Life Insurance Over 50-Quotes, Best Companies, How To Buy It

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Buying A Life Insurance Policy When You're Over 50

A life insurance policy can always be bought at any time.

If you are in your 50s and want to buy life insurance in Canada, you have a few choices.

Term life insurance is a good choice if you are on a tight budget or only need protection for a short time, like until you retire or your kids move out.

It costs less and is easier to figure out.

Permanent life insurance, on the other hand, could be a good choice if you want to leave something behind, pay for your funeral, or want to add to your life insurance retirement plan.

Read on to find out if buying life insurance for people over 50 makes sense for you and how much it costs.

When you’re just starting out, it’s easier to see why you need insurance.

You might have a family to take care of or a mortgage to pay. But even if your kids have moved out and your mortgage is paid off, there are still many good reasons to have life insurance.

Even though you’re over 50, you might be surprised to learn that there’s still a lot to protect.

At this point in your life, it’s not as easy to decide how to protect your income as it was when your parents were young. There may still be someone who depends on you financially for a long time.

Your children come first. Don’t be surprised if they stay in the nest longer or leave and come back.

One big reason is that it’s hard for young people to move out of their parents’ house and into their own.

This is because real estate prices are high and the cost of living is going up.

On the other hand, if you want to help your kids get started and use your home equity to pay for a down payment or part of their mortgage, you might end up with more debt.

You’ll need to buy insurance against the financial risk of that debt.

If you’re over 50, you might also have elderly parents who depend on you for money. Or maybe you’re helping out an ex-spouse.

Even as you get older, life insurance is still an important way to protect those close to you.

Provide your family with a substantial amount of money

Imagine your family inheriting a tax-free 50K, 100K, 400K, or even a 1 Million dollars – think about how much they could use that.

Getting life insurance is a great way to leave money to people you care about.

This is because they won’t have to pay taxes on the money they get.

People depend on the money you make

First and foremost, life insurance is a way to protect your income.

If your family depends on your income to cover their living costs, a policy can help them out when you die or if you die early, especially if you don’t have much money saved.

Protecting your home

Life insurance is a key part of planning your estate, especially if you want to keep the value of your estate high.

The money from your policy can help pay for things like estate taxes, which can cut into the amount of money you want to leave to your heirs.

You would like to pay for your funeral

Many people in their 50s buy an insurance policy to pay for their funeral and other costs when they die.

Funerals can cost as much as $10,000 or more, so the money from a life insurance policy can help your family deal with their grief.

You have debts others will inherit

When you die, lenders take what you owe them from your estate. But if your spouse, parent, sibling, or friend is listed as a co-borrower or co-signer, your debt will be passed on to them.

Getting a life insurance policy for people over 50 can help make sure a loved one doesn’t take on a debt they might not be able to pay.

You want to make sure that if you get sick, you'll be taken care of

Most policies let you add a rider for an accelerated death benefit or a rider for a critical illness.

If you are diagnosed with a serious illness, these riders pay out a portion of your policy.

This can help ease financial stress if you need to get treatment.

Which Life Insurance Policy Should I Choose After 50?

Depending on your personal situation, some over 50s life insurance policies may be better for you than others.

There are two kinds of life insurance plans: term and permanent.

Term life insurance covers you for a set number of years or until you reach a certain age.

The only reason for these policies is to pay the death benefit when you die, as long as the policy is still in force. These plans don’t build up account value and are usually six to ten times cheaper than permanent life insurance.

Permanent life insurance is exactly what it sounds like: it covers you for your whole life.

A lot of permanent life insurance plans also build up cash value, which grows tax-free over time.

The value of your policy is for you to use during your life. When you die, your beneficiaries only get the death benefit, which is the coverage amount.

Is Term Or Permanent Life Insurance Better?

It all depends on your budget and how much money you need.

Most people don’t need more than term life insurance.

It is a better choice when your financial needs will end at a certain time.

For example, if you want over 50s life insurance to protect you until you retire or pay off your debts, you should get a term life policy.

You can choose the length of your policy and how much coverage you want.

Since term life is less expensive, it is also a good choice for people on a tight budget.

Permanent life insurance, on the other hand, may be a good choice for long-term financial needs.

