Fact CheckedHere’s how to find the best life insurance for seniors in Canada without breaking the bank.
If you’re over 60 and want the most affordable life insurance, you’re in the right place.
Low-cost life insurance for seniors isn’t just a pipe dream.
If you’re searching for the best life insurance for seniors, always use an independent life insurance agent before you sign on.
At Policy Architects, we know how to find you the right policy to fit your unique circumstances. And we can save you thousands of dollars and lots of hassle!
The Best Life Insurance for Seniors Over 60 in Canada
Important Birthdays
Are all 60-year-olds created equally in the eyes of life insurance companies?
I mean, seriously, what’s a birthday here and there?
Well, there are substantial differences in how a life insurance company treats a 60-year-old and a 69-year-old, which makes perfect sense.
Life insurance is all about assessing risk, and your risk of dying grows with every birthday you pass.
“Ever since I turned 60 a few years ago, I’ve been realizing that these standard societal notions of what it means to be old – especially for women – just aren’t applying to me. And most important, that I can craft my later years to be what I want them to be, rather than what anybody else tells me they must be.”
Getting Older? Here Are 7 Ways to do it Right! Erika Andersen, Forbes
This perspective is empowering — but from an insurance company’s standpoint, birthdays matter. A single year can mean higher premiums, stricter underwriting, or fewer product options.
A Year Here and There REALLY Matters in Your 60s When It Comes to Life Insurance
Let’s break it down with a real-world example. Imagine a man and woman in their early 60s applying for coverage. I’ll use RBC Insurance as the benchmark since they’re one of Canada’s most reputable providers.
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Doug (male, age 60, non-smoker, standard health): $250,000, 20-year term → $223.81/month
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Olivia (female, age 60, non-smoker, standard health): Same coverage → $157.66/month
Right away, you can see the difference: Doug pays almost 30–40% more simply because he’s a man. Women live longer on average, and insurers reward that lower risk with lower premiums.
Now, here’s the kicker:
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Every year you wait to apply after 60, premiums typically rise by about 8% annually.
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That means if Doug waits until age 61, his cost for the same policy jumps to roughly $241/month.
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By 62? He’s paying over $260/month.
This compounding effect makes birthdays expensive in your 60s when it comes to life insurance.
👉 Takeaway: If you’re in your early 60s and considering coverage, don’t wait. Applying sooner rather than later could save you thousands of dollars over the life of your policy.
The Best Life Insurance for Seniors Over 60 in Canada Is a Moving Target
Your life insurance needs in your 60s aren’t static — they shift as your lifestyle, family responsibilities, and financial priorities change. What’s right at 60 may not be what you need at 65 or 69.
For example:
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At 65 with young dependents:
Let’s say you had children later in life and still have kids under 18 at home. Even though you’re in your 60s, your situation mirrors that of a younger parent. Your family relies on your income, and you may still have a mortgage. In this case, term life insurance is usually the best fit — it’s more affordable and provides protection while your loved ones depend on you financially. -
At 69 as a grandparent:
Now picture walking into my office at 69. Your kids are grown, and your main concern is leaving something behind for your grandkids or covering final expenses. In this scenario, permanent life insurance is the smarter choice. It guarantees coverage for life and ensures money is there when your family needs it most.
👉 The point is simple: life insurance at 60 is not one-size-fits-all. The “best” policy depends on your age, health, and goals. That’s why it’s so important to work with an independent agent who can assess your unique circumstances and match you with the right product.
The Best Life Insurance for Seniors Over 60 in Canada:
12 Reasons YOU Need Coverage
A lot of people think life insurance in your 60s is just about paying for a funeral. But in reality, life insurance for seniors over 60 in Canada does much more than cover final expenses. Here’s why so many Canadians still take out policies later in life.
Best Life Insurance for Seniors Over 60 in Canada: for Funeral expenses
Funerals in Canada aren’t cheap. On average, they cost between $10,000 and $15,000. Even a simple cremation can run $3,000 to $5,000. Many seniors choose a final expense life insurance policy as an affordable way to protect their families from those costs.
Taxes don’t stop when you do
The CRA always gets its share. When you pass away, your estate could face capital gains taxes, especially if you own a cottage, rental property, or investments. A permanent life insurance policy is one of the best estate planning tools to make sure your heirs inherit assets, not a tax bill. You can learn more about this in our article on cash value life insurance in Canada.
