With price increases having made permanent life insurance too expensive for many clients, and term insurance products often failing to provide a sufficient duration of coverage, a new product from Waterloo, Ont.-based Equitable Life Insurance Company of Canada aims to provide a happy medium.

On Monday, Equitable Life announced the introduction of Term 30/65, a product that provides a longer duration of coverage than most term insurance policies, with premiums that are more affordable than permanent policies.

The product is Equitable Life’s lowest-cost option for 30 years of life insurance coverage. Guaranteed premiums are payable to the later of 30 years and age 65, and at that time, the plan expires. Thus, clients who apply at a young age could receive upwards of 45 years of coverage under the new product.

“We realized there was a growing demand for longer-term duration products in the marketplace,” says Natasha Krivokapic, director of individual product development at Equitable Life. “Right now, the market is dominated by term 10 and term 20 products, so people were looking for products to be beyond 20 years.”

Krivokapic says the product is ideal for clients who are looking to have coverage for the duration of their working years. She says Term 30/65 will likely resonate particularly with middle-income clients who are concerned with affordability of insurance premiums.

“People want to make sure they have income protection during their income-earning years,” says Krivokapic. “And, not everybody is able to afford permanent insurance.”

In addition, with a growing number of Canadians taking on mortgages and other debt later in life, she says it could be appropriate for clients who are looking for protection as they approach retirement.

“There are all kinds of reasons that they might want 30 years of coverage,” says Krivokapic, “and it may be that much more affordable than getting permanent insurance.”

Clients between the ages of 18 to 55 are eligible to apply for Term 30/65. The product is not renewable, however it is convertible until age 60. Clients have the ability to cover multiple lives under one plan, or add an optional rider to cover children.