For affluent Canadians, life insurance is less about replacing income and more about strategic wealth preservation. It serves as a cornerstone of estate planning, helping manage capital gains taxes, enable tax-efficient wealth transfers, and protect business continuity.

In 2025, the Canadian life insurance market reflects this shift toward permanent and participating solutions. According to LIMRA, new annualized premiums rose 13% year over year in the first quarter, with whole life policies representing 80% of all permanent insurance sales. Wealthy Canadians increasingly view whole life insurance not as basic protection but as a financial instrument for legacy planning and tax optimization.

The most significant tax exposure for high-net-worth families arises from capital gains on death. When a taxpayer dies, most assets are deemed disposed of at fair market value, and half the resulting gain becomes taxable. While the Lifetime Capital Gains Exemption (LCGE) set at $1.25 million per individual in 2025 can shelter qualifying business or farm property, many estates still face large unrealized gains that exceed this limit. Life insurance provides liquidity to pay those taxes without forcing the sale of investments, property, or shares in a family business.

In this guide, we explain why whole life insurance has become a key tool for high-net-worth Canadians in 2025, how much coverage affluent individuals typically require, and how leading insurers structure participating whole life policies to address complex capital gains and estate planning challenges.

Why high-net-worth Canadians need life insurance

Even for wealthy Canadians, life insurance is not just about income replacement, it is a strategic tool for preserving wealth, managing taxes, and ensuring smooth intergenerational transfers. Without proper planning, estates can face substantial capital gains taxes, forcing the sale of investments, real estate, or business interests at inopportune times, reducing the wealth ultimately passed to heirs.

Whole life insurance provides guaranteed liquidity, tax efficiency, and predictable outcomes, making it indispensable in comprehensive wealth planning.

Key reasons high-net-worth Canadians rely on life insurance:

• Immediate estate liquidity and tax mitigation: Capital gains on death are triggered through deemed disposition of most assets. Even with the Lifetime Capital Gains Exemption (LCGE) of $1.25 million per individual in 2025, many estates exceed this limit. Whole life insurance provides cash to pay these taxes, avoiding forced liquidation of core assets and preserving the family’s wealth.
• Business continuity and succession planning: Business owners use life insurance to fund buy-sell agreements, key person protection, and succession plans. The guaranteed death benefit ensures the family or co-owners can retain the business without scrambling for liquidity or selling under distress, protecting decades of value creation.
• Creditor and legal protection: Properly structured whole life policies bypass probate, delivering death benefits directly to named beneficiaries and shielding funds from creditors, lawsuits, or marital disputes. Policy cash value can also remain protected during your lifetime, offering a safe, tax-advantaged accumulation vehicle.
• Predictable, guaranteed outcomes: Unlike term or universal life, whole life insurance guarantees specific death benefits and cash values. This allows precise estate planning and removes reliance on market performance, interest rates, or economic volatility.
• Participating policy flexibility: Participating whole life policies provide dividends that can be used to:
  • Purchase paid-up additions to grow death benefit and cash value
  • Offset premiums, reducing out-of-pocket costs
  • Accumulate at interest, enhancing long-term policy value
  • Receive cash payments for supplemental income

For high-net-worth Canadians, a carefully designed whole life insurance strategy is more than protection—it is a tool to preserve family wealth, optimize tax outcomes, and ensure business and estate continuity.

Why whole life insurance is the preferred choice for high-net-worth Canadians

Understanding how whole life insurance differs from other options highlights why it is the go-to solution for estate planning, wealth preservation, and business succession.

Universal life insurance: Flexible but uncertain

• Adjustable premiums, variable death benefits, and investment-linked cash value
• Cash value growth depends on market performance; downturns can reduce policy value
• Coverage can lapse if premiums are insufficient or investments underperform, creating risk for long-term estate planning
• Requires active management, which can undermine certainty for multi-million-dollar estates or business succession plans

Term life insurance: Temporary protection, permanent risks

• Provides lower-cost coverage for short-term needs like mortgages or income replacement
• Policies expire, potentially leaving estates without liquidity when it matters most
• Renewal at older ages is expensive, and late conversions to permanent insurance are limited and costly

Whole life insurance: Certainty and permanence

• Guarantees a permanent death benefit and predictable cash value growth
• Fixed premiums keep coverage affordable over decades
• Provides reliable liquidity for capital gains taxes, inheritance equalization, and business succession, eliminating the timing and market risks that can undermine term or universal life policies

For high-net-worth Canadians, whole life insurance combines permanence, predictability, and strategic flexibility, making it uniquely suited to preserving wealth across generations.

