35-year term life insurance could be one of the least common term lengths on the Canadian market. Most insurers offer standard terms of 10, 15, 20, 25, 30, or 40 years, but 35-year terms exist if you know where to look. As Canadians live longer, longer-term life insurance can provide essential financial protection for your loved ones.
What is 35-Year Term Life Insurance?
35-year term life insurance is a temporary life policy that provides coverage for exactly 35 years from your policy start date. You pay premiums throughout this period, and if you die during the term, your named beneficiaries receive a tax-free death benefit. If you outlive the 35-year term, the policy expires without any payout.
Unlike permanent life insurance, term policies build no cash value. You cannot borrow against a 35-year term policy or receive any surrender value if you cancel coverage. Its sole purpose is to provide affordable life insurance protection over an extensive period.
Premium structure typically remains level, meaning you pay the same amount throughout your term. However, some longer-term policies may not guarantee level premiums for the entire 35 years, so verify the premium guarantee period with each insurer before purchasing.
Who Needs 35-Year Term Life Insurance?
Based on its long-duration coverage, 35-year term life insurance policies are best suited to:
- New parents with young children (ages 0-5) who need coverage until children reach financial independence. A 35-year term covers you until your child reaches age 35, well beyond typical university graduation and career establishment.
- Young professionals (ages 25-30) who want long-term protection at today’s rates. Locking in premiums in your 20s provides 35 years of guaranteed coverage through your highest-earning decades.
- Long-term mortgage holders with amortizations exceeding 30 years. If you’re 30 years old with a 30-year mortgage, a 35-year term covers your mortgage plus an additional five years.
- Business owners who need an affordable way to protect partners in case of an untimely death.
- Those seeking specific duration coverage falling between standard options. If you need 33 years of coverage, a 35-year term prevents the gap you’d have with a 30-year policy while costing less than a 40-year term.
When A 35-Year Term May Not Be Right
Applicants over age 50 typically cannot qualify due to age limits. Those needing coverage for 30 years or less pay unnecessarily for extra years. Anyone wanting cash value accumulation should consider permanent insurance instead, as term policies build no cash value.
Alternatives to 35-Year Term Life Insurance
While 35-year term life insurance offers extensive temporary coverage, some Canadians may find other policy options better suited to their needs:
| Factor | 30-Year Term | 35-Year Term | 40-Year Term |
|---|---|---|---|
| Availability | Widely available | Limited (few insurers) | Widely available |
| Relative Cost | Lower | Middle | Higher |
| Maximum Issue Age (approx.) | ~55 | ~50 | ~45 |
| Ideal For | Coverage until age 55-60 | Specific 35-year need | Longest term protection |
| Insurer Options | Most insurers | Few insurers | Many insurers |
Standard 30-year and 40-year terms appear in most insurers’ product lineups. The 35-year term requires contacting Primerica or insurers offering flexible term ranges like Canada Life, Sun Life, RBC, or iA Financial.
A 35-year term costs more than a 30-year term because it provides five additional years of coverage, increasing the insurer’s risk. However, it costs less than a 40-year term, which extends coverage another five years beyond 35.
When to Choose Each Option
Choose a 30-year term option if you want more insurer choices or prefer the most cost-effective, longer-term option. The wide availability makes comparing quotes easier.
Choose a 35-year term if your specific coverage need spans 31-35 years, you’re under age 50, and you’ve confirmed availability with insurers listed above. This prevents paying for unnecessary coverage beyond 30 years while costing less than 40 years.
Choose a 40-year term if you need the longest term protection without purchasing permanent insurance, you’re under age 45, or your coverage needs extend 36-40 years. More insurers offer 40-year terms than 35-year options.
Permanent Life Insurance
Permanent life insurance options provide lifetime protection as long as premiums are paid, making them the most optimal alternative to Term 35 life insurance. Some whole life and universal life policies also build cash value that can be borrowed against or withdrawn.
The main downside is that permanent life insurance premiums are significantly higher than those of term insurance. But it does offer permanent death benefit coverage.
Cost of 35-Year Term Life Insurance in Canada
Premiums for 35-year term life insurance depend on 4 personal factors:
Age: Due to mortality risk, buying early offers lower locked-in rates.
Health: Poor health or pre-existing conditions result in higher premiums.
Lifestyle: Risky hobbies and smoking increase premium costs.
Coverage Amount: More coverage means higher premiums.
Here are sample monthly costs for a 35-year-old non-smoker with $250,000 in coverage.
| Age | Average Monthly Premium |
|---|---|
| 30 | $21 |
| 35 | $24 |
| 40 | $37 |
| 45 | $58 |
| 50 | $102 |
Comparing 35-Year Term Life Insurance Policies
When buying 35-year term life insurance, it’s always smart to compare options from the top term life insurance providers in Canada.
