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.
We have built a graph to show you how the policy price (premium) stay level for 30 years. The death benefit will also remain level for 30 years as well.
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 Buys 30 Year Term Life Insurance?
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.
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.
Most life insurance companies in Canada have a feature available called “renewable” or “renewability” where they allow you to continue your 30 year term policy after the initial 30 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. Most 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.
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.
This is a feature that can become very valuable. If you purchased a 30 year term policy and were diagnosed with a health condition that made it so you were unable to ever purchase life insurance again, having a policy that had a conversion option would become very valuable.
The conversion option would allow you the ability to switch your term life insurance policy to a permanent life insurance regardless of your health- the life insurance has to offer you permanent life insurance at healthy rates. This would ensure that you have the ability to have lifelong insurance protection regardless of your health.
We recommend that you speak with one of our licensed brokers regarding these options because they can be quite hard to understand without a clear explanation.
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Available Term Lengths in Canada
30 Year Term Life Insurance is one of the term lengths available to purchase in Canada. If you are interested in learning about other term life insurance products, please use the links below.
- 10 Year Term Life Insurance
- 15 Year Term Life Insurance
- 20 Year Term Life Insurance
- 25 Year Term Life Insurance
- 30 Year Term Life Insurance
- 35 Year Term Life Insurance
- 40 Year Term Life Insurance
- “Pick A Term” Life Insurance (offered by Industrial Alliance Insurance)
- “Your Term” Life Insurance (offered by RBC Insurance)
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One of our licensed life insurance agents will be happy to help you with any questions.