Getting older comes with shifts in priorities and responsibilities. While life insurance is crucial at every stage, the options and strategies for seniors need special consideration. This guide will explore the life insurance landscape for those aged 50 and above in Canada.
We’ll cover everything from policy types to costs, eligibility, and expert tips for finding coverage that fits your needs.
What is Life Insurance for Seniors?
Life insurance for seniors refers to policies available to those aged 50 and above in Canada. Although 50 may seem young, you’re often considered a “senior” in the insurance world at this age. That’s because premiums rise rapidly after 50 due to increased health risks as you age.
While the policies don’t differ from those for younger adults, seniors face more limited options. Maximum term lengths, coverage amounts, and eligibility all change as you enter your 60s, 70s, and beyond. However, with proper planning, Canadian seniors can still find affordable life insurance to protect their families.
Why Do Seniors Need Life Insurance?
There are several vital reasons life insurance remains relevant in your retirement years:
Final Expenses
The payout from a life insurance policy creates a dedicated source of funds to cover end-of-life costs. This includes:
- Funeral arrangements
- Burial/cremation costs
- Outstanding medical bills
- Probate and legal fees to settle estate
These expenses could quickly derail a family’s finances at a challenging time without coverage.
Read more: Funeral Insurance in Canada
Mortgage and Debts
While many seniors are mortgage-free, 21% of Canadians over 65 still make payments. A policy’s death benefit ensures that surviving family members can maintain home ownership. Life insurance also helps cover any remaining consumer debt, such as credit cards or personal loans.
Income Replacement
If a pension or other retirement income stream ends when a senior passes, the payout from life insurance can fund replacement income so the surviving spouse can maintain their standard of living.
Special Needs Dependents
Seniors caring for an adult child or other dependent with long-term disabilities can purchase a policy to help fund a Special Needs Trust, which ensures their dependents are cared for.
Estate Taxes
In large estates, taxes owed on assets transferred to heirs after death could leave beneficiaries with an unexpected bill. Life insurance payouts are exempt from taxation, making them ideal ways to provide liquidity for taxes owed.
Leaving an Inheritance
The tax-exempt payout from a life insurance policy enables seniors to leave a legacy for loved ones or causes. This can give them peace of mind that they will be cared for after your passing.
Charitable Donations
Similarly, the payout can facilitate a more significant charitable bequest than would have been possible from your estate alone.
Types of Life Insurance for Canadian Seniors
Now that we’ve covered the key reasons to consider coverage, let’s explore the main policy options available to seniors and when they make sense.
Term Life Insurance
Term life insurance covers a set duration or “term” – typically 10 to 30 years. This affordable option works well for temporary needs like:
- Paying off a mortgage
- Income replacement until a spouse’s retirement benefits kick in
- Funding needs for minor dependents
Term policies only pay out if you pass away during the term. There is no cash value accumulation or savings component.
Benefits
- Lower premiums than permanent insurance
- Coverage amounts often up to $1 million
- Can convert to permanent insurance later on some policies
Limitations
- Coverage ends at the term’s end if unpaid
- Converting to permanent insurance gets more expensive with age
- Most companies won’t issue new terms past age 75
Permanent Life Insurance
Whereas term insurance provides temporary protection, permanent life insurance is designed to provide lifelong coverage. The two main types are:
Whole Life Insurance
With whole life insurance, coverage lasts your entire life, provided you keep making premium payments. Your beneficiaries would receive the death benefit no matter when you pass away.
A portion of the monthly premium is directed into a cash value fund. This component grows on a tax-deferred basis and can be borrowed against. Having access to this cash value while alive makes whole life insurance appealing for:
- Supplementing retirement income
- Financial flexibility to manage unexpected expenses
Given its lifelong coverage, whole life insurance is well-suited for estate planning and final expenses. However, the premiums are significantly higher than those of term insurance.
Universal Life Insurance
Universal life insurance is another permanent option offering lifelong coverage. Like whole life, it has a cash value component that is accessible while alive.
It offers more flexibility to adjust the death benefit and pay higher or lower premiums based on changing needs. This adaptability comes with more complexity to understand.
