Life Insurance For Seniors

In this article, you’ll learn everything you need to know about acquiring life insurance for seniors and as you age into your prime

Ensure Your Loved Ones Are Safe and Protected

Those who are 60 years of age or older can use life insurance as a strategy to leave their loved ones or estate a tax-free sum of money.

Seniors without large savings, who might still have bills or dependents who need to be supported in the event of their death should think about getting life insurance.

Permanent coverage is an excellent alternative that assures coverage for funeral costs and medical debt for seniors 75 and beyond since term life insurance is typically not available to them.

life insurance for seniors over 70 in canada

Many seniors aged 60 or over may have adequate savings to meet all the foreseeable and unforeseeable expenses later in life and may determine they have no need for life insurance at this time.
However, there are still situations where a senior may be responsible for debts and dependents and not have enough savings to cover these expenses, should they pass away.

Life insurance for seniors becomes an important consideration in these situations. As well, depending on the type of coverage one chooses, life insurance can also be an avenue to leave money behind for your family or loved ones on a tax-free basis—which we’ll get to later on.

6 Reasons why people choose life insurance

Give peace of mind to your loved ones

Give your loved ones peace of mind when you leave them a tax-free sum of money

Create wealth for your family

Life insurance for seniors is a successful way to transfer wealth within the family, which can be used by future generations to fund their education, buy a home, or just to have more security financially.

Covering your debts

Protect your loved ones from having to pay off any debts incurred from end-of-life care.

Covering final expenses

A excellent approach to guarantee coverage for funeral costs or medical debt is with permanent coverage

Taxes and estate preservation

In most cases, your estate passes to your spouse without having a major tax impact. However, taxes are typically owed when your estate is passed on to your children

Donation to charity

Leave what you've created throughout your lifetime to your favourite charity

What are the types of life insurance and how do they work?

Whole life insurance and term life insurance are the two primary types of life insurance, respectively. Seniors in Canada have access to both of these types. Which senior life insurance policy is best for you will totally depend on your circumstances. Consider your financial objectives when choosing between different solutions. Next, determine how much money you’ll need to achieve these objectives.

Let’s examine which senior life insurance policy is better in each scenario now.

You have outstanding debts. Consider purchasing term life insurance if you have a debt, such as a mortgage, that your spouse or children would inherit. After your passing, your beneficiary may utilize the insurance benefit to settle the debt.

You need to set aside money for your funeral. Whole life insurance, such as term to 100, may be a preferable choice in this situation. It will lessen the strain of funeral planning for your family.

 You are a parent of a special needs child. Making sure a dependents won’t suffer financially after your passing is possible with life insurance. Consider purchasing full life insurance if you are financially dependent on someone.

Estate Planning.  Estate planning is the principal use of last-to-die life insurance. The death benefit of such a policy is often paid out only after the passing of the surviving spouse, making it less expensive than regular whole life insurance.

You want to develop a second source of income for savings. A portion of your premium for some whole life insurance policies, such as whole life insurance, is deposited into a savings account. You are free to make withdrawals or loans against this savings account and use the funds however you see fit.

Do keep in mind that whole life insurance has no expiration date, unlike term life insurance. So they are more expensive. Additionally, among permanent life insurance policies, the premiums for those that do not build cash value are higher than those that do.

The Best Life Insurance Companies for Seniors

These are the top rated insurance companies in Canada and we work with them so you know they’ll have your back when you actually need them.

Talk with a professional

It’s free to have a conversation with one of our life insurance agents. There is no pressure or obligation to get life insurance when we help you with your questions

funeral insurance for seniors in canada

The Best Type Of Life Insurance For Seniors

We all try to choose the best options for our financial well-being. The best life insurance for seniors in Canada, however, is a matter of opinion and depends on a variety of particular aspects, including the desired level of coverage and overall health.


A fully underwritten term life insurance policy with the option to convert should the policyholder outlive the initial term can be extremely advantageous for a healthy senior in their 60s.

If they die away during the first few years of the coverage, this would pay off any outstanding debts and enable them to leave a legacy for their dependents and loved ones.


In contrast, a senior over 70 who has underlying medical issues can choose a non-medical life insurance policy to pay for funeral and medical costs after passing away.


Seniors of any age can benefit from whole life insurance since it offers lifetime protection and allows them to use the cash value’s tax-deferral features while accumulating an inheritance for their children or grandchildren.

Making a decision can be difficult with so many options available. Don’t worry if you are still unsure of your situation or which insurance coverage to get. Our insurance advisors have years of expertise in assisting citizens in Canada to compare life insurance quotes and select the best insurance plan for their requirements. To discuss your options and choose which product is ideal for you, schedule some time with us.

