A Closer Look: Term 30 Life Insurance

by aaronb

Which Term 30 policy is right for you.

Term life insurance provides a level, tax-free death benefit with premiums fixed for a stated term. Traditionally, most term policies are either five, ten or 20 years, but recently, as Canadians have begun to increase their debt load and the amortization period of their mortgages, Term 30 policies are on the rise. On the surface, the coverage is straight forward, but rates can vary substantially between carriers. The following chart looks at the main features and pricing from five of the top Term 30 life insurance carriers in Canada:

BMO Insurance

Coverage is renewable to age 100

Convertible to age 70

Preferred rates are available

Industrial Alliance

Coverage is renewable to age 100

Convertible to age 65

Preferred rates are available

*Industrial Alliance offers a "Pick-A-Term" Policy, which allows you to pick terms between 10 and 40 years.

Unity Life  

Coverage is renewable to age 85

Convertible to age 65

Preferred rates are available

Transamerica

Coverage is renewable to age 100

Convertible to age 71

Preferred rates are available

*Transamerica's Term 30 has a unique paid-up feature. The policy has paid-up insurance values and cash values after 20 years.

Primerica

Coverage is renewable to age 95, but turns into an annual renewable term after the first 30 policy years.

Coverage is not convertible, as Primerica does not offer a permanent life insurance policy.

Preferred rates are available.

The following is the Term 30 pricing for a 40-year-old, female non-smoker at $500,000 of coverage at standard rates for the above insurance carriers:

Unity Life $76.95/month

Industrial Alliance $83.25/month

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