Permanent life insurance is best for seniors focused on the following:
- Final expenses and funeral costs
- Estate planning and leaving an inheritance
- Accessing cash value for income in retirement
But, the premiums may be prohibitive for some budgets.
No Medical Exam Life Insurance
Traditionally, underwritten policies from mainstream insurers require full disclosure of your medical history and often require a physical exam.
No medical exam life insurance skips this process and uses a simplified questionnaire instead. This makes it ideal if you have pre-existing conditions or want to avoid invasive tests.
The trade-off is higher premiums and sometimes limited death benefit amounts. Two types of no medical exam life insurance exist:
Simplified Issue Life Insurance
With simplified-issue life insurance, you’ll answer 5-10 questions about your health, lifestyle, and family history. In most cases, coverage up to $500,000 is possible.
Approval is not guaranteed—around 1 in 3 applicants are declined. However, simplified-issue life insurance can be a lifeline for seniors who fall outside the parameters of conventionally underwritten policies.
Guaranteed Issue Life Insurance
As the name indicates, approval for guaranteed-issue life insurance is assured. No health questions are asked, making it the most accessible type of policy to qualify for.
The apparent downside is high premiums for a maximum $25,000 death benefit. Coverage may only take effect for up to two or more years. But it can provide a small amount of protection for seriously ill seniors.
No medical exam life insurance meets the needs of seniors who:
- Have chronic health conditions
- Want to avoid medical tests and exams
- Need quick coverage without a lengthy underwriting process
The premiums are prohibitive for those in good health compared to medically underwritten options, but it remains a valuable last resort.
How Much Does Life Insurance Cost for Seniors?
Premiums for life insurance for seniors vary based on the type of policy chosen, along with these main factors:
- Age: Costs rise steadily as you age due to increased health risks.
- Gender: Women often pay less than men due to a longer life expectancy.
- Health: Any chronic health conditions or family history leads to higher premiums.
- Coverage amount: More coverage means more significant premiums are required.
- Term length: Longer terms have higher premiums but offer more protection.
- Type of policy: Permanent insurance costs more than temporary term insurance.
- Smoking status: Smokers can pay over 50% more than non-smokers.
Let’s review some sample premium costs for seniors at different ages to understand how life insurance gets more expensive as we age:
Life Insurance for Seniors Over 50
Seniors in their 50s will enjoy the lowest premiums.
10-Year Term Life Insurance
$100,000 Coverage | $500,000 Coverage |
Male: $30/month | Male: $105/month |
Female: $25/month | Female: $75/month |
Whole Life Insurance
$25,000 Coverage | $100,000 Coverage |
Male: $60/month | Male: $250/month |
Female: $40/month | Female: $170/month |
Coverage is affordable and widely available for healthy seniors at this stage. Term life insurance for temporary needs or whole life for lifelong protection are both practical options before age 60.
Life Insurance for Seniors Over 60
Once in their 60s, costs increase mildly but remain manageable for most. No medical exam policies also become an option for those with chronic conditions.
10-Year Term Life Insurance
$100,000 Coverage | $500,000 Coverage |
Male: $55/month | Male: $175/month |
Female: $35/month | Female: $125/month |
Whole Life Insurance
$25,000 Coverage | $500,000 Coverage |
Male: $95/month | Male: $330/month |
Female: $75/month | Female: $235/month |
Term life and whole life insurance are still viable for seniors in average health. No medical exam policies become an option for those with chronic conditions.
Life Insurance for Seniors Over 70
Once they reach their 70s, seniors face a steep rise in premium costs across all policy types as health risks escalate rapidly.
10-Year Term Life Insurance
$100,000 Coverage | $500,000 Coverage |
Male: $140/month | Male: $250/month |
Female: $95/month | Female: $150/month |
Whole Life Insurance
$25,000 Coverage | $500,000 Coverage |
Male: $95/month | Male: $330/month |
Female: $75/month | Female: $235/month |
Simplified issue and guaranteed issue policies become better options for less healthy seniors. Term insurance is still viable for active 70-somethings focused on temporary needs.
