Life insurance for seniors in Canada offers financial protection for older Canadians, generally over 50 years old, especially those living with pre-existing medical conditions that normally would not qualify them for regular insurance.
In this article, I share everything about life insurance for seniors, plans, policies, and how to find the best life insurance plans for seniors in Canada.
What is Life Insurance for Seniors?
Life insurance for Seniors is a type of life insurance plan specifically for seniors or elderly individuals. Life insurance for seniors generally provides comprehensive health coverage, critical illnesses, and more.
Best Life Insurance for Seniors in Canada
As a senior looking for life insurance, you have options to choose from. There are many insurance plans, but some are better than others. Here are the top five Senior Life Insurance Providers in Canada.
1. Sun Life
More than 150 years ago, the Sun Life Company was founded in Canada. Based in Toronto, Sun Life Financial is Canada’s oldest insurance company.
Initially, the company sold insurance but has since evolved into offering wealth solutions and custom health plans for its clients.
In addition to health insurance and life insurance, it also offers wealth management services.
Customers across North America, Asia, and the United Kingdom use the company’s products and services.
Manulife Financial (MFC) is one of Canada’s largest insurance companies and a financial services company.
In its second year on Forbes’ list of the World’s Best Employers, Manulife demonstrated that it builds a culture that supports its mission to help people make better decisions.
Through its subsidiary John Hancock, Manulife operates in Europe, Asia, Canada, and the United States.
Great-West Lifeco is a global financial services holding company with holdings in life, health, and investment services, as well as asset management and reinsurance.
Financial services are provided across Canada by Great-West Lifeco through its six subsidiaries.
The company also offers insurance to people in North America, Europe, and Asia.
4. Canada Life
Canadian Life Insurance Company sometimes referred to as Canada Life, is Manitoba’s largest financial service and an insurance company.
Founded over 170 years ago, the company has a solid and stable financial history.
The company offers various insurance services, including life, critical illness, disability, and health.
With no medical exam and simplified issues, Canada Protection Plan offers a wide range of life insurance products.
The Foresters Financial Company and Canada Protection Plan were approved to merge on Oct. 2, 2020.
You can obtain life and critical illness insurance through more than 25,000 licensed advisors across Canada at no additional cost through Canada Protection Plan.
Benefits of Life Insurance for Seniors in Canada
A life insurance plan for seniors provides many benefits for Canadian seniors. Here are some of the numerous benefits of senior life insurance:
1. Pay for Final Expenses
The final expenses you leave behind for your family at the end of your life can be significant.
However, you can protect them from covering these costs by purchasing a senior’s life insurance policy. This type of insurance will help pay for funeral expenses and other costs that may arise when you die.
2. Contribute to a Cause You Care About
Most people want to leave a lasting impression on the world. You might consider planning a contribution to an organization that is close to your heart.
With a senior life insurance policy, you can ensure your values will be carried on even after you’re gone. By choosing this option, you are helping ensure that vital programs continue long after you are gone.
3. Cover Outstanding Expenses
Having a life insurance policy in place will help prevent family and friends from having to pay for your medical and funeral expenses.
You can also rest easy knowing that your beneficiaries will be financially secure by providing them with the funds to pay off any outstanding debts, like mortgage, rent, or unpaid loans.
4. Help Provide for Loved Ones
It’s wise to think about providing for your loved ones even after you are gone. This is where a life insurance policy can help.
The money provided by a life insurance policy can be a valuable financial resource for your family when you die.
How to Choose The Right Life Insurance for Seniors in Canada
Choosing the right life insurance policy is one of the most important financial decisions you’ll ever make.
Guidelines no longer limit coverage based on specific health issues. So how do you choose the best policy for you?
Here are the things to consider when deciding on the type of life insurance you require:
Step 1: Estimate How Much Insurance You Need
While planning for your financial future, considering your family’s needs, you should consider how much money you will need to care for them.
However, the right amount of life insurance, compared to what you need, depends on many factors, including how much money you have in savings and investments.
That means estimating other debts you might have if you pass away, such as mortgages, student loans, lines of credit and car loans.
Nevertheless, every senior’s insurance needs are going to be different. If you own a large estate, your needs could be different from those of a retiree who receives a steady pension or annuity.
Step 2: Find the Right Insurance Advisor
Finding the right insurance advisor is another crucial step when selecting your senior life insurance. Choose an insurance advisor who specializes in the needs of older people.