For example, if you have someone who will depend on you for the rest of your life or if you want to leave something to your heirs, you might want to buy a permanent life insurance policy.

People with a lot of money (think over 50K) who want an extra place to invest might also benefit from buying a permanent life insurance policy with a cash value feature.

How much does life insurance cost in Canada for people over 50?

You can find cheap life insurance for people over 50 in Canada without having to give up protection.

To get started, it’s easy to compare life insurance companies that offer policies that match what you need.

When you look at policies, you’ll notice that your life insurance premiums start to go up a lot after age 50.

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What type of life insurance policy can you get if you’re over 50 in Canada?

Life insurance for people over 50 in Canada is best with these plans:

Term life insurance – Covering you during the times you need it the most

This gives you temporary coverage for a set amount of time, like 10, 15, or 20 years, or until you reach a certain age, like 65.

You could buy a life insurance policy that ends when you no longer have any financial obligations, like when you retire, pay off your mortgage, or when your grandchildren go to college.

If you die during the term, the death benefit is paid to your beneficiaries.

Whole life insurance covers your whole life.

Look into whole life insurance if you want to use your life insurance policy as a source of cash.

Part of your premiums are invested to give your policy a cash value, which earns interest at a set rate over time.

Once you have enough cash value in your policy, you can start to borrow against it.

This can be helpful if you need to pay for big expenses, like a home renovation.

Final expense insurance

These policies are often sold to people over the age of 55. They are meant to cover costs like a funeral and medical bills at the end of life.

Simplified issue life insurance

With simplified issue life insurance, you can skip the medical exam if you already have a health issue. You might have to fill out a questionnaire about your health, though.

You also should look into Walnut Insurance.

Add these to your life insurance policy if you can

You could add these riders to your coverage, depending on what you need:

Accelerated death benefit.

If you have a terminal illness, you can get a portion of the death benefit while you are still alive.

Rider for long-term care.

Pays out a portion of the death benefit to help you pay for long-term care costs, like a nursing home or a private nurse.

Term conversion rider to permanent coverage

This rider is available on term life insurance policies and gives you the option to switch to permanent coverage in the future, usually before you turn 65 or 70.

Walnut currently offers term life insurance available in 10-year terms and 20-year terms. Walnut does not offer whole or universal life products, but you can talk to our life insurance advisor

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Adults 18-70 years of age may be eligible to purchase online.

Consider the obligations and individuals you may want to take care of.

Are there debts, including mortgages, that you would like to cover in case you pass away?

Dependents like spouses or children who depend on your income for everyday expenses or for education?

Funeral and other final expenses?

And then reduce that amount by any liquid assets like cash, savings, or other investments that could be made available to loved ones immediately.

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Table of Contents

Life Insurance For Over 50

Life insurance is a fundamental investment to protect the life of your loved ones. It is important to get the right type of life insurance that meets your needs and budget.

life insurance for over 50 in canada

Protecting everything you've worked so hard for

Life insurance is an important financial decision for all Canadians. It is important to consider the different types of life insurance and the benefits that they provide.

Term life insurance provides a death benefit if you die within the term of your policy, typically 10 or 20 years. It also pays a cash value which can be used to help pay estate taxes or funeral costs. Whole life insurance provides a death benefit if you die during the term of your policy and also includes other benefits such as cash values, dividends, and loans against it.


life insurance for 55 in canada

For those whose young families depend on their salary for support, life insurance is crucial. However, that usually becomes less of a problem as people become older. People still have financial responsibilities long after their children have grown up. Additionally, there will always be final fees, such as funeral and hospital expenses, regardless of when you pass away. You can still apply for a policy later in life to assist prevent loved ones from losing money and having to pay your debts, even though life insurance coverage normally costs more as you age. Additionally, a life insurance policy can be used for estate planning and company protection.

7 Reasons why people choose life insurance

Protecting their family

Life insurance assists in covering lost wages, protecting your family from losing the house, and pay your children's college education

Covering final expense

Insurance plans can be built to cover funeral and death-related expenses

Protecting your business

Having a business continuity plan in place can be essential if you own or are a partner in a company to guarantee that the latter is taken care of.

Estate planning

You can save taxes and leave your heirs a legacy that reflects all your hard work

Donating to your favourite charity

When you sell a successful business or investment portfolio for retirement income, there may be significant capital gains taxes due.