How much whole life insurance coverage do wealthy Canadians need?

Determining the right amount of whole life insurance coverage requires analyzing your specific estate tax liabilities, business succession needs, wealth equalization goals, and legacy objectives. Unlike income replacement calculations for younger families, high-net-worth coverage focuses on estate liquidity and wealth transfer efficiency.

Estate tax and probate coverage 

Start with calculating your estate’s tax liabilities at death. Capital gains taxes from deemed disposition of investment properties, business interests, and non-registered investments can easily reach 25-35% of appreciated value. Add probate fees that range from 0.4% to 1.5% of estate value depending on your province. For a $10 million estate with $4 million in appreciated assets, total taxes and fees could exceed $1.5 million.

Whole life insurance covering these costs preserves your estate’s core assets for beneficiaries. Without insurance, estates must liquidate holdings to pay taxes, often at unfavorable times or through forced sales that realize below-market value.

Business succession and buy-sell funding

Business owners need coverage reflecting their ownership value and succession plans. Buy-sell agreements typically require coverage equal to each owner’s business interest. If you own 50% of a $10 million business, you need $5 million in coverage so surviving partners can purchase your shares from your estate.

Family business succession often requires even larger coverage. If your business is worth $8 million but only one child is involved in operations, you need additional whole life coverage to provide equivalent inheritance value for other children. This might mean $12-15 million total coverage making it enough for estate taxes, business transition, and fair inheritance distribution.

Wealth equalization and legacy planning

High-net-worth families often have assets that can’t be easily divided. A family cottage, art collection, or investment real estate might go to specific children based on their interests and circumstances. Whole life insurance provides guaranteed funds to equalize these inheritances fairly.

Calculate the value of indivisible assets going to specific heirs, then secure whole life coverage to provide equivalent value to other beneficiaries. This preserves family harmony and honors your intentions for fair treatment without forcing asset sales.

Leading whole life insurance providers for high-net-worth Canadians

High-net-worth Canadians seeking sophisticated whole life insurance for estate planning and wealth preservation typically turn to Canada Life, Desjardins, Manulife, and Sun Life. These insurers are recognized for strong financial strength, decades of consistent dividend performance, flexible premium structures, and expertise in structuring complex estate strategies.

Factors to consider when choosing whole life insurance for high-net-worth Canadians

For high-net-worth Canadians, whole life insurance is a strategic wealth planning tool, not just a protection product. Experts emphasize that selecting the right policy can preserve family wealth, optimize taxes, and ensure business continuity. To make an informed decision, the following factors are critical:

• Underwriting for multi-million-dollar coverage: Leading insurers such as Canada Life, Desjardins, Manulife, and Sun Life maintain specialized underwriting teams capable of evaluating complex financial situations, including business valuations and estate plans. This expertise ensures large policies, often exceeding $5 million, are approved efficiently and appropriately sized for the client’s long-term objectives
• Dividend performance and policy growth: While whole life insurance provides guaranteed cash value and death benefits, participating dividends can significantly enhance wealth accumulation over decades. Evaluating an insurer’s historical dividend scales, participation rates, and financial strength helps high-net-worth Canadians select policies likely to deliver consistent long-term growth
• Creditor and tax protection: Properly structured whole life policies offer protections that conventional assets cannot. Death benefits can bypass probate, shielding funds from creditors, professional liability claims, or marital disputes. Corporate-owned policies can leverage the Capital Dividend Account (CDA) to transfer wealth tax-free to shareholders or heirs, an essential consideration for business owners.
• Flexible policy structures: Life insurance options such as life-pay, limited-pay (5-, 10-, 20-pay), and additional riders for disability or critical illness allow wealthy clients to align premiums with cash flow and estate planning goals, while maintaining guaranteed coverage that will last for decades
• Integration with estate and business planning: Whole life insurance can seamlessly support wills, trusts, and succession strategies, providing liquidity to pay estate taxes, equalize inheritances, and fund business buyouts without requiring the sale of core assets. This ensures that family wealth and businesses are preserved across generations

Single parents in Canada face some of the most challenging financial planning decisions, with life insurance at the top of the list. With 1.84 million single-parent census families and 1.15 million children being raised by single parents, ensuring financial security is a nationwide concern.