Life Insurance for Seniors Over 80
Life insurance becomes quite expensive – often prohibitively so – for people in their 80s. Most insurers will not issue term life policies after 80.
$10,000 Coverage | $25,000 Coverage |
Male: $125/month | Male: $250/month |
Female: $95/month | Female: $175/month |
At this stage, policy options dwindle. Small final expense whole life insurance or guaranteed issue policies make sense for otherwise uninsurable seniors focused purely on final costs. Expect to pay a steep premium for limited coverage.
What Factors Determine Life Insurance Rates for Seniors?
The main factors impacting life insurance rates for seniors are:
Age
As seniors age, life insurance companies in Canada view them as higher risk, meaning premiums rise steadily into their 70s, 80s, and beyond. Even a difference of 5 to 10 years significantly impacts rates.
Gender
According to research from Harvard Medical School, women have a longer average life expectancy than men. As women are expected to live longer, they pose a lower risk to insurers, which allows them to pay lower premiums than men for the same policy.
Health Status
Any current or prior health conditions will lead to higher premiums. Common senior health issues like heart disease, diabetes, COPD, and cancer can significantly increase rates and make coverage approval more difficult if not properly managed and disclosed.
Coverage Amount
Naturally, a higher death benefit payout requires higher premiums. For example, $500,000 in coverage will cost more than $50,000 since it represents a greater risk for the insurer. Choosing the lowest needed coverage amount helps reduce costs.
Term Length
Term life insurance pricing is directly tied to the length of coverage selected. Given the more extended coverage obligation, a 20-year term life insurance will have notably higher premiums than a 10-year term life insurance. After 70, terms over 10 years usually disappear.
Type of Policy
Permanent life insurance costs more than temporary term insurance since the latter guarantees a lifelong payout. However, term insurance rates jump dramatically upon renewal, whereas permanent policy pricing remains steady.
Smoking Status
Insurers charge much higher premiums for smokers due to the heightened mortality risk and health complications. In some cases, smokers pay over 50% more than non-smokers for the same policy.
How Seniors Can Find the Best Life Insurance Policy
Follow this step-by-step process as you evaluate options and identify the right life insurance match:
Determine Why You Need Coverage
Be very clear on your motivation for buying life insurance. Typical reasons Canadian seniors consider coverage include:
- Final end-of-life expenses
- Mortgage payoff
- Income replacement for dependents
- Funding estate taxes or inheritance wishes
- Charitable gifts
To identify the right policy type, term length, and coverage amount, you need to define an end goal. Prioritize your needs before comparing plans.
Calculate the Precise Amount Needed
Once your objectives are defined, calculate the exact death benefit required to meet them. Avoid rounded estimates. Here are approaches to arrive at ideal amounts for different goals:
- Final expenses: Research actual local costs for funeral, burial, probate fees, etc
- Mortgage payoff: Lookup your remaining principal balance
- Income replacement: Determine required annual income x 20 years
- Estate taxes: Project taxes on your assets per CRA’s calculator
- Inheritance: Specific lump sum for each beneficiary
Target the precise amount you want to accomplish without over-insuring. This prevents overpaying for unnecessary extra coverage.
Compare Quotes Across Providers
Use an online comparison tool like PolicyMe to quickly generate price estimates tailored to your age, health, lifestyle, and coverage needs.
Compare quotes across multiple companies and policy types to identify the best value fit. Seeing actual numeric costs makes weighing alternatives much more accessible.
Consider Your Coverage Time Horizon
Do you require lifelong coverage for final expenses and estate planning, or temporary coverage to pay off debt or replace income temporarily?
Your needs timeline will dictate whether term, whole life, universal life, or guaranteed issue insurance works best. Match the policy duration accordingly.
Evaluate Your Health Reality
Be realistic about your current health and medical history. For seniors with chronic conditions, simplified issue or guaranteed issue policies will provide the only path to attainable coverage.
Don’t waste time applying if you have conditions likely to make approval for underwritten policies impossible. Instead, go directly to life insurance with no medical exam.
