The Best Life Insurance If You’re Over 50 (Canada)
See affordable life insurance quotes from PolicyMe and other top companies.
Life insurance options for people over 50
Broadly speaking, there are three main types of life insurance products for seniors in Canada:
- Term life insurance
- Whole life insurance
- No medical life insurance (with term and permanent options)
The right type of life insurance depends on your health, budget, financial goals and how long you need coverage to last. Some people over 50 want affordable protection for a specific period, like covering a mortgage or supporting a spouse through retirement.
Others want lifelong coverage to help cover final expenses, leave money to loved ones, or simplify estate planning. If health concerns make it harder to qualify for traditional coverage, no medical life insurance can provide an alternative.
Here's how term life insurance, whole life insurance and no medical life insurance compare:
Note: No medical life insurance is an umbrella category that includes both simplified issue life insurance (health questions but no medical exam) and guaranteed issue life insurance (no health questions and no medical exam). The trade-off for easier approval is typically higher premiums and lower coverage limits.
Term vs. permanent life insurance after 50
Older adults comparing term to permanent policies can start by understanding that term is usually the best fit for income replacement, debt coverage, and spousal support. Permanent policies can help with legacy planning and estate taxes, but only if they fit your financial situation and you truly need lifelong coverage.
How much does life insurance for ages 50+ cost?
The cost of life insurance in Canada for a 50-year-old is, on average, between $25 and $130 per month for nonsmokers with moderate coverage.
- Shorter terms mean lower life insurance rates
- The higher the coverage, the more you’ll pay
- Women pay less than men for similar coverage
- Smokers pay more than nonsmokers—typically 2–3x as much
Here are sample PolicyMe monthly rates for 10-year and 20-year term life insurance policies for nonsmoking 50-year-olds in Canada:
* Premiums listed are based on publicly available rates for non-smoking applicants of average health, aged 50.
Guaranteed life insurance policies are a type of no medical life insurance. Though premiums are higher, GI policies can help older Canadians get modest permanent coverage, especially if they’ve been denied coverage in the past or have complex health histories and can’t qualify for standard rates.
The rates above reflect fully underwritten term life insurance, which is often the most affordable option for healthy applicants. But not everyone qualifies for traditional coverage.
If you've been declined life insurance before, have a serious health condition, or want coverage without medical exams or health questions, guaranteed issue life insurance may be worth considering. Guaranteed issue policies offer lifelong coverage and guaranteed acceptance for eligible applicants, though premiums are typically higher and coverage amounts are lower than traditional policies.
For Canadians who have struggled to get approved elsewhere, guaranteed issue life insurance can provide a simple way to help cover final expenses and leave money behind for loved ones.
Factors that impact premiums for life insurance over 50
Age is a major factor in determining life insurance premiums whether you’re buying or renewing, but it’s not the only one. Insurance providers will also look at your:
- Age
- Sex at birth
- Pre-existing health conditions
- Lifestyle
- Medical history
What can increase your premium? The higher the insurer’s perceived risk, the more you’ll pay for your policy. Certain factors related to life expectancy signal a higher likelihood of a claim, which drives up your cost. These include:
- Being older or male
- Smoking or frequent alcohol use
- Being overweight
- Having a history of medical issues (personal or family)
What can decrease your premium? Insurers offer lower-risk applicants the best rates, which means you may pay less for coverage if you:
- Are younger or female
- Are in good health
- Don’t smoke or drink
- Maintain a healthy weight and lifestyle
- Have no major pre-existing conditions or family health issues/concerns
Remember: It’s important to be honest with your insurer when applying for coverage. You could forfeit your payout if they discover you’ve lied or omitted the truth, either intentionally or unintentionally.
“When your budget is tight, you can save on your life insurance premiums by shortening the term length or reducing the coverage amount. Consider that if you’re covering something like a mortgage, maintaining the term length is more important since the outstanding balance gets reduced over time. Same applies if you’re looking to leave behind some cash for children in the event of a premature death.” — Emil Daniel, Life Insurance Advisor
Is life insurance worth it if you’re over 50?
Life insurance can be worth it when you’re 50 years or older if someone would face financial hardship after your death, or if you want to leave a legacy behind and have no other way to do so.
If your passing would not create a financial burden for loved ones, you may not need life insurance coverage.
Here are some situations in which life insurance for retirees (or soon-to-be retirees 50 and older) might make sense:
- You have dependents who rely on your income (spouse, kids, aging parents)
- You have a mortgage or other large debts
- You do not have any money set aside for an inheritance or legacy donation
Protecting income or covering a debt? Consider a 5 to 10-year term policy if your loved one would struggle financially if you died tomorrow. Get the benefits of life insurance without the lifelong price tag.
Leaving a legacy? Consider permanent insurance or universal life insurance with a lump sum payout if you have lifelong dependents or estate planning goals. A GI policy may fit if you only need a small payout to cover funeral expenses.
Assess your insurance needs, end-of-life expenses, and financial plan before you make a decision. Premiums rise with age, so if you know you need coverage, today is the cheapest it will ever be.
Who may not need life insurance after age 50?
On the other hand, coverage is probably not necessary if the following apply to you:
- You don’t have any dependents, and your spouse is not reliant on your income
- You don’t have any financial obligations, like a mortgage
- You have plenty of savings to cover final expenses and leave a legacy, if you wish
If you’re on a fixed income and premiums would stretch your budget, life insurance may not be the best choice. While it’s natural to want to leave a tax-free gift to your loved ones, your policy should never come at the expense of your own financial stability or peace of mind.