Ask friends, relatives, and colleagues for referrals to insurance advisors they have used in the past. You may want to interview more than one person.
Additionally, set up an appointment to discuss your needs. Be prepared to ask your advisor questions about covering you, your spouse or partner, and other dependents.
Step 3: Prepare Answers for Application Questions
You’ll need to answer a few questions to get a life insurance policy for seniors in Canada. You may have to answer questions about your finances, medical history, and lifestyle choices.
Therefore, it is essential to prepare for interview questions upfront, so you’ll have answers ready when you apply for insurance.
With a little thought, your answers can show your strengths and give the insurer good reasons to accept you as a customer.
Factors Affecting Senior Life Insurance Rates in Canada
Understanding what factors affect the cost of life insurance for seniors is essential to finding a policy that fits your budget.
Below are some of the factors affecting senior life insurance rates in Canada:
Age is the most apparent factor that life insurance companies use to determine premium prices.
For example, you’ll be more expensive to insure if you’re over 65 than if you’re over 50. The main reason is that, as you age, your likelihood of dying during your term increases.
The rate you’re going to be offered will vary depending on how old you are when you seek a life insurance policy.
2. Coverage Amount
Your choice of coverage is one of the significant factors in determining your insurance rate.
The coverage amount is how much money the insurance company will pay out after you die.
However, the amount of coverage you purchase will depend on your needs. You’ll pay more if you want more coverage.
Smoking causes poor circulation, which can result in circulatory diseases such as heart disease and stroke.
Life insurance companies will determine that you are at a greater risk of cardiovascular disease than someone who does not smoke.
This can mean that premiums will be higher for smokers than non-smokers when purchasing life insurance.
4. Health / Illness
Health is a very relevant factor affecting life insurance rates. The healthier you are, the cheaper your premium will be.
Life insurance rates are subsequently high for people with chronic illness or unhealthy behaviours.
Therefore, if you have a history of certain illnesses but haven’t been diagnosed in several years, it’s worth looking into.
How to Apply for a Senior Life Insurance Policy?
To apply for senior life insurance in Canada, you need to follow the steps below:
Step 1: Submit Your Application
Having obtained a competitive insurance quote, you’re now eligible to apply for an insurance policy. This process may take weeks.
Different types of businesses and policies require different amounts of time for approval. A medical examination and highly personal details may be required to apply for life insurance.
Step 2. Verify Your Application
An agent will then contact you over the phone to check a few of the details you entered online and ensure the quote you selected is the right one for you.
Afterwards, you will be provided with documents to sign, after which your application will be forwarded to the insurance company.
Step 3. Schedule Your Medical Exam
When an insurance provider requires a medical exam, you will be contacted by a paramedical professional to arrange the appointment.
Nevertheless, some insurance companies do not require medical exams for life insurance coverage.
You only need to provide some information and speak with their representative over the phone. You will be able to get life insurance within three or four days instead of weeks or months when you do this.
Step 4. Complete Your Exam and Wait
To verify the information included in your application, the examiner will perform a formal medical examination.
During the visit, your examiner will measure your blood pressure and draw a blood sample. The sample will be sent to a lab for testing to determine whether you smoke, have high cholesterol and glucose levels, or use drugs.
You may find that the same questions about your health history or tobacco consumption are asked repeatedly. Just be honest in your response.
In Canada, seniors’ life insurance is an excellent option for those looking for coverage beyond their lifetime.
Whether you’re protecting your loved ones or safeguarding your estate, you want to be sure that anything that might happen in the future is covered.
However, choosing the right life insurance policy for seniors in Canada may seem like a daunting task. But it doesn’t have to be.
Fortunately, buying life insurance as a senior in Canada is now easier than ever, with more flexible and affordable options.
So what are you waiting for? Get your life insured today!
How much does life insurance for seniors in Canada cost?
Seniors’ life insurance costs vary according to their circumstances. However, it’s important to remember that every situation is different, and your best choice is to speak to an insurance advisor who is an expert in senior life insurance quotes.
Can you get life insurance if you are 80 years old?
Yes, seniors over 80 can purchase life insurance. However, the only type of policy usually available is the whole life.
Does life insurance get more expensive as you get older?
Premium rates typically increase by 8% to 10% for every year of age. They can be as low as 5% for people in their 40s but as high as 12% for people over 50.
What is the oldest age you can get life insurance?
Some companies set their maximum issue age at 80 or 75, and very few will issue an insurance policy past the age of 85.