Life Insurance for Seniors Over 70 in Canada is a Topic We SHOULD be Talking About!
Life insurance for seniors over 70 in Canada, a topic that needs to be addressed as people are living longer and more fulfilled lives!
Ok, let’s get real here. Your 70th birthday ain’t what it used to be. In my youth, people in their 70’s were often in poor health and thinking about final expenses.
It’s a very different story today, we see healthy, fit 70 somethings everywhere! In fact, in my gym, there is an awesome lady with vibrant blue hair that can run longer distances than most people in their 30’s.
Gotta love it!
People in their 70’s are often still working and taking on responsibilities. So how does life insurance for seniors in Canada fit into the equation in 2019!?
One of the things in common about the world’s longest-lived people is that they have a strong sense of purpose as they grow older. Much of this is because of the role of elders in traditional culture. Unlike in the United States, older people are respected and looked up to for wisdom and advice. We have a challenge in this regard. Your job is to find a way to feel a strong sense of purpose in your life, despite the messages our culture sends about aging.
Why Should You Listen to Me Anyway?
So before we get started why should you listen to me anyway? Because life insurance is my day gig!
I founded Policy Architects and am an independent agent serving the needs of Canadians every single day.
From young, old, keen and suspicious. You name it and I’ve worked with and heard it all!
I launched this blog so I could share information with people looking to protect their families. When my wife and I started to look for life insurance there was way too much life insurance lingo to wade through.
My goal is to cut through the confusion to help people find the RIGHT policy at the RIGHT price.
Ok now on with the show!
Life Insurance Over 70 Years Old in Canada:
Why Would Someone Call Policy Architects?
There are so many reasons you should consider life insurance for seniors over 70 in Canada! Here are just a few situations where life insurance is a no brainer in your senior years:
- Final Expenses: This is the most obvious reason. Who wants to leave their family to foot the bill when they pass away. The cost of a funeral is anywhere between $5K – $20K which is SERIOUS cash. This kind of funeral bill is going to be financially devastating for any child, spouse or family member. Don’t forget when you are gone your loved ones are reponsible.
- Debt & Taxes: When you die your debts and tax obligations simply attach to your estate. Many seniors like to think ahead and purchase a policy to cover these bills.
- Business Responsibilities: Yep it’s very possible you have a business. If you want to expand it, maybe you’re taking on debt to do so. Often a bank requires a life insurance policy as collateral to make sure that the debt is paid if you die.
- Children or Grandchildren with Special Needs: If you have a child with special needs they require help no matter how old you are. Trusts are often set up to protect these dependents with life insurance coverage.
- A Desire to Leave a Gift: Do you have family or a charity you’d like to a leave a gift to? Life insurance is a terrific way to do this.
Life Insurance for Seniors Over 70 in Canada:
What Type of Life Insurance Should You Buy at This Stage?
Permanent life insurance becomes more viable when you’re in your 70’s.
Remember, term life insurance is the type of coverage we recommend for most people most of the time, but this changes as clients age.
One of the draws of term coverage is that it’s VERY affordable and it fills a temporary need for income replacement.
For obvious reasons income replacement becomes less important as you age – also the premiums start to skyrocket the older you get.
This is because life insurance is a business and the older you are the bigger risk they take that your beneficiaries will make a claim. That’s why permanent life insurance is a better fit in your 60’s and 70’s.
Permanent life insurance offers coverage until the day you die and a typically a cash value component. So if you are looking to leave a nest egg for someone, pay for final expenses, take care of dependents with special needs after your death…you need something that’s going to pay out no matter what.
Permanent guaranteed life insurance for seniors in Canada is the solution.
There are two different types of permanent life insurance: Whole life and universal life. Also, there are 2 options in terms of underwriting. You can get traditionally insurance (which requires a medical exam) OR no medical exam life insurance.
Life Insurance for Age 70 and Over:
Traditional Permanent Policies
Yes you can qualify for a traditionally underwritten policy with a medical exam over 70.
The catch? You have to be in pretty good shape. If you’re healthy, not afraid of needles and you have some patience, I highly recommend the medical coverage. It’s cheaper and generally has better features and guarantees.
But if you have diabetes or another serious medical issue this is not the approach you will take.
BUT DON’T ASSUME you are high risk!
This when you should consult an independent life insurance agent. We go through your history to see if there’s a company that meets your needs.
Ugh – I have diabetes….
Now what? Am I out of luck?
Life Insurance for Age 70 and Over:
Universal Life Insurance
Whole life insurance is definitely the most popular permanent product with seniors. However, guaranteed Universal Life Insurance is another tool that shouldn’t be overlooked.
This is because it gives you coverage until the day you die at an affordable price point. It’s also flexible.
….but beware, this type of coverage typically DOES NOT build cash value (although this is not always the case). So, in essence, it acts like term without the temporary nature of that type of policy. With a guaranteed Universal life coverage, you’re paying ONLY the pure cost of the insurance.
While we can’t stop the clock and prevent ourselves from aging, there’s a lot we can do to improve our chances of leading a longer, healthier life. The good news is, there’s new research shows that the lifestyle choices we make — even well into our 70s and older — remain important for healthy aging, and to how our bodies and minds hold up in the later decades of our life.