Work With an Advisor
Speaking with an independent insurance advisor adds little time to the shopping process but provides invaluable guidance. Advisors assist with:
- Determining the right policy type for your situation
- Preventing over-insurance and saving you money
- Navigating medical underwriting and improving your odds
- Ensuring proper beneficiary arrangement and estate planning
Their expertise costs nothing extra yet dramatically simplifies the complex process of securing senior life insurance.
With research and expert guidance, seniors can find the right life insurance policy for their budget and financial situation. For ideal results, choose an established insurer with strong financial ratings.
The Best Life Insurance Companies for Seniors in Canada
Now that we’ve surveyed the main policy types let’s review some top insurers to consider for coverage as a senior.
Canada Life
Canada Life is one of the leading insurance providers for Canadians over 50. It stands out specifically for its simplified-issue permanent insurance product, SimpliTerm Life.
It provides lifetime coverage through a streamlined yes/no underwriting process. No medical exam is required, and health questions are limited. This opens the door to permanent insurance – and the security of lifelong coverage – for older or less healthy applicants unable to qualify for traditionally underwritten policies.
Sample Canada Life SimpliTerm Monthly Premiums at Age 65:
Coverage Amount | Premium |
$25,000 | $70 |
$50,000 | $105 |
$100,000 | $180 |
Canada Life also offers guaranteed issue policies with lifetime coverage and death benefits up to $50,000 for applicants through age 80. Their guaranteed life insurance acceptance and streamlined underwriting provide access for seniors unable to obtain coverage elsewhere.
Sun Life
Sun Life offers Canadians one of the strongest guaranteed issue life insurance options through its SimpleProtect no medical exam policy.
It provides acceptance for applicants aged 50 through 85 in poor health. Death benefits up to $50,000 are available – one of the higher maximums for guaranteed issue coverage. Sun Life SimpleProtect offers a life-saving option for seniors with chronic illness who cannot qualify through underwritten policies.
Sample Monthly Premiums for Sun Life SimpleProtect at Age 70:
Coverage Amount | Premium |
$25,000 | $160 |
$50,000 | $240 |
Manulife
Manulife’s VitalityLife is a new breed of underwritten life insurance that incentivizes healthy choices through premium discounts and rewards.
Applicants complete regular activities like walking, gym workouts, or online education modules. In return, they can save up to 40% on their premiums by demonstrating health consciousness. For active, health-focused seniors, VitalityLife rewards those habits with substantially lower costs.
Sample Manulife VitalityLife Monthly Premiums at Age 60:
Coverage Amount | Regular Premium | Potential Discounted Premium |
$250,000 | $117 | $70 |
$500,000 | $202 | $121 |
$1,000,000 | $347 | $208 |
Read full review: Manulife insurance in Canada
Equitable Life
Equitable Life stands out for its simple, affordable, guaranteed life insurance product.
It accepts applicants through a short online questionnaire, which does not require a medical exam. Seniors between 50 and 80 can qualify for up to $150,000 in immediate protection, with premiums starting around $37/month.
For those with health issues ineligible for coverage elsewhere, Equitable Life guaranteed life insurance is an accessible option.
Are There Life Insurance Options for Seniors Over 85?
Once seniors reach their late 80s and 90s, affordable life insurance options become very limited. Most insurers stop issuing any new policies by age 85. But some possibilities for seniors over 85 include:
- Converting an existing term life insurance policy to a permanent policy – Many term life policies allow for conversion to whole life or universal life coverage before a specified age limit, such as 80 or 85. This allows lifelong coverage to continue.
- Renewing an existing term life insurance policy if eligible – Depending on health, some seniors over 85 may qualify to renew a term policy one final time if available through their insurer. This extends protection further.
- Considering a final expense whole life insurance policy – Advisors may be able to source a limited amount of guaranteed issue permanent coverage to cover burial and final costs.
- Finding a guaranteed issue insurance provider – As a last resort, guaranteed life insurance issuers may offer minimal coverage without health questions up to certain advanced ages.
