Term 100 - Permanent Life Insurance Vancouver, BC
This is a very confusing and misleading name for what is actually a very simple policy. The policy is almost always permanent and does NOT expire at age 100. The 100 rather means that if the insured lives beyond age 100, premiums may no longer be required, but on death the policy will still pay out. The insured simply pays into the policy until they pass away at which point the death benefit pays out. Premiums never increase and coverage never expires. Term 100 is the simplest and cheapest form of permanent life insurance.
Term 100 is generally only a good option for people age 60+ for several reasons:
- the death benefit does not increase and is eroded by inflation
- you have to pay until you die which means that if in old age you cannot pay the policy may lapse worthless; for example if someone enters a retirement home and has little or no income
- the return on investment (ROI) at life expectancy is very low at about 2%
For these reasons, unless you are senior looking for simple, minimal final expense coverage, term 100 is usually not the best fit. Whole life and universal life are both usually more attractive.
Insurance Solutions we offer include: Life Insurance | Term Life Insurance | Creditor (Mortgage) Insurance | Life Insurance for New Immigrants | Non-medical Life Insurance | Manulife Vitality | Permanent Life Insurance | Term 100 - Permanent Life Insurance | Universal Life Insurance | Whole Life Insurance | Medical Underwriting | Living Benefits Insurance | Critical Illness Insurance | Disability Insurance | Life Insurance For Business Owners | Corporately Owned Life Insurance
Who needs life insurance?
Ask yourself this question: Would anyone you care about suffer financially in the event of your premature death? If you have dependant children, the answer is yes. If you have a spouse, the answer is probably.
Who does not need life insurance?
If you are single you probably do not need life insurance. Usually the death of a single/childless person does not leave anyone worse off financially. A single person with a mortgage may still NOT need life insurance as their family would still inherit equity in their property. Single people need to prioritize critical illness and disability insurance.
How much life insurance do I need?
The primary purpose of life insurance is to pay off debts (especially a mortgage) and replace income for dependants of the deceased. We do a needs analysis to determine how much money your family would need to maintain their standard of living in the event of your premature demise. A commonly used guideline for someone in their 30s is 20 times after-tax annual earnings.