Many families remain underinsured or without coverage, not due to neglect, but because parents are balancing mortgage payments, childcare, and daily expenses. Insurance professionals note that the parents who secure adequate coverage are not necessarily the wealthiest, they are the ones who understand that even a modest life insurance policy can protect their children from financial upheaval.

This guide explains what single parents in Canada need to know about life insurance in 2025. From calculating realistic coverage amounts to selecting policies that fit different budgets, our goal at PolicyAdvisor is to help families find protection that works without jargon, or one-size-fits-all solutions.

How to buy life insurance for single parents?

Buying life insurance for single parents in Canada comes down to five strategic decisions: calculating adequate coverage based on your family’s actual needs, choosing the right policy type, timing your application to secure better rates, naming appropriate beneficiaries who can manage funds for minor children, and keeping premiums affordable on a single income. 

These aren’t just administrative steps, each one directly impacts whether your coverage will protect your children’s stability, education, and housing if something happens to you.

Step 1: Calculate how much coverage you need

Getting the coverage amount wrong is probably the costliest mistake single parents make. Too little, and your family faces financial catastrophe. Too much, and you’re paying for protection you don’t need. The key is breaking down your actual financial picture rather than guessing or going with a rule of thumb that doesn’t fit your situation.

Income replacement

Start with the foundation: how many years of income does your family need to replace? A common starting point is multiplying your annual income by 10 to 20 years, but the right number depends on your children’s ages and your specific expenses.

If you’re earning $70,000 annually with toddlers at home, you’re looking at potentially 20 years of income replacement, that’s $1.4 million right there. Got teenagers who’ll be independent in five years? Your calculation looks completely different.

Debts and liabilities

Every dollar you owe is a dollar your family will need to cover without your income. Make a complete list: mortgage balance, car loans, credit card debt, lines of credit, even loans from family you’ve been paying back.  

The mortgage deserves special attention. For most Canadian families, it’s the largest liability by far. If you’re carrying a $300,000 mortgage with 20 years remaining, that needs to factor heavily into your coverage calculation.

Future child expenses

Future expenses for children is where parents often underestimate dramatically. Think beyond just keeping the lights on, what about childcare costs until your kids can stay home alone? Extracurricular activities, sports teams, music lessons that help them thrive? And then there’s post-secondary education.

Canadian university costs have been climbing steadily. Four years of tuition, residence, and living expenses can easily hit $80,000 to $120,000 per child at public universities, more for private institutions or specialized programs. Multiply that by the number of children you have, and the numbers get substantial quickly.

Existing assets

Now for the good news: you probably have some assets that can offset your coverage needs. RRSPs, TFSAs, savings accounts, existing insurance policies through work, all of these count. Remember, this simply allows you to reduce your coverage amount, it doesn’t mean you can go without insurance

If you have existing group benefits through work, factor in that coverage amount. Just don’t rely on it exclusively for the reasons mentioned earlier.

Inflation buffer

Most insurance calculators overlook a key factor: inflation. A dollar today won’t have the same value in 10 or 20 years. By adding a 10% to 20% inflation buffer to your total coverage needs, you can ensure your policy maintains its purchasing power throughout its term.

Step 2: Choose the right type of life insurance

Policy types aren’t one-size-fits-all, despite what some insurance sales materials might suggest. Each serves different needs, budgets, and financial goals. The trick is matching the policy to your actual situation rather than what sounds most impressive or what an agent earns the highest commission selling.

Term life insurance

Term life insurance covers you for a specific term, typically anywhere from 10 to 30 years. Think of it as renting protection for the years you need it most.

Best for: Single parents who need maximum coverage during their children’s dependency years without breaking the bank.