Key factors to consider when comparing policies:
- Premium rates for your age and risk class
- Ability to renew the policy after year 35
- Conversion options to permanent life insurance
- Included riders for disabilities or critical illness
- Premium discounts for healthy lifestyles
Here is an overview of 35-year term life insurance policies from leading insurers in Canada:
| Company | Product Name | Highlights |
|---|---|---|
| Sun Life | Best Term 35 | Convertible to permanent coverage |
| ivari | Term 35 | Includes critical illness rider |
| RBC Insurance | Term 35 | Renewable after year 35 |
| Manulife | VitalTerm 35 | Living benefits for terminal illness |
| Canada Life | Term 35 | Lower rates for active lifestyles |
Shopping around helps ensure you get the best policy, rates and features for your specific needs and budget.
How to Apply for a 35-Year Term Policy in Canada
Obtaining a 35-year term policy involves several steps, from determining suitability to completing medical underwriting.
Step 1: Determine if a 35-year term matches your needs. Use the decision framework in the “Who Should Consider” section above to confirm that this term length suits your coverage period.
Step 2: Contact insurers offering 35-year terms. Based on availability research, contact Primerica, Canada Life, Sun Life, RBC Insurance, or iA Financial Group. Note that Primerica typically requires working with a representative rather than obtaining quotes online.
Step 3: Request personalized quotes from multiple insurers. Compare premiums for the same coverage amount across different companies. Ask about premium level guarantees, conversion options (ability to convert to permanent insurance without medical exams before age 71).
Step 4: Prepare for medical underwriting. Term 35 typically requires full underwriting. This includes a health questionnaire and often a medical examination. Higher amounts often require more extensive underwriting.
Step 5: Compare policy features beyond price. Evaluate conversion options. Check whether the insurer offers riders such as critical illness coverage or a disability waiver of premium.
Step 6: Complete the application process. Submit required documents, undergo any medical exams, and wait for underwriting approval. Timeline varies by insurer and your health complexity.
Note: Approval is not guaranteed. Medical underwriting may result in higher-than-quoted premiums, exclusions for pre-existing conditions, or application denial. Verify the current application process and requirements at each insurer’s official website.
Tips for Purchasing 35-Year Term Life Insurance
Follow these tips when shopping for a 35-year term life insurance policy:
- Compare quotes from at least three providers to find the best rates
- Consider adding disability insurance to waive premiums if disabled
- Bundle policies to save on total insurance costs
- Be honest about your application and medical history
- Select a highly-rated insurer with strong financial stability
- Review policy exclusions and limitations carefully
- Notify your beneficiaries and keep contact details updated
- Maintain a healthy lifestyle to potentially qualify for discounts
The Bottom Line: Is 35-Year Term Life Right for You?
35-year term life insurance offers an extensive coverage period at affordable rates compared to permanent insurance. Rest assured that your loved ones will be financially taken care of in the event of the unexpected, providing you with peace of mind.
When shopping for coverage, be sure to compare policy options and premiums from top Canadian insurers. Work with an independent broker or advisor to select the right policy, coverage amount and features for your specific needs and budget.
FAQs on 35-Year Term Life Insurance
What health conditions can disqualify you from 35-year term life insurance?
Health conditions such as cancer, heart disease, and diabetes may result in increased insurance premiums or ineligibility for coverage, while minor health issues are typically considered acceptable.
Can smokers get approved for 35-year term life insurance in Canada?
Yes, but smokers pay significantly higher premiums than non-smokers due to the increased health risks. Some insurers may decline smokers.
What happens if you can't make premium payments on a 35-year term policy?
The policy will lapse if you fail to pay premiums on time. The insurer will notify you before cancelling coverage due to non-payment.
Can you convert a 35-year term policy to permanent life insurance?
Many 35-year term life policies allow you to convert to permanent insurance like whole life or universal life without new underwriting.
What is the difference between level and decreasing 35-year term life premiums?
Level premiums stay the same while decreasing premiums start higher and incrementally decrease over the policy term.
Can you adjust the coverage amount on a 35-year term life policy?
Yes, most insurers allow you to increase or decrease your coverage after initial purchase, subject to providing new evidence of insurability.
Is the death benefit on a 35-year term life policy guaranteed?
The death benefit remains fixed and guaranteed as long as you pay your premiums on time and don't decrease the coverage amount.
What happens if you die right after your 35-year term life policy expires?
If the insured dies after the 35-year term expires, the insurer will not pay out any death benefit to the beneficiaries.
Can you have multiple beneficiaries on a 35-year term life insurance policy?
You have the flexibility to designate multiple primary and contingent beneficiaries for your policy. Additionally, you can specify the exact percentage of the death benefit that each beneficiary should receive.
