Best Life Insurance for Seniors Over 70 in Canada

Do you need life insurance if you’re over 70?

Most people over 70 do not need life insurance. Life insurance is an income replacement product intended to help protect dependents—such as a spouse or kids—who would struggle if you and your income suddenly vanished. If you pass away while your policy is active, your life insurance company will provide your beneficiaries with a tax-free, lump-sum payout called a death benefit.

By your seventies, you’ve likely retired or significantly reduced your work hours, which means you’re no longer relying on employment income. Your mortgage is probably be paid off, your children are financially independent, and your day-to-day financial obligations are minimal.

That said, you may benefit from life insurance coverage if:v

• You still have debts or financial dependents who need financial security
• You have concerns about wealth transfer and estate planning, or you want to leave an inheritance

What life insurance can you get after 70? (Canada)

After age 70, seniors can still get the best life insurance in Canada such as term coverage and permanent coverage — however, options are more limited.

• Approval may depend on medical exams
• Premiums are higher
• Coverage caps are lower
• Term lengths are capped

By age, here’s what seniors can expect with regard to life insurance coverage options in Canada:

• Age 70: Term options between 5 and 15 years, depending on the insurer. Permanent options available. Simplified and guaranteed policies available with moderate coverage.
• Age 75: Term options shrink to 5 to 10 years, and coverage limits drop. Permanent options available but premiums are higher. Simplified and guaranteed policies available for smaller amounts.
• Age 80+: Term insurance rarely offered. Permanent coverage (whole and universal life insurance) limited to smaller face amounts, with the highest premiums. Guaranteed issue policies are the most accessible.

Types of life insurance for seniors over 70

There are two types of life insurance available to seniors over 70: term life insurance and whole life insurance. 

The best senior life insurance is typically term life insurance since it provides affordable coverage for a set period when you may still have financial obligations or dependents. That said, there are a few things to note if you’re interested in term coverage in your seventies:

• Your term will probably be limited to 5–10 years due to your age 
• Premiums will be high if you’re buying a new policy at age 70
• Your family members will only receive a payout if you pass away during the term

You might consider term insurance if you are still financially responsible for children or grandchildren, or if you are still paying off a debt or a mortgage on a house, condo, or cottage.

Whole life insurance is lifelong coverage that lasts until you die.

• Premiums will be extremely high due to your age
• Your coverage will continue as long as you pay your premiums
• Your loved ones will receive a guaranteed payout whenever you pass away

There’s also funeral insurance, which offers a small payout intended to cover end-of-life expenses. Premiums are high and lifelong, so this type of life insurance policy is not usually a good fit for most older Canadians.

“There’s an elephant in the room when it comes to life insurance. Many Canadians seem to believe they need permanent life insurance, but the reality is that permanent life insurance is a very specialized product that only meets the needs of a very small percentage of the population.” —Andrew Ostro, Co-Founder & CEO of PolicyMe

A policy may be fully underwritten, simplified issue, or guaranteed issue life insurance. There are key differences in the approval process and cost.
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• Fully underwritten: Medical questions, paramedical exam, urine and blood tests. You may or may not be approved and premiums are lower. Best for healthy seniors who want higher coverage and lower premiums.
• Simplified issue: Basic medical questions, no medical exam. You may or may not be approved and premiums are higher. Best for seniors with some medical issues who want moderate coverage without a medical exam.
• Guaranteed issue: No medical questions or underwriting at all. This is guaranteed acceptance life insurance with no health questions, but premiums are very high. Best for seniors with a serious medical history or multiple health conditions who have been declined coverage elsewhere.

Renewing an existing term policy?

You can usually skip the medical exam and renew your term coverage with the same company. Your premium will increase due to your age, but you won’t have to answer medical questions (which could bump up your premium significantly).

Best life insurance for seniors over 70

The best life insurance companies in Canada for seniors over 70 are PolicyMe, Manulife, and Empire Life. Here’s a rundown of each one.

All of these life insurance options offer fully underwritten policies. If you’re looking for no-medical life insurance or guaranteed issue policies, start with Empire Life and then try Canada Protection Plan or Seniors Choice.

Let’s take a closer look at term options from these top three companies, since term is best for most seniors in Canada:

1. Term coverage with PolicyMe

2. Family term coverage with Manulife

3. Term coverage (“Solution”) with Empire Life

^{* Disclaimer: We compared each product's yearly costs to the average cost of similar products for the same type of applicant. This figure shows the approximate price difference for a 70-year-old female non-smoker shopping for a 10-year term life insurance policy with $100,000 in coverage.}

How much does life insurance cost if you’re over 70?

People 70+ can buy life insurance in Canada for between $95 and $300 per month, depending on the policy. The cost of life insurance is highly individual and you’ll pay more for simplified and guaranteed issue whole life policies.

Be aware that terms are limited; if you’re 70 years old, you may only be eligible for a term of up to 10 or 15 years.

Here are sample premium payments for nonsmokers with $100,000 in coverage for a 10-year term:

^{* Disclaimer: Table displays the approximate average monthly cost of a 10-year term life insurance policy with $100,000 in coverage.}

Factors that impact premiums for life insurance over 70

Age is a major factor in the cost of life insurance in Canada—but it’s not the only one. Insurance companies consider:

• Age: Older people pay more due to shorter life expectancy
• Sex: People assigned female at birth pay less since they statistically live longer
• Health conditions: Chronic conditions, smoker status, weight, past illnesses, and medications help the insurer assess your risk
• Policy type: Term insurance is cheaper than whole life insurance
• Coverage amount: Higher death benefits mean higher premiums

To get the most affordable coverage, choose the shortest term and lowest coverage amount that aligns with your needs. Shop around and get life insurance quotes from multiple insurers to make sure you’re not overpaying for coverage.

Already have life insurance? Here’s what changes after 70

After age 70, if you have a term policy in Canada, you have three options: renew, reapply, or convert. In any case, your premiums will increase because you’re older.

If you’re over 70 and you still need coverage, then the best options for you are likely to renew or reapply.

If you’re over 70 and you do not need coverage, then you can let your policy expire.

Renew = renew your current new term policy with the same company

• Often cheaper if you have health issues
• Approval can be guaranteed
• Term is usually one year at a time, rolling

Reapply = apply for a new term policy with another company via a new application process

• Often cheaper if you’re still healthy
• Approval is not guaranteed
• Term options are based on age (5 to 15 years, depending on insurer)

Convert = convert a term policy to a permanent policy with no new medical exams

• Only if you need lifelong coverage
• If you have a terminal illness
• Approval is guaranteed
• Premiums are fixed, but high

To figure out how much life insurance you need after 70, carefully calculate your insurance needs against your financial situation. 

The benefits of life insurance go down — and the cost of life insurance products goes way up — when you’re older. Make a life insurance plan that supports your family’s financial planning instead of undermining it.

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Should I renew or reapply?

Rates are always partially based on age, but your health also matters. For seniors, renewal can be good enough if your health has changed, since it avoids medical exams and guarantees you continued coverage. But if you’re still healthy, reapplying could be cheaper since any new medical exams wouldn’t bump up your rates too much. However, reapplying does not guarantee either approval or savings.

FAQ: life insurance for seniors over 70