Pros:

• Significantly lower premiums compared to permanent insurance, often 5 to 10 times cheaper for the same coverage amount
• Straightforward coverage with no investment components to manage
• Can be converted to permanent insurance later with many policies
• Easy to understand and compare between insurers

Cons:

• Zero cash value accumulation, you’re paying purely for protection
• Coverage ends when the term expires unless you renew (usually at much higher rates)
• If you outlive your term and still need coverage, getting a new policy at an older age costs substantially more

Read more about the best life insurance companies in Canada 

Whole life insurance

Whole life insurance is permanent protection that lasts your entire lifetime, with premiums that build cash value you can borrow against or withdraw.

Best for: High-income single parents focused on estate planning, leaving a legacy, or those who want coverage that doubles as a savings vehicle.

Pros:

• Lifetime coverage that never expires as long as premiums are paid
• Builds cash value that grows tax-deferred
• Fixed premiums that never increase
• Can provide an inheritance regardless of when you die

Cons:

• Significantly higher premiums so you can expect to pay 5 to 10 times more than comparable term coverage
• Complex policy structures with surrender charges if you cancel early
• Cash value growth is typically modest compared to other investments
• Not the most efficient way to protect young children on a single income

PolicyAdvisor’s recommendation: For single parents in Canada seeking long-term financial security, whole life insurance provides permanent coverage, guaranteed cash value growth, and predictable premiums. It ensures your children and estate are protected for life, and participating dividends can enhance policy value over time. Unlike term insurance, it doesn’t expire, offering peace of mind that your protection will always be in place.

Read more about how term life insurance and whole life insurance differ

Step 3: Apply at the right time

Timing your life insurance application can save thousands of dollars over the life of your policy. Premiums rise with age and health changes.

Apply while you’re young and healthy

Life insurance premiums in Canada rise with age because mortality risk increases over time. Health changes, such as developing high blood pressure, diabetes, or other conditions can significantly increase premiums or limit policy eligibility. Applying early, while you’re young and healthy, helps you secure lower rates and broader coverage options.

Be completely transparent in your application

Full and accurate disclosure of your health and lifestyle is essential when applying for life insurance in Canada. Misrepresentation or omissions can result in claim denials during the policy’s contestability period, leaving your beneficiaries unprotected. Being upfront ensures your policy delivers the intended financial security when it’s needed most.

Enhance your life insurance with valuable riders

Life insurance riders in Canada are optional add-ons that expand your policy’s coverage and flexibility. By selecting the right riders, you can adapt your life insurance to major life events, protect against disability or unforeseen expenses, and ensure your family remains fully covered. Understanding the most useful life insurance riders Canada offers helps you get the maximum value from your policy.

Key riders to consider:

• Guaranteed insurability rider: Increase your coverage at major life events, such as marriage or the birth of a child without a medical exam
• Waiver of premium rider: Keeps your policy active if you become disabled and are unable to pay premiums
• Child term rider: Provides coverage for your children to help cover funeral expenses or other unexpected costs

Step 4: Name the right beneficiaries

Designating the right beneficiaries is a critical step in ensuring your life insurance proceeds are used exactly as you intend. Incorrect or outdated designations can delay payouts, create legal complications, or result in unintended recipients receiving your policy benefits. These guidelines help you structure your beneficiary designations effectively and securely.

Don’t name minor children directly: Minors cannot legally receive life insurance payouts in Canada. If a minor is named as a beneficiary, the funds may be held up in court or managed through a legal guardian process, delaying access when it’s needed most.

Use a trustee or set up a formal trust:

• Informal trustee: A trusted adult, such as a family member or close friend, manages the insurance funds until your children reach the age of majority. This provides guidance and access while keeping the process simple
• Formal trust: A lawyer-drafted trust specifies exactly how and when funds can be used, offering maximum control and protection for your children’s inheritance

Update beneficiaries after major life changes: Life events such as divorce, remarriage, the birth of a child, the death of a beneficiary, or children reaching adulthood can affect your estate plan. Regularly reviewing and updating your beneficiary designations ensures your life insurance proceeds are distributed according to your current wishes.