If you’re approaching 85 without coverage, speak with an insurance advisor immediately to explore your options. They can maximize your available choices based on your age and health. While not ideal, even a small policy can give peace of mind.
Is Purchasing Life Insurance Worth it for Seniors Over 90?
Once seniors pass 90, qualifying for individually purchased life insurance becomes nearly impossible. At this stage, the best options for coverage are through pre-existing policies you may have.
But some key reasons buying an individual policy over 90 is problematic include:
- Most insurers stop issuing coverage at 85 for seniors
- Extremely high premium costs due to short life expectancy
- Difficulty finding policies over small amounts like $10,000
- The requirement to be in exceptional health with no chronic conditions
- Lack of need for enormous death benefit due to advanced age
By 90, you have likely already taken care of primary financial considerations and end-of-life planning with your loved ones. Small coverage amounts may provide extra for final expenses but will make a small financial impact.
Holding onto that coverage can be worthwhile if you have an existing policy or buried benefit. Finding new life insurance for people over 90 is sometimes feasible or practical. Focus instead on managing any supplemental savings and tying up loose ends on your estate.asible or practical. Focus instead on managing any supplemental savings and tying up loose ends on your estate.
How Life Insurance Works for Seniors Over 95
By age 95, obtaining new individual life insurance isn’t a reality anymore except in extremely rare health circumstances. But there are still ways for seniors over 95 to have life insurance coverage through:
- Maintaining a life insurance policy purchased earlier – If you purchased an individual policy in your 60s or 70s, holding onto it provides protection.
- Having a buried benefit – Some credit cards, mortgages, union memberships, or insurance plans may include small buried life insurance benefits. Maintain these.
- Being part of a group life insurance plan – If enrolled previously through an employer or association, group life plans provide coverage.
- Considering crowd-funding for funeral costs – Loved ones could potentially start a crowd-funding campaign to cover your final expenses.
The key is that by 95, you must already have life insurance through one of those prior options, as buying new coverage will not be possible. Instead, work on finalizing any estate planning details and communicating final wishes to the family.
Is Life Insurance Worth it for Seniors Over 100?
Individual life insurance policies purchased at that stage are not feasible for seniors who live past 100. In fact, statistics show that only about 1 in 10,000 Canadians will reach 100.
But if you are part of that sporadic centenarian group, you may be able to continue an existing policy from earlier years. That coverage could provide final expense funds or leave an inheritance.
A few critical considerations regarding life insurance at 100+ include:
- There is almost no chance to qualify for individual coverage at 100
- Must already have a policy in place from earlier years
- Beneficiaries will receive very limited payouts if any
- It is better to focus on final arrangements and estate details
- Can leave small inheritance through other estate tools
Reaching age 100 without life insurance should not be viewed as a failure of planning. In reality, you’ve already outlived the vast majority of Canadians by decades. Pat yourself on the back and celebrate your longevity!
How to Shop for Life Insurance as a Senior in Canada
The process of finding and purchasing the right life insurance as a senior involves:
Conducting a Needs Analysis
Consider your financial obligations, debts, dependents, and final expense needs to determine the appropriate amount of coverage required. Avoid over-insuring.
Learning About Policy Types
Research different policies, such as term life insurance, whole life insurance, and no medical insurance. Weigh options like temporary vs. permanent coverage.
Getting Quotes
Use online comparison tools or work with an advisor to get rate quotes. Compare quotes from top insurers like SunLife, Canada Life, or Manulife.
Comparing Costs
Factor in the premium costs over 5, 10, 15, or 20 years to understand the overall investment for each policy.
Evaluating Insurers
Check ratings and reviews for your shortlisted insurers. Confirm they are financially stable with at least an “A” rating from third-party agencies.
Applying for Coverage
Complete applications online or with an agent’s assistance. Be prepared to answer questions about your health history.
Submitting Supporting Forms
You may need to complete supplementary documentation, such as a paramedic exam, a physician’s statement on your health, or bloodwork.
Getting Approved
If accepted, you’ll receive policy documents outlining your coverage amount, premiums, term length, cash value (if applicable), and other details. You can also activate any riders you requested.