Term Life Insurance

Ideal for seniors under the age of 75 who still have debts to pay off (mortgage)

Permanent Life Insurance

Ideal for seniors who are healthy and want to cover final expenses and other -end-of-life costs

Simplified Issue Life Insurance

This is ideal for seniors over the age of 60 with health issues that would not pass medical exams

Guaranteed Issue Life Insurance

Ideal for seniors who have with major health complications and want to cover final expenses

Although seniors as a group do not typically purchase life insurance plans, several types of coverage do have age restrictions.
Businesses and governmental organizations use the term “senior” to designate an age group generically.

While your neighbourhood pharmacy may start offering a senior discount after you are 55, senior-specific services from another organization might not start until you are well into your sixties (like the Canadian Pension Plan, or provincial senior drug benefits).
Fortunately, insurance providers don’t often leave things open to interpretation. As opposed to a broadly defined “age group,” your eligibility for coverage is only determined by your precise age.
Given this, the majority of life insurance companies refuse to issue term life insurance policies to those above the age of 75. Instead, these potential insurance buyers would have to look for an insurer with later age restrictions or decide to get whole life or permanent insurance. 

Term Life Insurance For Seniors

Most term insurance policies expire between the ages of 75 and 85 and give coverage for a set amount of time, such as 10 or 20 years.

Most Canadian life insurance contracts can be renewed or changed to permanent policies prior to a set age, like 65 or 70.

Ideal for addressing issues like loans, mortgages, and other pressing immediate needs

term life insurance for seniors in canada

How much does term life insurance cost for a senior?

Age, gender, smoking status, way of life, and general health are just a few of the variables that affect how much life insurance premiums cost.
The cost of $100,000 of 20-year term life insurance for a typical 60-year-old non-smoking male in good health would be just over $97 per month.

The starting monthly cost for the same coverage for a female nonsmoker is over $64.
These rates rise to $198 and $126 per month, respectively, when you smoke.

can seniors get term life insurance at 70 in canada

What is the maximum term a senior can choose for a term life insurance policy?

If you are 60 years of age or older and are thinking about getting term insurance, you can get coverage up to age 85.

In other words, depending on your age, your options are typically limited to terms of 10 years, 20 years, or 25 years. As previously indicated, once a senior reaches the age of 75, the majority of insurance firms stop offering them term plans.

The only other option for people over 75 is permanent insurance, such as whole life or term 100.

converting term life insurance to a whole life policy in canada

Can term life insurance taken by a senior be converted into a permanent form of insurance?

Yes, senior life insurance is convertible to permanent protection. But keep in mind that most term life insurance contracts can only be converted before the age of 71, with some companies making an exception and allowing conversion before the age of 75.
If you are 65 years old and have a 10-year term policy, you can convert the policy into a permanent life insurance policy by using the convertibility option before you turn 71. On the other hand, there is no conversion option if you are 72 years old when you purchase a term policy.

A permanent form of insurance, such as whole life or universal life insurance, might be a better choice if you think you will outlive your policy at that point because it will protect you until the end of your life.

Don't let your family lose by not being protected

The best time to be prepared was yesterday, today is the next best time. The longer you’re not protected, the higher chance of loss

Life Insurance for Seniors with No Medical Exam

Life Insurance for Seniors with No Medical Exam

Yes, a senior may choose to apply for coverage without a medical exam in a number of circumstances.

Seniors are at high risk for developing serious pre-existing medical conditions may not be eligible for coverage that is underwritten traditionally or that includes routine medical screening.

In other instances, some people just choose not to undergo the time-consuming or physically demanding process of a medical exam. No-medical life insurance plans are available for certain scenarios, albeit the premiums are typically higher than those of traditionally underwritten policies.

What is simplified issue whole life insurance for seniors?

What is simplified issue whole life insurance for seniors?

A type of non-medical insurance product is simplified issue life insurance. It allows for the purchase of life insurance without the requirement of a medical examination and instead asks a few health-related questions to evaluate whether the applicant is eligible for simplified issue insurance.

Such inquiries enable binary Yes/No responses to health- and lifestyle-related questions to ascertain product eligibility.

Companies may occasionally impose a waiting period before the coverage begins. The insurance company would only repay the premiums paid for the policy if you passed away during this waiting period, which is normally 2 years, as a result of any medical condition. The insurance company is not required to pay the whole death benefit to your chosen beneficiary. Even for such non-medical products, the waiting time does not apply in the event of an accidental death.

What is simplified issue whole life insurance for seniors?

What is guaranteed whole life insurance for seniors?

Guaranteed life insurance offers protection regardless of one's health status at the time of purchase. Guaranteed issue policies are similar to simplified issue life insurance in that a medical exam is not necessary. Additionally, no health questionnaire is necessary.
Again, the convenience of having coverage does come at a cost in the shape of higher rates. The rationale is that coverage is assured regardless of any pre-existing medical conditions, compensating the insurance company for taking on a higher risk by providing coverage without a medical examination.

Additional restrictions, such an exclusion period (occasionally between one and two years) during which no claims are allowed, are always included in guaranteed issue life insurance contracts.

Typically, the death benefit is $50,000 or less. These plans are often given permanently, providing coverage for the whole term of the contract.