Step 5: Getting affordable life insurance as single parents

Ensuring your life insurance remains both adequate and sustainable requires a strategic approach. Here’s how single parents in Canada can balance protection with manageable payments:

Compare quotes from multiple insurers: Premiums can vary significantly between providers. Comparing quotes through independent life insurance advisors like our experts at PolicyAdvisor helps you find the best coverage at the most competitive rate

Consider annual payments: Opting for annual premium payments rather than monthly can help save on premiums over the life of the policy

Maintain healthy lifestyle habits: Healthy behaviors can significantly reduce premiums:

• Quit smoking
• Maintain a healthy weight
• Manage chronic conditions effectively

Evaluate riders carefully: Add only riders that provide meaningful value for single parents, such as:

• Waiver of premium: Keeps your policy active if you become disabled
• Guaranteed insurability: Allows future increases in coverage without a medical exam
• Child coverage rider: Provides protection for your children’s unexpected expenses

Best time to buy life insurance by age

The best time to buy life insurance in Canada is between 25 and 35 years old, when premiums are at their lowest and rates can be locked in for 20 to 30 year terms. Every year of delay increases premiums by 4–8% for ages 25–45, but can be as low as 3% or as high as 10% depending on age band and insurer.

In your 20s

• Premiums are at their lowest. A healthy 25-year-old male can secure $500,000 in 20-year term coverage for $25 to $35 per month
• Medical qualification is easier with fewer pre-existing conditions
• Longer coverage periods are available, including 30 to 40 year terms
• Ideal for covering student loans, a new spouse, or early career debt

In your 30s

• Rates remain favorable, though 15 to 25 percent higher than in your 20s
• Perfect timing if starting a family or buying a first home
• Most cost-effective decade to purchase permanent insurance and build cash value
• Critical window before health issues typically arise in your 40s

In your 40s

• Premiums increase 30 to 50 percent compared to your 30s
• Medical underwriting becomes stricter as health conditions emerge
• Conversion options from employer group coverage become important
• Last opportunity for affordable 30-year term policies before age 50

In your 50s and beyond

• Premiums rise sharply. Coverage can cost two to three times more than for a 30-year-old
• Many insurers limit term lengths to 20 years for applicants over 55
• Simplified or guaranteed issue policies may be necessary if health has declined
• Permanent insurance may be more suitable for estate planning than income replacement

For example, a 30-year-old non-smoking male in Ontario purchasing $500,000 in 20-year term coverage pays about $30 per month. Waiting until age 40 increases the cost to $48 per month, a 60 percent increase for a 10-year delay.

Understanding life insurance costs for single parents in Canada

Life insurance premiums in Canada are determined by several factors, including age, gender, health, lifestyle, occupation, coverage amount, and policy type. Knowing the typical costs can help families plan effectively and choose the right policy.

Average cost of term life insurance

Term life insurance is a budget-friendly way to secure financial protection for a fixed period, such as 10, 20, or 30 years. Premiums increase with age or health changes because the risk of payout rises over time.

Average cost of whole life insurance

Whole life insurance, a form of permanent insurance, provides coverage for your entire life. It is generally more expensive than term insurance because it includes a cash value component that grows over time. Participating policies allow policyholders to receive dividends, further increasing costs but also building long-term value.

Common mistakes single parents make with life insurance in Canada

Life insurance is essential for single parents in Canada to protect their children and secure financial stability. However, many make avoidable mistakes that can reduce coverage effectiveness or create complications. Understanding these pitfalls helps ensure your life insurance truly supports your family when it’s needed most.

Key mistakes to avoid:

• Underestimating coverage needs: Failing to purchase sufficient coverage can jeopardize your family’s financial security, including daily expenses, education costs, and outstanding debts
• Relying exclusively on employer group plans: Group coverage is often limited and non-portable, leaving gaps if you change jobs
• Neglecting to update beneficiaries: Outdated beneficiary forms can cause legal disputes and family conflicts
• Delaying your purchase: Waiting increases premiums and the risk of being uninsurable due to age or health changes
• Letting policies lapse: Missed premiums can terminate coverage, and reinstatement is not guaranteed

The best time to buy life insurance is now, especially when you’re young, healthy, and planning for long-term financial stability. In Canada, purchasing whole life coverage in your 20s or early 30s can significantly reduce lifetime premium costs while giving your cash value decades to grow.