Retirement savings

A permanent life insurance policy can provide a tax-favoured cash value that can be used to supplement retirement funds.

Replacing your pension

Getting life insurance protection can assist in meeting your spouse's ongoing financial demands if your pension is terminated when you pass away.

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

It’s crucial to comprehend how each form of life insurance security functions if you’re looking for life insurance over 50. That is the secret to attaining the necessary level of protection at a reasonable cost.

Term life insurance offers protection for a predetermined length of time, usually between 10 and 30 years. Your insurance coverage expires after that time period, and there will be no value or payout. Because it only offers life insurance, it is also referred to as “pure life insurance.” Comparing term life insurance prices to permanent life insurance, which has the potential to accrue cash worth (below). 

After your current term life insurance policy expires, you can apply for a new one, but your rates will likely be higher. There can be an age restriction that prevents you from requesting new coverage. But before the term expires, many term life insurance policies can be changed to whole life insurance without undergoing a fresh medical examination. Although the costs will go up, that can be a choice to keep your coverage in later years.

Lifelong coverage is what permanent life insurance is intended to offer.

It’s not a “pure” insurance product like term life insurance because it has a wealth-building element – the cash value of the policy – that makes the coverage extend indefinitely and offers other benefits. Your cash worth increases over time while being tax-deferred thanks to investments made with some of your premium money. You can borrow against cash value, utilise it to help pay premiums, or even surrender it for cash to boost your retirement income. 

A perpetual life insurance policy can be utilised as a tax-advantaged estate planning strategy because it is permanent and covers the rest of your life. For a particular death benefit, permanent insurance is more expensive than term insurance. Permanent insurance comes in two main varieties:

For as long as you live, whole life insurance offers assured death benefit protection while building cash value. As long as regular premium payments are made, a whole life insurance coverage remains in effect. The premiums never go up while the cash value grows tax-deferred at a guaranteed rate. Dividends are another benefit of policies from mutual life insurance companies (like Guardian), and they can speed up the growth of cash value. 

Additionally offering lifelong security, universal life insurance also has the potential to accrue more monetary value. A universal life policy, in contrast to whole life insurance, can provide you more flexibility because you can change your monthly payments within a certain range to better adapt to shifting employment situations. With universal life insurance, this unpredictability also means that cash value growth and the death benefit may vary, or even expire, if cash value and premiums fall below a specific threshold.

The Best Life Insurance Companies for when you're over 50

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.

Factors influencing the price of life insurance

The price of life insurance increases as you become older. Because of this, experts in life insurance frequently advise clients to purchase coverage in their twenties and thirties. But if you’re in your 50s, there could still be time for you to participate. Just be aware that some types of insurance might no longer be available to you and be ready to pay extra for coverage.
The following are some of the major drivers of insurance costs:

senior grandmother looking for life insurance

Your age

Life expectancy has an understandable impact on the price of life insurance, which is why premiums for applicants over the age of 50 might increase dramatically. As you get older, life insurance firms face a higher payment risk; but, when you buy when you're younger, even guaranteed-payout permanent life insurance policies cost less because you have more time to contribute to the policy.

55 year old woman buying life insurance

Your Health

In general, younger people are in better health. Health often declines with age, which increases the likelihood that the life insurance company may have to make a payout under your policy. Smoking and other dangerous habits affect the price of life insurance as well.

policy documents for someone over 50 life insurance

Policy type and duration

Term life insurance, which offers short-term protection, is frequently less expensive than a permanent policy. Additionally, shorter-term insurance policies are often less expensive than longer-term ones, but you can anticipate a premium price hike each renewal. In any case, a 30-year term life insurance policy will typically cost more than a 10-year term policy if you are over 50.

Why life insurance may be necessary after the age of 50?

Varied forms of life insurance policies might offer different levels of protection to individuals whose finances you will leave behind. There are various reasons to think about purchasing life insurance after the age of 50, depending on your circumstances and requirements.

Protecting the family from loss

People are having children later in life, and many people in their 50s still have children at home. Life insurance can assist cover lost income, safeguarding your family from losing their house, paying for your children’s college education, and freeing up your spouse’s time to take care of your family’s needs while they are away from work. Term life insurance will typically be the most cost-effective choice for receiving the death benefit required to help ensure your family is taken care of once you reach the age of 50.

