30 year term life insurance Canada is a newer policy type (relatively speaking). It’s characterized by premiums that are level for 30 years and a level death benefit. Commonly both the premiums and the death benefit are fully guaranteed.
At the end of the initial 30 years (at the renewal), 30 year term policies generally continue in force with the same death benefit, but at a much higher premium. Those increased premiums at renewal are so high as to be unaffordable. Therefore you should assume that a 30 year term policy is really only suitable for insurance needs no longer than 30 years.
30 year term is commonly purchased by consumers in their 20’s and 30’s looking to provide insurance coverage for their family. 30 years is a good match for family needs at that age, as it gets most people through their child-rearing years, mortgages, and income earning years.
When shopping for 30 year term there’s two additional things you should look at. First, you should also shop for term to age 65 (as the durations are often similiar, but premiums could differ). Secondly, you should premiums compare with 20 year term. Even if want insurance for 30 years, in some cases 20 year term is so much cheaper that people will purchase a term 20 policy instead (and assume they’ll worry about insurance again in 20 years). I’ve no idea why this is, but I find that the cost difference really starts to run away around age 32 – before that age 30 year term is seen as price viable against a 20 year term. After age 32 the differences in price between a term 30 and term 20 are great enough that some people will opt for a term 20 instead.