Life Insurance Policy.
The cheap cost and simple convenience of this policy makes this form of permanent life insurance very attractive.