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Life insurance for seniors in Canada

Life insurance for seniors is an important consideration. As you get older, you start to think about ensuring your finances are in order before you pass. You want to make sure your family and dependants are taken care of financially. You don’t want them to have to worry about how they’ll pay for a funeral, the mortgage or take on other expenses. Senior life insurance is a product that can help you get things in order even if you are over 50. It is never too late to get insurance. Even though you may not have as many options as younger Canadians, you still have many options for buying life insurance when over 50.

Below we will explain life insurance for seniors, discuss how it works, premiums, when to consider it, and answer frequent questions.

What is senior life insurance?

Senior life insurance is a product specifically designed for older Canadians who are over 50 or approaching retirement. It offers similar types of coverage as normal life insurance. The caveat is you typically have fewer options and policies are more expensive.

How does senior life insurance work?

It works in a comparable way to other products. The main difference is you may be limited by some terms and conditions based on your age. You can select from a number of product types including:

Keep in mind that the type of coverage that is best for you depends on your financial goals, lifestyle, and how long you want protection. All these factors will affect how much you pay.

How much does senior life insurance cost?

Costs can range greatly. Your age, health and other factors are used to decide your premiums. A senior in Canada could pay as low as $200 - $300 per year for basic coverage to well over a thousand for more comprehensive protection. Reasonable life insurance for seniors is possible. Generally, you pay more as you get older. For example, a 52-year-old will pay less for a policy than a 64-year-old.

What are the common factors that affect senior life insurance rates?

senior couple hugging outside in at sunset

Life insurance premiums for seniors can range greatly based on these factors:

Age: This is one of the most influential factors. Your premiums will increase as you get older. You’ll save money by taking out a policy earlier. Many products have a maximum enrolment age.
Health: Your health is a key indicator of the level of risk you pose to providers. Pre-existing conditions, chronic conditions, or unhealthy habits and behaviours will all drive up your premiums.
Coverage type: The plan type you choose (term, permanent, whole, no-medical) affects how much you will pay.
Limits: The amount of coverage you want plays a role in how much premiums cost. For example, it will be less for $50,000 than a $100,000 plan limit.
Smoking: If you smoke, you will see a significant increase in your premiums. Some carriers may deny you, especially if you have existing health issues.

How do canadians benefit from senior life insurance?

If you don’t already have a plan in place, this insurance is worth considering if you are 50 and over. There are a lot of benefits, including:

Cover your expenses: It covers existing debts and pays off your mortgage, credit cards, loans, and bills. This ensures these debts are not passed on to your family.
Final expenses: Cover the cost of your funeral and other finance expenses.
Financial support for loved ones: You can provide them with an inheritance that can help dependants financially. For example, your benefit could be used to cover a grandchild’s tuition or boost their savings.
Donations: Supply a charitable gift to a community organization you support.

Waiting to get a plan until you are a senior does have a few disadvantages. There is an increased chance you could be denied. Premiums are more expensive, and you will have less flexibility.

How to get the best life insurance rates for seniors

As with any financial product, you want to get the best rates possible. Here are tips to help you save on life insurance for seniors:

Understand your financial needs: There are a lot of assorted products out there. Not all of them make sense to you. Look at your lifestyle, budget, and needs to narrow down the best type of policy specifically for you.
Shop around and compare the market: Know the options available to you before choosing a product.
Get a policy sooner than later: Your costs will only increase as you age.
Speak with an advisor about your options: Get professional advice and get your questions answered.

Senior life insurance FAQs

Can seniors get life insurance?

Absolutely. There are many types of life insurance products, some specifically designed for seniors and people over 50. Shop around and compare your options to find a plan that fits with your lifestyle and financial goals.

Is life insurance worth it for seniors?

It depends on your financial situation. If you have enough savings and investments to cover the cost of your existing debts, then you may not need a plan. However, most people are not in this situation. This insurance provides you with added financial protection and peace of mind. This makes it worth it for many people.

Why is life insurance important for seniors?

It is important for seniors who have existing debt and financial responsibilities they do not want to pass on to their families when they pass away. Having a plan ensures you don’t burden them.

Can you get inexpensive life insurance for seniors?

Inexpensive is a relative term. Life insurance is a personalized product based on you specifically (age, health, financial needs, etc.) You can find more affordable options by taking out a policy earlier in life and shopping the market to find better rates.

What is the cheapest life insurance for seniors in Canada?

There isn’t one specific plan that is the cheapest. It depends on what you want the insurance for, how long you want the policy, and other factors. You can find the cheapest solution for you by shopping around and comparing quotes.

Does senior life insurance have an age limit?

Yes. There are age limits for life insurance products. Most insurers will not issue policies to seniors over 75. Limits can vary by the insurance company and product type. Speak with your advisor about plans that are ideal for your age range.

What is the best life insurance company for seniors?

Most life insurance companies offer products for seniors, including Manulife, Sun Life, Canada Life, BMO, and Desjardins. But the criteria they use varies. You may be approved by one and not another. So, it’s recommended for you compare quotes from multiple providers to understand your options.

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2024-04-18