What’s the Best Life Insurance for Seniors in Canada?
See affordable life insurance quotes from PolicyMe and other top companies.
The best life insurance for Canadian seniors is:
- Term life insurance (for lightweight, flexible coverage)
- Whole life insurance (for complex estate planning)
- No medical or guaranteed life insurance (if you’ve been denied coverage)
Find affordable life insurance in your golden years on PolicyMe.
What is senior life insurance?
“Senior life insurance” refers to any life insurance policy accepting applicants over the age of 50.
Compared to applicants in their 20s, life insurance premiums for seniors can be over 4 times more expensive due to a higher risk of health issues. But with a reputable insurance company and a little research, you can secure your legacy at an affordable price.
Senior life insurance policies give shoppers over the age of 50 a variety of options for bequeathing an inheritance, donating to charity, splitting an estate, and more.
When is senior life insurance worth it?
Life insurance is worth considering if you’re planning to leave behind:
- Replacement income for a spouse or dependent
- Funds to pay off significant debts (such as a mortgage or auto loan) or estate taxes
- An inheritance made of non-cash assets (such as real estate or locked-in investments) that may require some cash to make an even split
- A charitable donation to a cause near and dear to your heart.
- A trust to support a lifelong dependent, such as a child with special needs
- Final expenses to cover medical costs, burial costs and the cost of settling your estate
Best of all, life insurance isn't usually taxable and can provide substantial support to your beneficiaries after you pass.
Worried about funeral costs? Read up on funeral or final expense insurance created especially for last rites.
What is the maximum age for life insurance coverage in Canada?
Most insurers set the maximum issue age (the age of the oldest applicant they’re willing to insure) is usually between 70-75 years for term life insurance and up to 90 years for whole life insurance. A life insurance advisor can help you assess your insurance needs and find a provider who’s happy to accommodate you.
What’s the best senior life insurance policy in Canada?
There are 2 types of life insurance available to seniors: term life insurance and whole life insurance. The biggest difference between the two is how long they last and how affordable they are.
Term life insurance for seniors: flexible and affordable
Term life insurance provides coverage for a set period of 10 – 40 years. It pays a lump sum payment if you pass away during your term, but there’s always the risk you could outlive your coverage.
At the end of the term, you can choose to renew your existing policy, let it lapse, convert it to whole life insurance, or sign up for a new term.
Term life insurance is usually the cheapest life insurance for seniors in Canada. The most popular term length is 20 years, but many policies have age restrictions. For example, the cutoff to buy a life insurance policy with a minimum term of 10 years from PolicyMe is 75 years old.
PolicyMe has some of the most affordable term life insurance premiums in Canada and they also prioritize customer satisfaction. Afraid you won't be approved? A customer recently told us in this review:
"I never thought I would ever get insurance at my age, but this company made it amazingly easy and affordable."
Whole life insurance for seniors: best for complex estate planning
Whole life insurance (a type of permanent life insurance) ensures coverage until the end of your life. As long as you continue paying the premiums, there’s no risk you’ll outlive your coverage, but older applicants are likely to pay more.
With a whole life insurance policy, your insurer may set aside a small percentage of your payments every year to create a guaranteed, tax-deferred payout for your beneficiaries. Cash payouts are especially useful for covering estate taxes and equalizing inheritances that include assets such as art, cars, or real estate.
Unfortunately, these forced savings plans seldom gather much interest and add to the cost of your premiums. Plus, there are a lot of rules if you want to access the funds while you’re still alive.
Explore more differences between term and whole life insurance here
Life insurance for seniors: fully-underwritten, simplified, or guaranteed issue?
Term and whole life insurance policies can be fully-underwritten, simplified, or guaranteed issue. If affordability is your main concern, think of them as Plan A, B, and C.
These terms describe the underwriting process, i.e. how thoroughly your insurer assesses your health and level of risk. Without an accurate idea of your health and medical history, insurers tend to assume the worst, and you could end up paying higher premiums for less coverage:
- Fully-underwritten life insurance for seniors usually involves a medical exam and a review of your medical history. Because fully-underwritten policies are often cheapest, it’s best to apply for one first.
