30 Year Term Life Insurance policies in Canada are life insurance policies that have premiums that are level for the first 30 years. After that time, if the policy is renewable then the coverage can continue (or you can cancel) but with higher premiums. If the policy is not renewable, then it simply expires and coverage is over without recourse.
30 yaer term is suitable for young families that have a timeframe of about that long – often Canadians in their late 20’s and early 30’s, as a 30 year term will cover them until approximately retirement – at which point the assumption is that children won’t be financially dependent, and there will be financial savings enough so that large amounts of life insurance are no longer required.
Of note, we find that 30 year term premiums are competitive up until about age 32. After that point the cost difference between a term 30 and a term 20 is so large that most Canadians will choose a term 20.
You should ensure that your term 30 policy is renewable and convertible – don’t accept a policy that is not renewable and convertible unless you have no other choice. The risk is that at the end of the 30 years if you’ve become uninsurable, you’ll have no other options for life insurance (and if you’re uninsurable, you’ll want options). If the policy is renewable and convertible you’ll have life insurance choices still available to you, without regard to your health or medical conditions.
If you’re considering term 30, you should also read about our Term Stacking strategy to save even more money. Term stacking details can be found on our Term Life Insurance Exchange option page.