Many Canadians postpone buying permanent coverage until a health scare or major milestone forces the decision. However, those who act early benefit from guaranteed lifelong protection, steady cash accumulation, and the flexibility to use policy loans or dividends to support future financial goals.

In this guide, we will take you through the optimal timing for whole life insurance, key life stages that justify permanent coverage, and the factors that affect your long-term costs and eligibility, helping you decide when to secure a policy that grows with you for life.

When should you get life insurance in Canada?

You should get life insurance as soon as someone depends on your income or you have financial obligations that could burden others after your death. For most Canadians, the best time to buy life insurance is in your mid-20s to early 30s, when premiums are lowest and health complications are least likely to affect eligibility.

Key reasons to buy life insurance

• Financial dependents: A spouse, children, elderly parents, or family members with special needs who rely on your income
• Mortgage or major debt: Outstanding balances that could transfer to your spouse or co-signers (spouses are not automatically liable for individual debts, but co-signers are. Joint debts and some provincial rules may create liability)
• Business ownership: Partners or employees who depend on your contribution for the company’s stability
• Loss of group coverage: Leaving an employer that provided life insurance benefits
• Estate planning needs: Wealth transfer goals or covering final expenses such as funeral costs

According to the Canadian Life and Health Insurance Association (CLHIA), 1 in 3 Canadian households would experience financial hardship within a month if a primary income earner died unexpectedly. Waiting for the “perfect moment” often leads to higher premiums or limited coverage options later in life.

Best time to buy life insurance by age

The best time to buy life insurance in Canada is between 25 and 35 years old, when premiums are at their lowest and rates can be locked in for 20 to 30 year terms. Every year of delay increases premiums by 4–8% for ages 25–45, but can be as low as 3% or as high as 10% depending on age band and insurer.

In your 20s

• Premiums are at their lowest. A healthy 25-year-old male can secure $500,000 in 20-year term coverage for $25 to $35 per month
• Medical qualification is easier with fewer pre-existing conditions
• Longer coverage periods are available, including 30 to 40 year terms
• Ideal for covering student loans, a new spouse, or early career debt

In your 30s

• Rates remain favorable, though 15 to 25 percent higher than in your 20s
• Perfect timing if starting a family or buying a first home
• Most cost-effective decade to purchase permanent insurance and build cash value
• Critical window before health issues typically arise in your 40s

In your 40s

• Premiums increase 30 to 50 percent compared to your 30s
• Medical underwriting becomes stricter as health conditions emerge
• Conversion options from employer group coverage become important
• Last opportunity for affordable 30-year term policies before age 50

In your 50s and beyond

• Premiums rise sharply. Coverage can cost two to three times more than for a 30-year-old
• Many insurers limit term lengths to 20 years for applicants over 55
• Simplified or guaranteed issue policies may be necessary if health has declined
• Permanent insurance may be more suitable for estate planning than income replacement

For example, a 30-year-old non-smoking male in Ontario purchasing $500,000 in 20-year term coverage pays about $30 per month. Waiting until age 40 increases the cost to $48 per month, a 60 percent increase for a 10-year delay.

When is the best time to get life insurance during life events?

The best time to get life insurance during life events is immediately before or during the event itself, particularly marriage, buying a home, or expecting a child. Securing coverage before these milestones ensures protection is in place when financial responsibilities increase, rather than scrambling afterward.

Critical life events that require immediate coverage:

• Getting married or common-law: Your partner now depends on your income for shared living expenses, debt payments, and future plans. Dual-income couples should each carry life insurance coverage equal to roughly 7 to 10 times their annual income, a common rule of thumb cited by FP Canada and major banks. While 10 to 12 times is often used as a benchmark, actual needs can vary based on lifestyle, debts, and long-term financial goals.
• Expecting or adopting a child: Purchase coverage during pregnancy or adoption proceedings, not after the child arrives. The sleep deprivation and adjustment period of new parenthood makes insurance shopping difficult. A $500,000 policy ensures your child’s education, childcare costs, and daily expenses are covered if you die prematurely.
• Buying a home: Your mortgage represents potentially decades of debt that shouldn’t fall entirely on your spouse. While mortgage life insurance exists, individual term life insurance offers better value, portability, and flexibility. Purchase coverage equal to your mortgage balance plus 5 to 7 years of living expenses. This is a common guideline, though some financial experts recommend 3 to 10 years depending on your family’s needs.
• Starting a business: Business owners need coverage that protects both personal and commercial obligations. Buy-sell agreements funded by life insurance ensure business continuity if a partner dies. Key person insurance protects the company from financial losses when crucial employees pass away.
• Career advancement: Major salary increases create lifestyle inflation that your family expects to continue. Always update your coverage after major life events and significant raises.
• Divorce or separation: Life insurance often becomes part of custody and support agreements. Courts may require coverage that guarantees child support and spousal support payments continue if you die before obligations end.
• Caring for aging parents: If you’re financially supporting elderly parents or they’ve co-signed loans with you, life insurance prevents their financial hardship if you predecease them.

