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Life insurance for seniors over 60 in Canada

Affordable life insurance for seniors in Canada can help you stay protected as you head into your golden years.

While it’s common for Canadians in their 60s to either be retired or approaching retirement, there still may be some benefit in investing in a life insurance policy, and affordable life insurance for seniors in Canada does exist. Read our guides below to learn about the best life insurance for seniors over 60 in Canada.

Some typical costs you may wish to think about that may be covered by life insurance for seniors are:

  • Any outstanding debt
  • Estate planning
  • Future medical expenses
  • End-of-life (funeral) costs

Keep scrolling to learn more about life insurance for seniors over 60 years old.

Companies that offer seniors life insurance in Canada

1 - 2 of 2
Name Product Types of Insurance Coverage Range Issue Ages Medical Exam Required Province Availability
PolicyMe Life Insurance
Term Life, Critical Illness
$100,000 - $5,000,000
18 - 75
No
AB, BC, MB, NB, NL, NS, ON, PEI, QC, SK, YT, NT, NU
Get fast and affordable term life insurance. Personalize your policy details and get an estimate price within seconds. No phone call, meeting or paperwork required. Get an instant decision.
PolicyAdvisor
Whole Life, Term Life, Universal, No Medical
$25,000 - $25,000,000
18 - 75
No
AB, BC, MB, ON
PolicyAdvisor is a digital life insurance brokerage that has partnerships with 20 insurers in Canada.
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Seniors holding hands at the beach

Why should I consider life insurance over 60?

Your mortgage may be paid off and your kids have likely grown up and left home, so the financial security that life insurance offers may not seem as crucial as it did once upon a time.

However, seniors life insurance can benefit not only you, but your family most especially. When you have life insurance over 60, you may be able to leave something behind not only for your kids, but for your grandchildren as well. You’ll also be removing any financial stress that can come with burial expenses if you have adequate life insurance coverage.

There are plenty of reasons why you should consider buying life insurance:

  • Provide for your loved ones. Allows you to provide financial support for your loved ones if illness or injury strike, or if you pass away unexpectedly. This means you can help cover medical and rehabilitation costs while your spouse maintains their current standard of living.
  • Cover immediate expenses. Your death could place a significant financial burden on your family, so taking out life insurance cover can help them cope with the cost of your funeral and other immediate expenses.
  • You’re still young. If you’ve just turned 60 or 65, then you shouldn’t think it’s too late to take out a policy — if the average life expectancy of Canadians is anything to go by, you likely have decades in front of you. It’s important to make sure you’re protected in the years to come.
  • Peace of mind. Life insurance gives you the security and peace of mind of knowing that you, your spouse and family will be protected should the worst happen.
  • Pre-existing conditions. If you have an illness or there’s an illness that runs in your family medical history, you my be offered a policy, but with excluded coverage when it comes to that specific ailment.
  • Insurance cost. In general, older people are seen as greater risks to life insurance providers, this means you may be paying significantly higher premiums the later in life you apply.

What if I'm no longer working?

It doesn’t mean you can’t benefit from life insurance. In fact, although you might not have the same financial obligations as you used to, having life insurance in place as you transition into your senior years is extremely important.

What type of life insurance for seniors over 60 is available in Canada?

  • Life insurance. When you die or are diagnosed with a terminal illness, this lump some benefit can be used to help your loved ones pay off debts, manage ongoing expenses, pay for your funeral and maintain their standard of living.
  • Critical illness. A lump sum benefit is paid if you suffer a serious medical condition, such as cancer, heart attack or stroke. This coverage can be bundled with life insurance and can prove especially useful as you get older and are more likely to suffer a serious medical event.
  • Disability. Disability pays a lump sum if you become totally and permanently disabled. This benefit can be used to cover medical and rehabilitation expenses, pay for home modifications and generally help with your everyday living expenses. It can be purchased as standalone cover or bundled with life cover.
  • Burial insurance. Funeral insurance provides a lump sum benefit to help your loved ones cope with their immediate expenses following your death. This can help reduce the financial burden of your death and provide important support at a very difficult time.

Is critical illness insurance a suitable alternative to life insurance for seniors over 60?

While not necessarily an alternative to life insurance for seniors over 60, critical illness insurance can be a useful option either as a standalone policy or coupled with a life insurance policy. Critical illness insurance allows those diagnosed with a serious illness to concentrate on recovery instead worrying about finances. Common critical illness insurance features can include:

  • Access to premium treatment. Some insurers will also provide access to medical specialists, rehabilitation as well as other support services.
  • Coverage for common critical conditions and illnesses. Some policies have coverage for over 30 different illnesses. If you receive a diagnosis, you can begin the claim process immediately.
  • Lump sum payment. A lump sum payment from critical illness insurance can range from $25,000 to to over $2 million (if fully underwritten) depending on the illness and the type of coverage purchased.
  • Wide range of coverage. With higher insurance premiums, the range of covered conditions increases to include things like organ failure, HIV, loss of independent existence or loss of senses.
  • Children can be insured. Some insurers can bundle the critical illness policy with added coverage for kids.

PolicyMe Critical Illness Insurance

Get covered for 44 different conditions with plans from $10K to $1M, for 10 to 30 years. Apply easily online.

Factors that affect life insurance premiums for people over 60

As there are many different aspects to life insurance policies, there are a number of things related to your life and health that largely determine the premiums, such as:

  • Your age
  • Gender
  • Current health status
  • Pre-existing medical conditions
  • Smoking status
  • Premium style policies (graded and level)

How can I save on the cost of life insurance over 60?

  • Improve your health and lifestyle. If you’re a smoker or have some health conditions, it could cost you. However, there are still a lot policies which have competitive life insurance premiums for those who smoke and have health conditions.
  • Take advantage of your gender. Gender also plays an important role in how much you will pay for cover. A 60-year old woman can pay anywhere between 25% and 35% less in premiums than a 60-year old man.
  • Compare. Shopping for life insurance online can let you get quotes in minutes — this will allow you to see which life insurance provider is willing to offer you the most affordable policy that suits your needs.
  • Avoid extras. If you don’t have any life insurance in place, it can be difficult to know where to start. There are many different policies on the market so it’s best to read up and research in order to find what type of coverage makes sense for your individual situation.

How are seniors life insurance premiums paid?

Both level and graded premiums are good options, but of course it depends on each individual situation. It’s important to carefully assess your current financial situation and choose the premium style that you can afford in the short or long run.

These premium payments are calculated on an average over the life of your policy, making the payments fixed and easy to budget around. When compared to graded premiums, they seem to be higher at the beginning of your policy, however, they even out over the long term.
Graded premiums initially cost less and when reevaluated annually, premiums will increase with age. Graded premiums are better for a short-term life insurance policy because near the end of the policy the premiums can get quite expensive.

Bottom line on seniors life insurance in Canada

Just remember that when you have already found the life insurance policy you need, be sure that you understand the limitations of the policy before you affix your signature on the dotted line. If there are some parts that are not clear to you, ask for clarifications so you know what and what not to expect from your life insurance policy. Check out our guide to life insurance to learn more.

Frequently asked questions about life insurance for seniors over 60 in Canada

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