Comprehensive Guide to Life Insurance for Seniors in Canada: Tailored Coverage for Those Over 65
Life insurance becomes more important as people age! Many seniors mistakenly believe they are “too old to qualify,” but specialized products exist even for those up to age 90! This guide explores life insurance options, costs by age, and the best choices for seniors, including those in Canada.
Life Insurance Options for Seniors
There are several life insurance options available for seniors:
Term Life Insurance – Provides coverage for a fixed period (e.g., 10 or 20 years). It’s affordable but expires at the end of the term.
Whole Life Insurance – Permanent coverage with a cash value component. It’s more expensive but lasts a lifetime.
Guaranteed Issue Life Insurance – No medical exam required, making it ideal for seniors with health issues. Coverage is limited but ensures approval.
Final Expense Insurance – Designed to cover funeral costs and end-of-life expenses, usually offering coverage between $5,000 and $25,000.
Choosing the right policy depends on financial needs, health status, and budget.
Life Insurance Rates by Age Chart
Life insurance premiums increase with age due to higher health risks. Below is a general estimate of life insurance costs for seniors:
| Age | A $500,000 coverage, 20-year term life policy for nonsmokers | $500,000 coverage whole life policy for nonsmokers |
|---|---|---|
| 40s | $23.5/month - $27.8/month | $488.3/month - $532.25/month |
| 50s | $53.5/month - $68.25/month | $753/month - $839/month |
| 60s | $138/month - $196.42/month | $1219.58/month - $1391.5/month |
| 70s | $666.1/month - $786.3/month | $2135.92/month - $2441.83/month |
No Medical Exam Life Insurance for Seniors
Some seniors prefer no medical exam life insurance to simplify the approval process. Key benefits include:
✅ Guaranteed acceptance (for guaranteed issue policies)
✅ Faster approval, often within days
✅ No risk of being denied due to pre-existing conditions
However, these policies tend to have higher premiums and lower coverage amounts. Popular providers offering no medical exam life insurance include AIG, Mutual of Omaha, and Colonial Penn.
Government Policies and Benefits in Canada
Financial Support Programs:
CPP Death Benefit: A one-time $2,500 CAD payment and a possible top-up of $2,500, requires ≥3 years of CPP contributions;
Provincial Aid: E.g., BC’s SAFE program offers $2,500 funeral assistance for low-income families.
Tax Advantages:
Tax-deferred cash value growth—only taxed when withdrawn beyond premium amounts.
Life Insurance for Seniors in Canada
Improve Your Health: Insurance companies reward non-smokers and those with a healthy BMI. Losing weight and quitting smoking can lower your premiums.
Canada Protection Plan – Specializes in no medical exam policies. For 18 to 80 to apply, including temporary residents with a valid work or study permit. Guaranteed acceptance and ensure coverage without requiring a medical exam or health questions. For seniors aged 61-75, Senior Life Insurance allows the purchase of policies with coverage ranging from a minimum of $5,000 to a maximum of $50,000.
Sun Life – Offers term and whole life options for seniors. Get coverage up to $25,000. Guaranteed life insurance with no medical questions asked. You’re guaranteed to qualify even if you have existing health conditions. Lifelong protection.
CAA Life Insurance – Provides affordable final expense coverage. You can choose coverage between 10 and 30 years and term life insurance coverage from $100K to $5M. Save 10% on insurance rates as a CAA Member and couples save an additional 10% the first year. Cancel at any time, with no fees or penalties.
Manulife - Guaranteed issue life insurance. Easy access to life insurance coverage for residents of Canada. No medical exams or health questions. Coverage from $10,000 to $100,000, in total, for ages 18 to 70. Coverage from $10,000 to $50,000, in total, for ages 71 to 75. Premiums that will not increase. Includes access to the Manulife Vitality rewards program at no added cost (Manulife Vitality Go).
Frequently Asked Questions (FAQ)
1.Can an 80-year-old get life insurance?
Yes! Guaranteed final expense policies (e.g., RBC’s Guaranteed Acceptance) cover up to age 85, with 25k cover age at 200/month.
2.Is coverage possible with a cancer history?
Early-stage remission (5+ years without cancer): Standard policies available with ~30% premium hikes;
Advanced or active treatment: Limited to guaranteed issue plans with waiting periods.
3.Can you cash out life insurance?
Yes, you can cash out a life insurance policy before death if it has accumulated cash value. This can be done through taking out a loan against the policy or by surrendering the policy to access the cash value.
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