30 year term life insurance is life insurance that has premiums that are level for 30 years after which point the policy renews at much higher premiums. The higher premiums at that point are so high that most people will view them as unaffordable. As a result, you should purchase this type of policy if you have insurance needs for about 30 years but don’t expect to need the policy past that point.
Common uses for 30 year term insurance are for mortgage life insurance and family income protection. While 30 year term has been prevalent in the US for a long time, it’s only recently started to become more popular in Canada, with companies such as BMO (Bank of Montreal), Industrial Alliance, Unity Life, Transamerica, and Primerica now offering products.
30 year term insurance in many cases is especially well suited for those with young families, as the length of time allows the insured to pay down their mortgages and other debts, build assets, and get any children to the point of being financially independent prior to the policy renewal. Typically 30 year term is most competitively priced for younger people. Older applicants may find 20 year term better fits their budgets.
You should only purchase a 30 year term policy if the contract has term to permanent conversion.