No Medical Life Insurance for Seniors
Simplified & Guaranteed Issue Life Insurance
No medical exam life insurance is one of my favourite tools for seniors.
If you have health issues that keep you from qualifying for a traditional policy with a medical examination, all is not lost!
Even though no medical life insurance does NOT require a health exam, it does require answering a number of very specific medical questions. This is a good thing. In fact, the larger number of medical questions you answer, the better and more secure your coverage is.
No medical life insurance plans for seniors are divided into 3 Tiers of eligibility.
TIER 1 - Elite or Immediate
The First Tier is described, depending on the carrier, with words like Immediate and Elite. It’s for consumers who are in good health who may still have mild medical issues. For example, well-managed diabetes, high-blood pressure, cholesterol, etc., just to name a few.
Many seniors with health issues are surprised to find out that they qualify for the Immediate or Elite coverage level.
Don’t assume the worst. It’s important to speak with an independent broker who knows this product niche well.
TIER 2 - Deferred or Modified
The Second Tier is a deferred benefit. These plans are for applicants who have moderate to serious health issues.
Someone who’s had heart or stroke history would be a good example. In fact, If you’ve had bypass surgery and/ or a stent procedure, you’re likely to be assessed at this level.
The great thing about Tier 2? If you’ve had any of these issues more than 24 months ago, it’s still possible you may qualify for Tier 1 coverage, which also happens to be the most affordable.
All Tier 2 programs, regardless of the life insurance company, come with some kind of waiting period. What does this mean? If you start one of these plans, you’re covered for accidental death from day one.
However, you are NOT covered for death by natural causes until 1 or 2 years into the policy, depending on the product or the carrier.
How does it work? If you start one of these plans and god forbid, die of a heart attack 18 months in, your family will receive all the money you paid into the policy plus simple interest. Once you make it past the 2 year mark, you’re loved ones receive the death benefit regardless of the cause of death.
This is the insurance company’s way of mitigating risk with individuals who have moderate health issues.
TIER 3 - Guaranteed Acceptance
The Third Tier is for consumers who have severe health issues like life-threatening cancer or congenital diseases like Alzheimer’s and Dementia. The beauty of this tier? It’s a guaranteed acceptance level which means, no matter how bad your situation is, you cannot be denied coverage.
As you can probably guess, Tier 3 comes with 2 year waiting period across the board. It’s also the most expensive coverage.
Let’s take a look at a few examples of simplified life insurance for seniors over 70 in Canada.
Tier 1 Example
- 70 Year Old
- 180 lbs
- Breast Cancer 12 Years ago
- Diabetes Type 2
- High Blood Pressure
$10,000 of Whole Life For Final Expenses
Estimated Premium: $45.31 per month
Tier 2 Example
- 72 Year Old
- Triple bypass + 2 Stents 4 yrs ago
- Diabetes Type 2 (8 years)
- High Blood Pressure
$10,000 of Deferred Whole Life For Final Expenses
Estimated Premium: $85.02 per month
Tier 3 Example
- 75 Year Old
- Diabetes Type 2
- Vascular Dementia
$10,000 of Guaranteed Issue Final Expenses
Estimated Premium: $85.57 per month
No Exam Life Insurance for Seniors in Canada - Final Word
If you’re a senior thinking about no medical life insurance in your 70’s, It’s very important to seek the advice of an independent broker. There are many nuances between carriers that influence how they underwrite these products.
For example, let’s say you’re someone with well-managed diabetes whose medication has changed in the past 12 months (increase or decrease in dosage, introduction or replacement of medication).
With carrier A, you qualify for Tier 1 coverage. However, with carrier B you only qualify for Tier 2 protection. This means you pay more and your policy also comes with a 2 year waiting period.
Which life insurance company would you like to apply to? Carrier A of course. Are you working with an agent who knows the difference?
Is Life Insurance Worth It for Seniors? It Sure is!
Call Policy Architects Today to Find Out How We Can Help
Life Insurance for Seniors Over 70 in Canada is a topic that I LOVE. As I get older I find myself more interested in estate planning and encourage all of my clients to get started while they’re young and healthy.
….BUT if you are like me and waited until later in life, there are LOTS of options for you that are much more affordable than you think.
A big part of my life insurance business is selling final expense plans.
If you are over 70 and want to take this burden off your loved ones, why not take out a small affordable policy that covers all the expenses of your cremation or funeral.
The monthly premiums are VERY affordable and it’s one of those gifts your loved ones will truly appreciate, as funerals cost anywhere from $5k – $20K depending on your goals.
Looking for life insurance quotes? We’ve got you covered. Life insurance for seniors over 65 is not a pipedream.
But That's Not ALL!
If you have a business, larger estate planning needs or a gift you’d like to leave through a life insurance policy…
….we can help you select the RIGHT type of insurance from the RIGHT company.
Doing your homework saves you a pretty penny. In fact, it can translate into 10’s of thousands of dollars over the course of your term!
Why no give Policy Architects a call today? We work with the best life insurance companies in Canada.