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Life Insurance
Best Life Insurance for Seniors: Best Policies and Companies (2022)
June 28, 2022
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7 minutes
Want to know if you can afford life insurance before you go through the trouble of applying for it?
Good news: life insurance is more affordable than you think, though rates vary based on what kind of policy you choose.
The average cost of life insurance per month is between $15-$100 in Canada, according to PolicyMe advisor Erik Heidebrecht, and upwards of $200+ a month if you're in your late 40s+ and/or higher risk.
Read on to learn how much life insurance costs on average in Canada and how that rate changes based on your gender, age, health and other factors.
The average cost of life insurance per month in Canada is about $13 for $100,000 in coverage if you're a healthy 30-year-old requesting a 10-year term life insurance policy with PolicyMe.
If you're a 60-year-old smoker, your premiums will be over $100 per month for the same amount of coverage.
How much life insurance costs in Canada depends largely on how old you are. Generally, the younger and healthier you are, the cheaper your monthly life insurance premiums will be.
If you're of average health for your age and your risk factor is low, your monthly premiums will be lower, too.
Here are all the factors Canadian life insurance companies look at when calculating the cost of your monthly premiums:
Every life insurance company in Canada weighs these factors differently, which is why you can get different rates from different providers.
And unlike other types of insurance, where you live in Canada does not impact how much life insurance will cost you.
How much life insurance costs can also depend on:
The chart below looks at the average cost of term life insurance by age from five leading Canadian life insurance solutions.
Curious to see what your price is? Get an instant quote online from PolicyMe.
A term life insurance policy should cost $38.84 a month on average in Canada for a 40-year-old non-smoking woman with $500,000 in coverage for 20 years.*
The same policy should cost $51.79 a month on average in Canada for a 40-year-old non-smoking man.**
The truth is that monthly life insurance premiums are usually pretty similar in Canada, as long as you're comparing apples to apples.
Meaning: make sure you're comparing prices for the same type of policy.
For example, a whole life insurance policy will be a lot more expensive than a term policy.
Still, your monthly cost will be higher or lower than the average depending on a few factors:
In short, if you're more likely to pass away prematurely, you're more risky to insure and you'll pay more for your term life insurance.
We'll take a closer look at how these factors could affect your price in the next section.
Here's the good news: it's still possible to get a better price on your term life insurance.
PolicyMe happens to have cheaper monthly premiums than other Canadian providers.
Why? Because we're a digital provider with less overhead costs.
Our policies are still properly underwritten (risk assessed) like other major Canadian insurers and we're backed by insurance giant Canadian Premier.
*This number is an average taken from 32 quotes from 22 Canadian life insurance companies using WinQuote. This data is recent as of August 17, 2022.
**This number is an average taken from 33 quotes from 22 Canadian life insurance companies using WinQuote. This data is recent as of August 17, 2022.
The final price for your life insurance policy will depend on additional information that your insurer will collect from you, such as your medical history and lifestyle.
Below, we’ll take a look at average life insurance costs by policy type, age, gender identity, coverage amount, policy length and insurance company.
There are two main types of life insurance policies you can buy in Canada: permanent and term life insurance.
Term life insurance tends to be more affordable than permanent life insurance (also called whole or universal life insurance).
In fact, permanent life insurance policies typically cost 5 to 10 times more than term life insurance in Canada.
Here's our take on term verus perm: life insurance is best used to replace your income if you pass away. It's not necessarily the best way to help you invest your money.
There are many more profitable ways to invest your money other than through a whole life insurance policy.
Investment options like RRSPs and TFSAs will make more money for your loved ones if you pass early.
Check out the chart below to see how investments from whole life insurance pay off versus having term life plus investing in a RRSP and TFSA.
Want to check out how much term life insurance might cost you?
Save up to 20% on the cost of term life insurance with PolicyMe.
Life insurance companies provide rates based on life expectancy and risk. As you age, the likelihood of your insurer having to pay out your policy increases, so your rates will also increase. That’s why it’s always more beneficial to purchase life insurance when you’re young.
The chart below shows how your age influences your monthly life insurance rates.
Generally, the cost of term life insurance will increase every year you get older, so the younger you are, the less your monthly premium will be. Even though term life insurance has a fixed cost per month once you start your coverage, the cost of life insurance substantially increases during your late 40s, so the earlier you start, the better.
The cost of life insurance for children at PolicyMe is free for a coverage amount up to $10,000. Policyholders with children between the ages of 6 months and 18 years old will receive a $10,000 lump-sum payment in the event of their child’s death. It’s free because we’re focused on protecting Canadian families with the coverage they deserve.
If you would like to get more than $10,000 of coverage, life insurance plans are available for children in Canada. Plans work similarly to life insurance for adults and include term life insurance, whole life insurance and a child term rider.
However, for the average Canadian family, we’d recommend against purchasing further coverage until the child is 18 and can have their own policy. Why? There are a few reasons:
A child term rider is a plan that adds a fee to their parent's existing plan and provides coverage until the child is an adult. With PolicyMe, children are covered under their parent's term life insurance policy for free up to $10,000. We make kids' coverage effortless, because we know that parents don’t have time to waste. So this coverage is applied automatically to each new policy.
Individual life insurance allows you and your partner to pick different policy lengths and coverage amounts. It tends to be more expensive but provides flexibility in your policy. At PolicyMe, you can bundle your policy with your partners and receive a discount of 10% off your monthly term life insurance rate in the first year.
