Best Life Insurance for Seniors Over 70 in Canada
See affordable life insurance quotes from PolicyMe and other top companies.
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:
- 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
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.
- 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.
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 Sun 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, try Canada Protection Plan or Seniors Choice.
“Apply for a fully underwritten term policy first. Then try simplified issue life insurance. If these options don't work, look into guaranteed issue life insurance as a Plan B.” —Erik Heidebrecht, Life Insurance Advisor
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:
Here are premiums for the same coverage on a 15-year term.
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.
FAQ: life insurance for seniors over 70
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.