Working with an experienced independent insurance advisor simplifies finding the right policy and insurer for your needs. Their expertise ensures you get ideal coverage.
What Medical Tests Are Needed for Senior Life Insurance?
Seniors applying for traditionally underwritten life insurance may need to complete medical tests like:
- Paramed exam – Basic health measurements like height, weight, pulse, blood pressure, and cholesterol.
- Blood and urine samples – Check for any issues like anemia, liver or kidney disorders, or diabetes.
- Electrocardiogram (EKG) – Screens for heart rhythm issues that could point to cardiovascular disease.
- Physician’s Statement – Your doctor describes medical conditions, prescription drugs, family history, and smoking status.
- Cognitive tests – Assess memory and evaluate dementia risks. It is done more commonly for applicants over 80.
- Personal history – Questions about your lifestyle, driving record, alcohol use, mental health, and high-risk hobbies.
Insurers will request the specific exams needed based on your age and health disclosures. The older you are, the more scrutiny is placed on confirming your health status. Taking tests simplifies getting preferred pricing.
Is No Medical Life Insurance More Affordable for Seniors?
No-medical life insurance tends to be more expensive than traditionally underwritten policies since the insurer takes on extra risk. However, no-medical policies likely represent the only coverage option for less healthy seniors or those over 85.
Here’s a comparison of potential costs:
Age 60, Male Non-Smoker:
– $150 monthly for $250,000 coverage – Traditionally Underwritten
– $300 monthly for $250,000 coverage – No Medical
Age 75, Female Non-Smoker:
– $425 monthly for $100,000 coverage – Traditionally Underwritten
– $945 monthly for $100,000 coverage – No Medical
As shown, no medical insurance premiums can be over double the cost of traditional coverage. But for seniors who can’t qualify through underwriting, they become the most affordable route to gain protection.
Do Pre-Existing Health Conditions Make Coverage More Expensive for Seniors?
Yes, having any pre-existing health conditions will cause insurers to charge higher premiums for seniors who disclose this medical history. Some common conditions impacting senior life insurance rates include:
- Heart disease
- Past heart attack
- Stroke
- High blood pressure
- High cholesterol
- Diabetes
- COPD
- Cancer
- Kidney disease
- Liver disease
- Neurological disorders
Less severe cases may get standard rates after a deeper review of test results and treatments. However, severe pre-existing conditions can make coverage 2 to 10 times more expensive than coverage for seniors with a clean bill of health.
No medical life insurance options don’t penalize for health history. However, encouraging seniors to disclose conditions honestly saves money over intentionally hiding information. Preventing unpleasant surprises down the road starts with open communication upfront.
Obtaining Life Insurance with a Pre-Existing Condition
Seniors with pre-existing health conditions can increase their chances of obtaining life insurance by:
- They disclose their condition immediately rather than trying to hide anything, preventing denial later.
- They should be detailed and thorough when describing their diagnosis, treatments, symptoms, and prognosis. This will allow underwriters to make the most informed decisions.
- Follow doctors’ orders diligently to manage their condition through diet, exercise, medications, and regular care. Well-controlled conditions fare better.
- Applying with companies open to high-risk applicants like Canada Protection Plan or Industrial Alliance. Specialized insurers improve odds.
- Opting for a shorter term length, like ten years, since insurers are more open to limited obligations.
- Consider no-medical life insurance policies that don’t penalize for health history. This route costs more but can be the difference between having coverage or not as a senior.
While pre-existing conditions make life insurance harder to obtain, being open and proactive gives seniors the best shot at approval. Know that coverage is still very possible in most cases.
How Long Should a Life Insurance Policy Last for Seniors?
Seniors have two options when it comes to life insurance term lengths:
Temporary Coverage – Typically 10 to 20 years. Offers an affordable way to gain short-term protection tied to specific financial needs or obligations. Useful if you need coverage for a set timeframe.
Lifelong Protection: Lasts your entire lifetime. Permanent policies ensure lifelong security for beneficiaries but cost more than temporary insurance. It is the right choice if you want indefinite coverage.