There are two main types of life insurance for couples: individual and joint life insurance. To learn more, read our blog post on life insurance for couples.
Term life insurance rates for seniors are $240 for a non-smoking, 65 year-old-female with $250,000 of coverage over a 20-year policy with PolicyMe.
For a 65-year-old non-smoking male, it would cost $357 per month for the same policy length and coverage amount with PolicyMe.
As you get older, your circumstances change, and so do your needs for life insurance. Even though we’ve stated the younger you are, the cheaper the life insurance, this does not mean you cannot afford good coverage once you are older.
You may have less debt or require a smaller coverage due to your older age. Even though your monthly rate may rise, a lower policy length and coverage amount can almost offset these costs making your coverage close to the same amount as someone half your age.
Life insurance for seniors can often be used for funeral expenses, paying off any debts, and helping your beneficiaries once you have passed. At PolicyMe, term life insurance can only be purchased when you are about 65. At 70, you may only get a 10 or 15-year term, while at 75 you are only eligible for 10 years of coverage.
Whether you need to start new coverage or renew your previous term life insurance, it is never too late to get the coverage you need.
Your gender identity plays a small but important role, too.
According to a study by Harvard Medical School, women statistically live longer than men. Because of this, women pay less for their life insurance premiums.
Usually, typical policies are based on your self-identified gender instead of your gender at birth. There’s currently no established protocol on gender for transgender applicants.
The following table illustrates how monthly insurance premiums vary by gender.
The amount that would be paid to your beneficiaries is known as your policy’s face value or death benefit. The more coverage you have, the more you’ll pay in premiums.
The most common coverage amount is $500,000, but not everyone needs the “Cadillac” of insurance.
You should have the right amount to provide for your loved ones if you pass away. However, even if funds are tight, providing your family with a small policy is better than nothing at all.
Here's how life insurance rates vary as the coverage amount increases:
Term life insurance policies are typically available for a 10-, 20- or 30-year period. The shorter the policy length, the more affordable the life insurance.
When you renew at the end of your term, the cost of your annual premiums may increase.
The following chart details how policy length can affect the monthly cost of life insurance.
Besides your age, gender identity and policy details, your lifestyle and health history can also determine the cost of your insurance.
If you’re a smoker, your premiums will increase significantly, costing you double or triple a non-smoker’s rate. The same goes for if you have a dangerous occupation (such as a driver, roofer or miner) or take part in higher-risk hobbies, like skydiving or scuba diving.
This would leave your beneficiaries without the ability to make a claim and receive your death benefit.
Here are a few good rules of thumb when you're shopping for life insurance:
Recommended reading: reviews of the top life insurance companies in Canada.
Mike and Samantha live in Burlington, Ontario. Like many other millennials, they balance their student loan debt with other financial commitments, including their mortgage.
As they start to think about having a family, they realize the importance of taking out a life insurance policy. They want to ensure that their children will be taken care of financially if something happens to them.
Because he’s both a man and a smoker, Mike’s premiums are quoted as being over double the rate compared to Samantha’s. Even so, the couple was surprised at how affordable life insurance actually is. For a 20-year term, their monthly premiums will be less than their cell phone bill!
*These premiums are based on PolicyMe rates.
They also realize that they likely won’t need the same $500,000 coverage amount upon renewal since they’ll owe less on their mortgage. This should help lower the renewal amount for their new policy term and keep it affordable for their family.
As we said earlier, base prices for term life insurance in Canada are pretty similar between providers.
That doesn't mean you still can't save money. Make sure to call around and use an online rate comparison tool to back up your research.
And keep in mind that the quotes you'll get are estimates only, not the final price.
Some companies also offer discounts for joint applications or free perks like child riders.
PolicyMe has some of the most affordable term life insurance rates in Canada.
We've used technology to streamline the application process and pass on the savings to you, meaning quality coverage at a lower price.
Use our simple online life insurance calculator to find out your estimated monthly cost of life insurance with PolicyMe.
The average cost of life insurance is only $22 per month in Canada. Although many Canadians believe life insurance isn’t affordable, for $500,000 of coverage over 20 years, your premiums are usually cheaper than your typical cell phone bill. For younger people, rates are especially affordable.
A $100,000 life insurance policy will cost about $13 per month on average for a 35-year-old man with a 20-year term life insurance policy.
The cost of life insurance in British Columbia is about $22 per month on average. The same as any other province or territory in Canada.
PolicyMe provides life insurance in Alberta, Ontario, B.C. and 8 other provinces and territories. Using our life insurance calculator can provide you with a monthly price for life insurance anywhere we offer our services.
Some life insurance companies, like PolicyMe, offer instant approval.
We don’t require a medical exam for most applicants. If we do request a medical exam, you will find out instantly. And the time you wait for insurance is only weeks, not months.
Read more about no medical life insurance.
An average 30-year-old man and woman will pay $18 per month and $15 per month respectively for a $250,000 20-year term life insurance policy.
A million-dollar term life insurance policy will cost $82 for a 30-year-old, non-smoking male with 20 years of coverage at PolicyMe. For a 30-year-old non-smoking female with a 20-year policy length, the cost per month is about $60 at PolicyMe. Recommended reading: what is life insurance?
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