Term 100 vs whole life insurance: which lifelong cover fits you
Both can last your whole life. Term 100 is usually the cheaper death benefit with no cash value. Whole life costs more and builds cash value.
When a family needs life insurance that will still be there at 85 or 95, the choice usually comes down to Term 100 or whole life. The death benefit can be the same. What you get for the extra premium on whole life is cash value, shorter payment options and, on participating plans, dividends. Here is how they compare, with 2026 sample rates.
In short
Term 100 covers you for life with a level premium paid to age 100 and usually no cash value. Whole life also lasts for life but commonly builds guaranteed cash values, can be paid off in 10 or 20 years or by 65, and may pay dividends. In our October 2026 sample, the lowest Term 100 for $500,000 at age 40 was $367.83 a month for a non-smoking man and $318.67 for a woman. Choose Term 100 for the cheapest lifelong death benefit; choose whole life if you also want cash value.
What Term 100 is
Term 100 is lifelong life insurance with a level premium paid to age 100. Despite the name, it behaves more like permanent insurance than like a 20-year term: the death benefit is there whenever you die, as long as premiums are paid.
What it usually leaves out is cash value. BMO, Empire Life (Solution 100) and Desjardins all describe their Term 100 plans as lifelong level premiums without cash value. BMO issues its Term 100 at ages 0 to 80. Wawanesa's Term to 100 covers you for life with coverage paid up at 100.
In the LifeGuide quotes used below, the premium-paying period (PPP) is 70 years at age 30, 60 years at 40 and 50 years at 50. All three end at 100.
Calling Term 100 "whole life" is wrong unless the contract is actually a whole life policy. The two can be priced close together and still work very differently.
What whole life is
The Financial Consumer Agency of Canada describes whole life as permanent insurance that covers you for your entire life, with level premiums and often a guaranteed minimum cash value you can access while alive.
Whole life comes with more payment choices. BMO's whole life can be paid over 10 years, 20 years or to 100. Equitable's participating Equimax can be paid for life, 20 years or 10 years. Participating plans pay dividends, which are not guaranteed, and can buy paid-up additions that raise the death benefit.
See whole life payment options, 10-pay, 20-pay and pay to 65.
Term 100 cost in Canada: 2026 sample rates
Lowest visible monthly base premiums in an October 2026 LifeGuide survey, regular non-smoker, waiver riders excluded.
| Age | Coverage | Male | Lowest insurer | Female | Lowest insurer |
|---|---|---|---|---|---|
| 30 | $250,000 | $125.33 | BMO | $110.93 | Empire Life |
| 30 | $500,000 | $235.75 | BMO | $206.55 | Empire Life |
| 30 | $1,000,000 | $457.83 | BMO | $397.35 | Humania |
| 40 | $250,000 | $194.71 | BMO | $168.46 | BMO |
| 40 | $500,000 | $367.83 | BMO | $318.67 | BMO |
| 40 | $1,000,000 | $718.67 | BMO | $614.50 | BMO |
| 50 | $250,000 | $296.58 | BMO | $260.33 | BMO |
| 50 | $500,000 | $569.70 | Desjardins | $498.15 | Desjardins |
| 50 | $1,000,000 | $1,126.17 | BMO | $973.67 | BMO |
No single insurer is always cheapest. At 50 and $500,000, Desjardins had the lowest sample; BMO led most other cells. These are sample market quotes, not guaranteed premiums.
Term 100 premium and lifetime cost
Pick an age, sex and amount from the sample table to see the monthly premium and what you would pay in total by age 100.
Uses the October 2026 sample premiums above and assumes the premium stays level until 100. It ignores investment growth on money you would otherwise keep.