Consider which needs you want to cover, such as:
Shorter-Term Priorities:
- Paying off a mortgage or debt
- Maintaining income for a surviving partner until other assets can provide
Longer-Term Priorities:
- Final expenses whenever you pass away
- Financial protection for dependents like special needs children
- Leaving an inheritance or donation
Your advisor can help you select the ideal term length or permanent policy to align with your short and long-term financial priorities as a senior.
Purchasing Life Insurance at 50 vs. 60
Buying life insurance at 50 comes with several advantages compared to waiting until 60:
- Average monthly premiums can be 50% less for the same coverage amount at age 50.
- More policy types, term lengths, and benefits are accessible.
- Less stringent medical underwriting is required.
- You’re able to lock in lower rates for a longer duration.
Life insurance premiums rise significantly starting at age 60. A 10-year term policy that costs $100 monthly at age 50 could jump to $200 monthly by age 60. Delaying coverage until your 60s will cost you thousands in extra premiums over the policy’s duration.
Securing protection by 50 or earlier provides ideal rates you can maintain into retirement. This prevents the steep rise in premiums as you enter your 60s and beyond.
Buying Life Insurance at 70 vs. 80
Purchasing life insurance at 70 instead of waiting until 80 also comes with several key advantages:
- Much more affordable monthly premiums at 70. 30 to 50% cheaper.
- Broader range of policy options including 10 or 15-year term lengths.
- Less risk of health decline leading to uninsurability.
- More chance to plan for long-term needs like protecting dependents.
- Easier to qualify for preferred health rates by disclosing issues early.
While both ages come with limitations compared to younger ages, coverage at 70 remains significantly more straightforward to obtain and more budget-friendly. By 80, policy types narrow, and prices skyrocket.
If you’re approaching 70 and life insurance is still relevant, act quickly to gain coverage with ideal pricing and terms. Waiting until 80 will mean far higher costs and less protection. The difference of 10 years is very impactful.
Getting Life Insurance at 75 vs. 85
Purchasing life insurance at 75 instead of waiting until 85 brings crucial advantages:
- A more comprehensive range of policy options includes 10-year, convertible term life insurance. Most options disappear by 85.
- Monthly premiums about 30 to 40% more affordable at 75.
- More insurers are willing to take on insured risk at 75. Limited carriers insure those over 85.
- Opportunity for permanently locked-in pricing with converters and renewals.
- Potential to plan for more significant legacy gifts and inheritance amounts.
While finding coverage over 75 does become challenging, it remains far more straightforward than attempting to insure at 85 when pricing is astronomical and options severely limited. Working with an independent advisor can help those 75+ gain protection. But waiting until the past 80 is inadvisable.
Is a Medical Exam Required for Life Insurance Over 80?
Traditionally underwritten life insurance policies for seniors over 80 will require a health assessment, which generally involves:
- Paramed Exam: Basic vitals measurements and blood draws.
- Physician’s Statement: Your doctor details your health status and history.
- EKG Heart Test: Screens for risks of heart disease.
- Cognitive Tests: Assess thought patterns and memory to identify any dementia issues.
- Prescription History: Review your prescription medication usage.
- Mobility Questions: Discuss your self-care abilities, such as bathing, dressing, and eating.
- Driving Checks: A driver’s abstract may be required to confirm you haven’t had any recent collisions or tickets.
Rigorous health screening gives the most accurate picture of life expectancy by 80. This allows insurers to feel comfortable issuing permanent coverage. No medical policies forgo exams, but they cost more.
What is the Cheapest Type of Life Insurance for Seniors?
Term life insurance is the cheapest overall type for seniors due to its temporary and limited nature. Term policies come in lengths like 10, 15, or 20 years and only cover you during the specified period.
Term insurance is cheaper than permanent insurance because it has an eventual end date and doesn’t last your whole life. Many seniors choose an affordable 10 or 15-year term policy to cover temporary needs like income replacement, debts, or final expenses for a set number of years.
Here is a pricing comparison:
Age 60:
- $35 monthly for a $100K 10-year term policy
Vs.