- Simplified life insurance is a type of no medical life insurance that doesn’t require a medical exam, just the answers to a few medical questions. Because your insurer knows little about your actual health risks, customers usually end up paying much higher premiums for no medical life insurance for seniors in Canada.
- Guaranteed issue life insurance is another type of no medical life insurance requiring neither a medical exam nor medical questionnaire. These policies accept all applicants regardless of age, health, or medical history, and are often the most expensive products on the Canadian market while offering the least coverage.
Although it requires more effort to apply, a fully-underwritten life insurance policy can offer substantial savings. PolicyMe’s fully-underwritten life insurance for seniors uses an accurate picture of your health to ensure you pay only what you need and no more.
"Apply for a fully underwritten term policy first. Then try simplified issue life insurance.If these options don't work, look into guaranteed issue life insurance as a Plan B." — Erik Heidebrecht, Licensed Life Insurance Advisor
What’s the best life insurance company for seniors?
The best life insurance company depends on your goals and priorities, but in terms of value and quality customer service, you can’t do much better than PolicyMe.
PolicyMe offers fully-underwritten, term life insurance to seniors age 75 and under. Most applicants don’t require a medical exam, but they still enjoy the savings the underwriting process provides.
The close seconds are Desjardins and Industrial Alliance. They’re highly-rated and offer multiple riders, although their premiums are higher.
Best permanent life insurance for seniors
Many permanent life insurance products (such as universal life insurance and participating whole life plans) contain a mandatory cash component. Although presented as an investment, these forced savings plans often underperform and add extra dollars to your premiums.
For the best whole life insurance, we recommend Sun Life, Manulife, and BMO. Their participating life insurance products are competitive and their finances are stable, although their customer reviews could use some work.
Best no medical life insurance for seniors
Simplified, no medical, and guaranteed life insurance lets you skip the medical questions and exam at the cost of increased premiums. We recommend getting a quote for a fully-underwritten plan first, but if you’re rejected, Canada Protection Plan, Assumption Life, and UV Insurance.
Why is Canadian life insurance so expensive for seniors?
Whether you’re a first-time buyer or a retiree, your life insurance rates are determined by your age, coverage, gender, health, and smoking status. For seniors, most of these factors aren’t in their favour:
- Age: The older you are, the higher your risk of illness or injury, and the higher the life insurance premiums for seniors.
- Coverage amount: Selecting a higher amount of coverage means your beneficiaries will receive a larger death benefit when you pass, and your insurer charges accordingly.
- Gender: According to Statistics Canada, women are nearly 9% less likely to die at all ages than men, making them a safer bet to insure.
- Health: Pre-existing conditions and illnesses such as cancer, diabetes, high blood pressure, and heart disease make you riskier. Providers may charge you more for coverage or even deny your application.
- Smoking status: Smokers looking for life insurance are likely to pay high premiums due to the risk smoking poses to their health.
Like we said, we recommend applying for fully-underwritten life insurance to see if you’re eligible for lower rates before turning to alternatives. Canadians living with severe chronic illness may need to turn to high risk life insurance for coverage.
Bottom line: Consider coverage, age, and affordability
Between term life and whole life, full underwriting and no medical, there are lots of life insurance options for seniors in Canada. You can narrow down the choices by asking yourself 3 important questions:
- How much life insurance do I need? Your end-of-life and post-life goals will determine how much coverage you need.
- Term or whole life insurance? If you’re 75-years-old or less, you’re probably eligible for term life insurance. If you’re older, you’ll probably need to apply for a whole life policy.
- Fully-underwritten, no medical, or guaranteed? We recommend applying for the cheapest product (fully-underwritten, term life insurance) before exploring no medical, guaranteed, and/or whole life insurance.
With a little planning, it’s possible to find affordable life insurance to satisfy your debts, cover end-of-life expenses, leave an inheritance, and provide for your loved ones. PolicyMe’s team of licensed insurance advisors can provide even more help explaining and exploring your options.
FAQ: Best life insurance for seniors
You need facts, not fluff. Our goal is to provide you with honest, trustworthy information to help you make informed decisions. While our content is created with insurance experts, it is for educational purposes only and should not be considered definitive professional financial advice.
We recommend seeking the counsel of a licensed financial advisor before making any decisions regarding insurance or personal finance.
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.