Covering final expenses 

These insurance plans are only intended to pay for funeral and death-related expenses. They often don’t ask health-related questions or require a medical test, and their modest benefit amount makes them inexpensive, even for those in their 60s and 70s. Funeral expenses frequently exceed $10,000, and there may also be post-mortem expenses for last medical care and/or hospice care. A final expenditure policy can assist in relieving your family of these costs, but it won’t assist in reimbursing your dependents for lost wages.

Protect your business

Having a business continuity plan in place can be essential if you own or are a partner in a company to guarantee that the latter is taken care of. The cost of purchasing a deceased owner’s interests can be covered by whole life insurance, which can also shield the company from losing a vital employee’s services, knowledge, and abilities.

Four important areas of company planning can be assisted by life insurance:

– the financing of stock redemption schemes and buy-sell agreements

– supplementary retirement schemes’ financial support

– Key individual compensation

– Loan and mortgage repayment

Replacement for a pension

Getting life insurance protection can assist in meeting your spouse’s ongoing financial demands if your pension is terminated when you pass away. Term life insurance, on the other hand, is normally not recommended for this use because your spouse won’t be protected if you live past the policy’s expiration date.

Estate preparation

You can assist on taxes and leave your heirs a legacy that reflects your priorities by making arrangements for the orderly transfer of your property after your passing.

Permanent life, whether full or universal, can be essential by providing:

– Cash flow to assist in paying estate and inheritance taxes
– assets that can support a surviving spouse and children with their income
– equalization of inheritance among heirs
– funding for kids with special needs

Your assests may be eroded by estate tax obligations. In the absence of a strategy (such as utilizing life insurance proceeds to pay the taxes), survivors may be forced to sell off other assets, such as retirement funds or priceless family heirlooms, in order to raise the necessary funds. And regrettably, when such assets are sold in this way, the price is sometimes far below market value.

A trust with a charitable remainder

When you sell a successful business or investment portfolio for retirement income, there may be significant capital gains taxes due. At the same time, you might want to back philanthropic organizations that share your values. This is where whole life insurance can help.

These two dissimilar requirements can be combined with a charitable residual trust in a plan that serves to provide:

– lifetime earnings

– a donation to a charity Potentially avoiding capital gains tax

– prospective tax deductions

By doing this, you may be able to fulfil your charitable intentions while still leaving a lasting legacy for your heirs.

Retirement fund saving

As already indicated, permanent life insurance policies provide tax-favoured cash value that can be used to supplement retirement funds. An approach to diversify your portfolio for someone who is getting close to retirement is to include permanent life as a supplement to your retirement.

How do you select the best life insurance policy?

The above examples show that no one policy is appropriate for all situations. People differ in their need for coverage, financial capabilities, levels of health, and objectives. There are specialized types of coverage available, and in some circumstances, getting two insurance may make sense:

You likely want a high degree of protection but not exorbitant life insurance premiums if you still have children living at home. Therefore, you might want to think about purchasing two policies: a less expensive term life insurance policy to give additional coverage until your children graduate from high school, and a smaller permanent policy to cover your spouse’s needs for the remainder of your life.

You might not need as much coverage if your kids are grown and living elsewhere, and you might not even be sure how long you need it for. Therefore, take into account purchasing a shorter-term policy with a conversion rider that enables you to switch to permanent coverage up until the conclusion of the policy term (if wanted). With conversion, there are no medical tests or health inquiries; instead, you pay rates based on your health status at the time you first took out the policy, which can help you save money compared to the cost of having permanent coverage when you are older.

There are still methods to obtain coverage if you have health problems. “Simplified issue” policies may ask about your health but may not demand a physical. Policies that are “guaranteed issue” don’t demand a physical or health records. Just keep in mind that “medically underwritten” policy that necessitates a medical exam will cost more money to provide the same amount of coverage.

After the age of 50, applicants for life insurance frequently have special demands that can be complicated. It’s a good idea to discuss the situation with someone who can assist you in making a decision. A financial expert can assist you in deciding if term life insurance or long-term care insurance is right for your circumstances and how a policy can be customized to meet your needs. Guardian can put you in touch with a financial representative who can assist you if you need assistance locating such a person.