- $175 monthly for a $100K whole-life policy
Term policies offer premiums about 60% less than permanent insurance for seniors on average while still providing substantial coverage. This makes term life insurance the most budget-friendly option.
What Is the Most Affordable Life Insurance for Seniors over 70?
For seniors over 70, a 10-year term life insurance policy will often be the most affordable overall option. By 70, most 20-year term options disappear, leaving 10-year terms as the most cost-effective way to gain temporary coverage.
A 10-year term policy for a senior over 70 may cost around $90 to $150 monthly for $100,000 in coverage compared to over $250 monthly for the same amount of whole life insurance.
Some other economical options for 70+ seniors to consider include:
- Final expense insurance, like burial insurance
- Small permanent policies like $25,000 whole life
- Simplified issue of life insurance (qualified applicants only)
- Riders like accidental death rather than whole policies
At age 70, term life insurance provides affordable coverage that can be supplemented with budget-friendly additions like final expense or a rider.
Is Guaranteed Issue Life Insurance the Cheapest Option for Seniors?
Guaranteed-issue life insurance is actually the most expensive way for seniors to gain coverage despite being guaranteed. Since approval is automatic with bare minimum health questions, insurers charge exceptionally high premiums with guaranteed-issue life insurance.
A typical scenario may look like:
- $75 monthly for $50K 10-year term at age 70
Vs.
- $200+ monthly for $25K guaranteed issue whole life at age 70
This shows that guaranteed issue insurance costs 60% more for half the coverage. Seniors pay a giant premium for the guarantee of approval. It’s a last-resort option if you genuinely can’t qualify any other way.
Guaranteed-issue policies also have numerous limitations, such as capped coverage amounts and longer waiting periods. For most seniors, there are much more affordable options than guaranteed life insurance.
Frequently Asked Questions from Canadian Seniors
Is Life Insurance Worth It for Seniors?
Absolutely - life insurance fills several vital roles later in life. The payout funds final costs, which provide inheritance money and create income for dependents after the policyholder's death.
The key is matching the right policy type and amount to your budget and needs. With expert help, seniors can find affordable options.
How Does Smoking Affect Senior Life Insurance?
Insurers charge much higher premiums for seniors who smoke - often 200% higher or more compared to non-smokers.
Quitting for at least one year is required to qualify for non-smoker rates. This incentive can provide extra motivation for cost-conscious seniors to kick the habit.
Can Seniors Get Life Insurance With Pre-Existing Conditions?
Yes, through no medical exam policies that don't require full underwriting. Simplified issue and guaranteed issue options offer a path to coverage for less healthy applicants.
While more expensive, they provide essential protection if chronic illness makes it impossible to qualify for standard insurance.
Is There An Age Limit For Buying Life Insurance?
Most life insurance companies will not issue new policies after age 85. But some simplified-issue whole life policies with strict underwriting go up to 90.
Guaranteed-issue life insurance generally stops at 80. Term life insurance, depending on the insurer, is capped between ages 70 and 75.
How Can Seniors Get The Best Rates in Canada?
The healthiest seniors with no chronic conditions will qualify for the most affordable underwritten term and whole life insurance rates.
Maintaining an active lifestyle and managing any minor health issues will pay dividends when applying. Considering coverage earlier (like in your 50s) also keeps costs down long-term.
What Facts Determine The Cost Of Coverage?
In order of impact, key factors that decide life insurance premiums are:
Age
Health conditions
Type of policy
Gender
Whether you smoke
Amount of Coverage
Focus on getting insured sooner rather than later for the most savings!
The Takeaway: Life Insurance Protection Remains Available for Canadian Seniors
The ideal life insurance policy for seniors balances affordable premiums with your budget, health factors, and motivations for needing coverage.
While costs rise later in life, viable options exist even for applicants with chronic illnesses through simplified issues and guaranteed issue insurance. Working with an expert advisor simplifies finding solutions tailored to your retirement situation.
With the right policy choice, you can safeguard your legacy and protect loved ones financially in your later years. Compare custom quotes online and speak with BIO Best Insurance Online to evaluate how life insurance can fit into your retirement planning.