Term 100
- Fixed premiums that never increase
- Coverage for the rest of your life
- Usually no cash value
- BMO Insurance issues Term 100 up to age 80
Best for estate taxes, a cottage, business succession or a set legacy.
Life insurance · Updated October 2026
Life insurance for seniors in Canada: your options after 60
Coverage is available into your 80s, often without a medical exam. The trick is picking the type that matches your health and your goal.
In short
Seniors in Canada can still buy life insurance, with plans for applicants up to age 85. Healthy seniors pay least with fully underwritten Term 10, term to 80 or Term 100. Simplified issue asks yes/no questions with no exam, and guaranteed issue asks none, typically for $25,000 to $50,000 with a two-year waiting period. As a rough guide, a 65-year-old non-smoker pays about $60 to $80 a month for $25,000.
You are not too old for life insurance
Many Canadians over 60 believe they have missed their chance. They assume that age, or conditions such as diabetes, high blood pressure or even a past heart attack, make them uninsurable. Usually they don't.
Insurers design plans for seniors up to age 85. Whether you want to cover funeral costs, leave a tax-free gift to grandchildren or protect your estate, coverage is available, often without a medical exam.
What changes with age is the menu. Long term plans such as Term 20 and Term 30 are no longer offered at 70, but Term 10, term to 80, Term 100 and whole life still are, and simplified and guaranteed-issue plans cover people whose health rules out regular underwriting.
Common reasons seniors buy
- Final expenses
- Funeral and final bills, so children don't pay
- Legacy
- A tax-free gift to children or grandchildren
- Estate tax
- Tax on a cottage, rental or RRIF at death
- Debt
- A mortgage or line of credit a spouse would inherit
- Equalizing
- Fair shares when one child gets the business or home
Life insurance options for seniors in Canada
From the cheapest per dollar (fully underwritten) to the easiest to get (guaranteed issue).
| Option | Medical | Coverage | How long | Best for |
|---|---|---|---|---|
| Term 10 or term to 80 | Full health questions, sometimes tests | Larger amounts | 10 years, or to age 80; some renew to 85 | A mortgage, a loan, income for a younger spouse |
| Term 100 | Full health questions | Larger amounts | For life, premiums usually stop at 100 | Estate taxes, a guaranteed legacy at the lowest lifelong cost |
| Whole life (par or non-par) | Full health questions | From small amounts up | For life, with cash value | Legacy, estate planning, money you may want to borrow against |
| Simplified issue | Yes/no questions, no exam | Up to $500,000 with some insurers | Term or for life | Seniors with well-controlled health conditions |
| Guaranteed issue | No health questions | Typically $25,000 to $50,000 | For life | Serious health conditions or a past decline |
| Final expense | Simplified or guaranteed | Often $15,000 to $25,000 | For life | The funeral, final bills, a small gift |
Simplified issue
- Simple yes/no health questions
- No medical exam or blood test
- Higher amounts than guaranteed issue
- Examples: Assumption Life Golden Protection, iA Access Life
Best for seniors whose health is reasonably well controlled.
Guaranteed issue
- No medical questions; approval is guaranteed
- Typically $25,000 to $50,000
- Full benefit usually after two years
- Examples: Empire Life Guaranteed Life Protect, iA Access Life
Best for seniors with serious conditions who still want some coverage.
Which option fits you?
Answer three questions for a starting point. Pankaj confirms it against each insurer's rules.
A planning aid, not an offer of insurance. Ages and rules differ by insurer.
How much does senior life insurance cost?
Premiums are often lower than people expect, and on permanent plans they are locked in once the policy is issued.
Example: a 65-year-old non-smoker can get $25,000 of coverage for approximately $60 to $80 a month. A healthy applicant who qualifies for full underwriting pays toward the lower end; guaranteed issue costs more for the same amount.
Rates are based on your age today, so each year you wait the price goes up. What moves the price most:
- Health and underwriting type. Fully underwritten coverage is cheapest. Simplified issue costs more; guaranteed issue costs the most.
- Smoking. Most insurers need 12 months without tobacco or nicotine for non-smoker rates.
- How long you pay. Paying over 10 or 20 years costs more each month than paying for life, but the payments stop. See whole life payment options.
For more sample prices, see whole life insurance cost in Canada.
Why seniors buy final expense insurance
Without insurance, children often pay funeral costs out of their own pockets at an already hard time.
| Cost or benefit | Amount |
|---|---|
| Traditional funeral with full burial, national average (RBC Insurance, 2026) | $7,800 |
| Funeral, average before cemetery costs (Dignity Memorial) | $9,150 |
| CPP death benefit, one-time | $2,500 |
A small policy of $15,000 or $25,000 covers the funeral and final bills, and the benefit is paid tax-free to the person you name. The CPP death benefit can be topped up by another $2,500 only in limited cases, for deaths from January 1, 2025, when no CPP pension was ever paid and there is no eligible surviving spouse.