Term 100 vs whole life, side by side
| Question | Term 100 | Whole life |
|---|---|---|
| Lifelong protection? | Often yes, subject to the contract | Yes |
| Cash values | Limited or none, depending on the product | Commonly guaranteed cash values |
| Premium period | Often to age 100 | Life pay, pay to 65, 20-pay, 10-pay and others |
| Dividends | Generally not a feature | On participating plans; not guaranteed |
| If you stop paying | Coverage usually lapses with nothing back | Cash value can fund a reduced paid-up policy or be taken as cash |
| How to compare | Death benefit, premium period, guarantees | Death benefit, guarantees, cash values, paid-up options, dividend scale |
Don't compare on premium alone. A Term 100 quote and a whole life quote for the same amount can look close in price and still be very different contracts.
Who each one suits
Term 100 may fit if
- You need a death benefit for life, such as estate liquidity, equalizing an inheritance or final expenses.
- You value a level premium for life more than savings inside the policy.
- You want the lowest cost for lifelong cover and plan to save or invest separately.
Whole life may fit if
- You want cash value you can borrow against or use later.
- You want to finish paying in 10 or 20 years, or by 65.
- You want participating dividends that can grow the death benefit over time.
Not sure you need lifelong cover at all? Start with term life vs whole life. For costs, see whole life insurance cost. If the need ends at retirement, a long term may be enough: see term life for temporary needs and Term 30 vs Term 40.
Term 100 and whole life questions
What is the difference between Term 100 and whole life?
Both can cover you for life, but Term 100 usually has little or no cash value, while whole life commonly builds guaranteed cash values and may pay dividends.
Term 100 is the lowest-cost way to buy a lifelong death benefit. Whole life costs more but gives you cash values, paid-up options and more ways to pay.
Is Term 100 cheaper than whole life?
Often, for the same death benefit, but not in every case.
Age, insurer, amount and the guarantees in each contract change the price. Compare real quotes rather than assuming one type always costs less.
Why does Term 100 at age 40 show a 60-year premium period?
Because premiums are paid to age 100: 40 plus 60 years reaches 100.
In our samples the premium-paying period (PPP) is 70 years at age 30, 60 years at 40 and 50 years at 50.
Does Term 100 have cash value?
Usually little or none. BMO, Empire Life and Desjardins all describe their Term 100 plans as having no cash value.
If you cancel, you generally get nothing back. If you want a policy you can borrow against or surrender for cash, look at whole life.
What happens at age 100 on a Term 100 policy?
It depends on the contract. On Wawanesa's Term to 100, for example, coverage continues for life and is paid up at 100.
Check the wording of the policy you are offered.
Should I choose Term 100 instead of a 20-year term?
Only if the need truly lasts for life. A 20-year term costs far less for a temporary mortgage or income need.
At 40, a 20-year term for $500,000 for a non-smoking man was $43.65 a month in our sample, against $367.83 for Term 100.
Can I convert my term policy to Term 100 later?
Often yes. Several insurers let you convert term to Term 100 or whole life without new medical evidence, up to an age limit.
Desjardins allows conversion until age 70 and Empire Life up to 75. See our term life guide for more.
Which is better for estate planning?
Term 100 gives the cheapest guaranteed lifetime death benefit; whole life adds cash value and, on participating plans, dividends that can grow the benefit.
For capital gains on a cottage or business, see life insurance for estate taxes.
Written by Pankaj Bhatia, CHS, PFA
Insure In Canada Inc. · Licensed in Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick and Nova Scotia
Pankaj puts Term 100 and whole life illustrations for the same death benefit side by side and walks through the guarantees, cash values and payment period on each before you decide.
Call 647-640-2222 · WhatsApp · info@pankajbhatia.ca · About Pankaj
Offices: 205-5250 Solar Drive, Mississauga, ON L4W 0G4 · 206-460 Hespeler Rd, Cambridge, ON N1R 0E3
Sources and related pages
- Financial Consumer Agency of Canada: Life insurance (whole life and cash value)
- LifeGuide 2026.10A Term 100 survey, regular non-smoker (October 2026)
- BMO Insurance: Term 100 and whole life (our insurer page)
- Wawanesa Life: Lifetime Term to 100 (our insurer page)
- Empire Life: Solution 100 (our insurer page)
Sample rates are October 2026 market quotations, not guaranteed premiums. Dividends on participating policies are not guaranteed. Product features differ by insurer; the contract governs.