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30 Year Term Life Insurance

30 Year Term Life Insurance has been prominent in the US market for many years, but only recently has it become cost competitive in Canada. There are not more than a handful of companies offering 30 year term life insurance at competitive premiums.

30 Year Term Life Insurance is a life insurance product that has premiums (the cost of the policy) that are level for 30 years. The death benefit (the coverage amount) is also level for 30 years. At the end of the 30 years the insurance policy typically renews automatically at higher premiums (higher cost), again level for another 30 years or sometimes it increases in cost every year. This process can continue until the expiration date of the policy which is usually around age 75 for most life insurance companies in Canada.

30 Year Term Life Insurance Graph

Example

A 30 year term life insurance policy for $750,000 will have the same premium for the length of the term (30 years). It will also have the same coverage amount for the length of the term ($750,000).

If you use our free online instant quote generator on our website you will be able to compare the pricing from all top life insurance companies in Canada (instantly, for free). There is a link for the quoter at the top of this page.

Who Is 30 Year Term Life Insurance Designed For?

30 Year Term Life Insurance is well suited for young families who are looking for protection that covers mortgage debt and/or protect their family financially. Many families who are looking to protect their family while their children are into their late 20’s/early 30’s and no longer financially dependent on them will purchase a 25 or 30 year term life insurance policy.

It is not typically purchase by many people who are over the age of 40 because the cost increases quite substantially. Most people will opt for a 10, 15 or 20 year term life insurance policy when they are over the age of 40.

Benefits

  • Affordable when compared to other life insurance policies
  • Peace of mind knowing that your beneficiaries will receive a lump sum amount, tax free in the event of your death
  • The rates (cost of the policy) are guaranteed for the length of the term of the policy
  • Policies are very customizable which allows you to ensure that it suits the needs of you and your family
  • Renewable (see below)
  • Convertible (see below)

Renewable

Most life insurance companies in Canada have a feature available called “renewable” or “renewability” where they allow you to continue your 20 year term policy after the initial 20 years.

At the end of the initial 30 years, the insurance policy typically renews automatically at higher premiums (higher cost), again level for another 30 years depending on the policy owners age. Some 30 year term policies will increase in price every year after the first initial 30 years. This process can continue until the date of the policy which is typically around age 75 for most life insurance companies in Canada.

The reason the premiums are higher after the first 30 years is because the insurance company does not require any health questions or medical evidence (blood, urine, etc.). They are assuming that something has changed in your health which is why the policy premiums increase. If you are in good health and still need life insurance at the end of the 30 year term, you are usually better off applying for a new policy to get a lower premium and cancel your old policy after the new policy is in force.

The longer the length of the term, the higher the premiums will be. For example, a 30 year term life insurance policy costs more than a 20 year term life insurance policy. We recommend contacting us to determine what policy is right for you.

Convertible

Most life insurance companies in Canada also have a feature called “convertible” or “conversion” which means that the policy owner is allowed to convert (switch) their term life insurance policy to a permanent life insurance policy (whole life, universal life, term to 100) without having to complete a medical exam or health questionnaire. You are just required to do a policy change where you complete some paperwork, select a permanent life insurance policy and pay premiums based on your age and smoking status.

Recommendation

When purchasing life insurance it is very wise to seek out independent, unbiased advice from a life insurance broker who represents all of the life insurance companies in Canada. Feel free to reach out to us by email or phone at 1-877-344-4011 to speak with one of our licensed brokers and determine what product is best for you and your family.