Leaving a legacy for your grandchildren
Life insurance is a simple way to leave a set, tax-free gift. For example, suppose you want to leave each of four grandchildren $10,000 for university tuition or a first car. A $40,000 whole life policy with the four named as beneficiaries does it.
Because the money goes straight to named beneficiaries, it is paid outside your estate. It doesn't wait for probate and isn't counted in probate fees.
One caution: if a grandchild is under the age of majority, name a trustee to receive and manage the money. Without one, the insurer may not be able to pay a minor directly.
Covering tax on your estate
At death, Canadians are taxed as if they sold everything they own. Capital gains on a cottage or rental become taxable, and RRSPs and RRIFs are added to income in full unless they pass to a spouse.
Term 100 is the usual tool for this: fixed premiums, lifelong coverage and the lowest cost per dollar of permanent insurance. Couples often use joint last-to-die coverage, because the tax usually comes at the second death. See life insurance for estate taxes and Term 100 vs whole life.
Applying in your 60s, 70s or 80s
A few habits save time and avoid claim problems.
- Check your old policies firstAn existing term policy may still be convertible to permanent coverage without a medical, until the deadline in the contract.
- Have your medicines list readyNames, doses and when anything last changed. Questions are about specific time periods, such as the last 2 or 5 years.
- Answer every question honestlyFor the first two years an insurer can review the application and refuse a claim if an answer was wrong.
- Try full underwriting before guaranteed issueIf your conditions are controlled, a regular or simplified plan is usually cheaper and pays in full from day one.
Pankaj compares senior-friendly plans from the insurers he represents, including iA Financial Group, Empire Life, Assumption Life, Wawanesa, BMO Insurance, Equitable Life, Foresters and Co-operators. Have a question about your health history? Call him directly; it's confidential and free.
Questions seniors ask about life insurance
Am I too old to buy life insurance at 70 or 75?
No. Canadian insurers sell life insurance to people in their 70s, and some plans accept applicants up to age 85.
The choice narrows with age. Term 100 and whole life are commonly issued up to age 80, and simplified or guaranteed-issue plans fill the gap for older applicants or people with health problems.
How much does life insurance cost for a 65-year-old?
As a rough guide, a 65-year-old non-smoker can expect about $60 to $80 a month for $25,000 of lifelong coverage.
The price depends on health, sex, smoking and the plan type. Fully underwritten coverage costs less than guaranteed issue for the same amount. Use the quote form for real prices.
Can seniors get life insurance without a medical exam?
Yes. Simplified-issue plans ask yes/no health questions with no exam, and guaranteed-issue plans ask no health questions at all.
Simplified issue usually gives more coverage for the money. Guaranteed issue is for people who can't qualify any other way.
What is the two-year waiting period on guaranteed-issue life insurance?
If you die from natural causes in the first two years, most guaranteed-issue plans refund the premiums instead of paying the full benefit.
Accidental death is usually covered in full from the start. For example, Sun Life's guaranteed plan refunds premiums paid, less fees, for a non-accidental death in the first two years. Check the wording of the plan you buy.
Can I get life insurance with diabetes, high blood pressure or a past heart attack?
Often, yes. Well-controlled conditions can still qualify for regular or simplified-issue coverage, sometimes at a higher price.
Insurers look at how long the condition has been stable, your medicines and your test results. If one insurer says no, another may say yes. See life insurance for diabetics.
How much final expense insurance do I need?
Many seniors choose $15,000 or $25,000, enough to cover a funeral and small bills.
Recent national averages for a funeral are around $7,800 to $9,150, before cemetery costs. The CPP death benefit of $2,500 helps but rarely covers it all.
Can I leave life insurance to my grandchildren?
Yes. You can name grandchildren as beneficiaries, and the money is paid to them tax-free, outside your estate.
If a grandchild is still a minor, name a trustee to manage the money until they are an adult. Otherwise the insurer may not be able to pay it out directly.
Should I keep my old term policy or buy a new one?
Check your old policy first. Renewing or converting it may be cheaper and needs no new medical.
Many term policies can be converted to permanent coverage up to a deadline, often between ages 65 and 75, without health questions. Once that date passes, the option is gone.
Written by Pankaj Bhatia, CHS, PFA
Insure In Canada Inc. · Mississauga and Cambridge, Ontario · Licensed in Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick and Nova Scotia
Pankaj often helps people in their 60s and 70s who were told they were too old or too sick to qualify. He checks the full-underwriting and simplified options first, because guaranteed issue costs more and pays less in the first two years.
Call 647-640-2222 · WhatsApp · info@pankajbhatia.ca · About Pankaj
Sources and related pages
Educational information only; it does not replace personal insurance advice. Issue ages, amounts, waiting periods and prices differ by insurer and plan, and the policy contract governs.