We know that choosing life insurance can feel overwhelming. That’s why we’re here to make it simple! Let’s break it down into two main categories: term and permanent.
Each type has its own benefits, so it’s all about finding the one that fits your life and budget. The chart below will help you compare. Still have questions? No worries! Our team is happy to chat and help you figure out the best option for your family.
What you need to know
| Policy Type | Whole Life | Universal Life | Term 100 | Term |
| Period of Coverage | Life | Life | To age 100 | Stated in the contract (eg 5, 10, 20 years) Often renewable for additional terms but expires at age 80. |
| Premium | Guaranteed. Usually remain level. | Flexible. Can be increased or decreased by policyholders within certain limits. | Guaranteed. Usually remain level. | Guaranteed and remain level for term of policy, Increase with each new term. |
| Death Benefits | Guaranteed Remain level. Dividends can enhance death benefits in participating policies | Flexible. May increase or decrease according to fluctuations in cash value fund. | Guaranteed. Remain level. | Guaranteed in contract. |
| Cash Values | Guaranteed in contract. | Flexible. May increase or decrease according to investment returns and level of policyholder deposits. | Usually none. (Some policies have a small cash value or other non-forfeiture value after a long period, say, 20years.) | Usually none. (Some long-term policies have a small cash value or other non-forfeiture value.) |
| Non-forfeiture Options | Guaranteed in contract. | Guaranteed in contract. | See above. | See above. |
| Dividends | Payable on “participating” policies. Not guaranteed | Most policies are “non-participating” and do not pay dividends. | Most policies are “non-participating” and do not pay dividends | Most policies are “non-participating” and do not pay dividends |
(source: Canadian Life and Health Insurance Association 2016)
The perks of permanent life insurance
Permanent life insurance offers some great benefits to help you protect your family and reach your financial goals:
- Lifetime protection: Your loved ones are covered, no matter when you pass away.
- Predictable premiums: Your monthly payments usually stay the same.
- Cash value grows: Think of it like a built-in savings account that can grow over time.
- Flexibility: You can access that cash value or use it to pay future premiums if needed.
- Potential for dividends: Some policies share the insurance company’s profits with you through dividends.
Things to consider with permanent life insurance
- It might be more expensive than you need for a short-term goal.
- If you only need coverage for a few years, term might be a better fit.
- It takes time to build up cash value – you won’t see big returns right away.
Why choose Term to 100 life insurance?
- Lifetime coverage: Stay protected until you turn 100.
- Predictable premiums: Your monthly payments stay the same, no matter what.
- Affordable: It’s a budget-friendly option for lifetime protection.
What to keep in mind with Term to 100
- Unlike some other types of permanent insurance, Term to 100 usually doesn’t build cash value or offer extra features.
The perks of term life insurance
Term life insurance is a great option for many people, offering:
- Affordable protection: Perfect for budgets of all sizes, especially if you’re younger.
- Focus on specific needs: Ideal for covering a mortgage, protecting your family while your kids are young, or meeting other short-term goals.
- Flexibility: You can switch to a permanent policy later on, even if your health changes.
- Peace of mind: Know your loved ones are taken care of, without breaking the bank.
What to consider with term life insurance
While term life insurance is a great option for many, it’s important to be aware of these points:
- Premiums can increase: If you renew your policy, your monthly payments might go up as you get older.
- Coverage expires at age 80: It’s not a lifelong solution.
- No cash value: Unlike some other types of insurance, term policies don’t build up savings over time.
- Missed payments matter: If you miss a payment, your coverage could end.