Protecting your business
If you’re still running a business at 60 or beyond, you know how much depends on your daily involvement. A well-structured life insurance policy for business owners can protect your company by covering debts or providing funds to replace your role.
Leaving something for the grandkids
A lot of clients tell me they just want to leave a little something behind. The good news is life insurance payouts in Canada are tax-free, which makes them one of the most effective ways to create a financial legacy for your grandchildren.
Best Life Insurance for Seniors Over 60 in Canada: Replacing income
Plenty of Canadians keep working past 60. If your income supports a spouse, children, or even grandkids, affordable life insurance for seniors in Canada ensures your family won’t struggle financially if you’re no longer around.
Paying off debts
Your mortgage, credit cards, or car loan don’t disappear when you do. Without a plan, those debts could fall on your family. A life insurance policy for seniors over 60 makes sure there’s money to wipe the slate clean.
Collateral for loans
People are living longer, starting new ventures, or even buying second homes later in life. Banks often require collateral before lending, and life insurance for seniors in Canada can provide exactly that.
Caring for a disabled child
If you have an adult child with a disability, a huge concern is how they’ll manage financially when you’re gone. A permanent life insurance policy for seniors can fund a Henson Trust, which provides money for their care without affecting eligibility for government benefits.
Supporting a charity
When evaluating the best life insurance options for seniors over 60 in Canada, it’s important to consider the entire picture. Many Canadians use life insurance as a way to give back. As the Financial Post points out in its piece on charitable legacies, using a policy with a charity as beneficiary can actually create multiple tax benefits. It’s a powerful way to reduce your estate’s tax burden while leaving a lasting legacy.
“Taking out a life insurance policy is not as common, but it is actually one of the best ways to leave a charitable legacy. Using an insurance policy with the charity as a beneficiary can be a quadruple benefit if you qualify. The first benefit is that if it is structured properly, the annual insurance premiums can be considered annual charitable giving, so that you get the tax benefit each year.”
Leaving Money to Charity in Your Will? There’s a Better Way, The Financial Post
Keeping things fair in your estate
Let’s say one child inherits the family business while the others do not. That can create tension. Joint last-to-die life insurance is one solution that helps equalize estates, ensuring all children receive something of value without forcing the sale of assets.
Best Life Insurance for Seniors Over 60 in Canada: Divorce Agreements
“Grey divorce” is on the rise in Canada. Researchers have documented sharp increases in divorce among people over 60, and many settlements require life insurance to protect an ex-spouse financially. In these cases, a senior life insurance policy ensures obligations are met.
“Researchers have documented sharp increases in “grey divorce” rates among boomers…the age group of 60 and older saw the most significant change, nearly doubling over the past 10 years”.
Grey Divorce: Why are more baby boomers ending their marriages when they get older?
Emergency access to funds
Some whole life insurance policies for seniors build cash value over time. You can borrow against that value for emergencies or retirement top-ups. Because these loans aren’t taxable, it’s a smart way to access funds later in life. When you pass away, the death benefit pays off the loan, and the rest goes tax-free to your loved ones.
When SHOULD Seniors Opt For Permanent Life Insurance?
For senior citizens, term insurance will NOT cover you until the day you die…
…or at least this is what your life insurance company is betting on. Most term policies expire at the age of 80 or 85. This means you could pay thousands into one of these policies, and if you live past that age, your policy expires, leaving you with nothing to show for it.
There are valid reasons to use term coverage in your 60s, including income replacement, a divorce agreement, or mortgage protection.
However, when you want to leave money behind to cover final expenses, a gift from the grave, to provide for a disabled child, etc., there is only one option: Permanent Life Insurance!
The Best Life Insurance for Seniors Over 60 in Canada:
A Complicated Topic. Call Us Now!
What Suits You in Your 50s Doesn’t Necessarily Work For You in Your 60s and beyond.
Before selecting the best life insurance for seniors over 60 in Canada, you should contact an independent agent. We will conduct a needs analysis to help you make the best, educated decision for you and your loved ones.
Another perk when looking for life insurance for seniors over 60 in Canada? We also check with the life insurance companies to see which ones may view you more favorably. Sometimes, choosing a no medical policy is less expensive than opting for one with traditional underwriting.
Call Policy Architects today for a free, no-obligation quote. We’ll shop the top Canadian insurers for you and make sure you get the best rate possible.