Things to consider when buying life insurance

Buying life insurance in Canada is one of the most important financial decisions a person can make. The right policy protects your family from financial hardship, covers outstanding debts, and can even support long-term planning goals such as estate planning or education funding.

Before applying, Canadians should carefully evaluate four key factors: how much coverage they need, the type of policy that fits their goals, the term length or permanence of coverage, and how health and lifestyle affect premiums. 

Calculating your coverage amount

Income replacement method: A common approach is to multiply annual gross income by 10 to 12. For example, a $75,000 salary requires $750,000 to $900,000 in coverage to replace income through investment returns of 3 to 4 percent annually.

The DIME formula (Debt, Income, Mortgage, Education)

• Debt: Include all consumer debt such as credit cards, car loans, and personal loans
• Income: Factor in 10 years of gross salary to maintain your family’s lifestyle
• Mortgage: Include the outstanding balance on your home
• Education: Estimate the cost of your children’s post-secondary education, typically $80,000 to $100,000 per child in Canada

Adding these four components provides a minimum recommended coverage amount.

Types of life insurance policies you can choose from

Term life insurance

• Provides coverage for a fixed period, usually 10, 20, or 30 years
• Offers the lowest premiums, ideal for temporary obligations such as mortgage protection or dependent children
• Does not accumulate cash value
• Convertible to permanent insurance without medical underwriting within a set period
• Best suited for the majority of Canadian families focused on affordable protection

Whole life insurance  

• Provides lifetime coverage that never expires
• Builds cash value that can be borrowed against or withdrawn
• Premiums are typically five to ten times higher than term insurance
• Useful for estate planning, final expenses, or wealth transfer strategies
• Consider permanent coverage only after maximizing RRSP and TFSA contributions

Health factors that affect your rates

Your medical history, lifestyle, and family health background determine your premium classification: preferred, standard, or substandard. The common conditions that can increase your life insurance premiums are:

• Diabetes, especially with complications
• Heart disease, previous heart attacks, or cardiac procedures
• Cancer history, often requiring 2 to 5 years cancer-free for standard rates
• High blood pressure or cholesterol requiring medication
• Obesity (BMI over 30 to 32 depending on insurer)
• Sleep apnea requiring CPAP treatment
• Recent hospitalizations for mental health conditions
• Dangerous hobbies such as aviation, scuba diving, or rock climbing
• Tobacco use including smoking, vaping, or nicotine products, which can increase premiums by 150 to 200 percent

Key application considerations

• Apply before health changes: If you anticipate surgery, treatment, or a new diagnosis, apply beforehand. Once diagnosed, even treatable conditions can increase rates
• Timing and planning: While no season is better for applications, completing the process before year-end can help with financial planning. Avoid applying while experiencing an active illness since it may delay underwriting
• Multiple policy strategy: Consider laddering term coverage to reduce costs as obligations decline. For example, $300,000 for 30 years to cover a mortgage and $200,000 for 20 years to cover children until independence

Best time to buy term life insurance

The best time to buy term life insurance is when you have temporary financial obligations that will eventually disappear, typically in your 20s through 40s when you’re raising children, paying a mortgage, or building career momentum. Term insurance offers maximum coverage at minimum cost for time-limited protection needs.

Optimal scenarios for term life insurance:

• Mortgage protection: Align your term length with your mortgage amortization. A 25-year mortgage needs a 25 or 30-year term policy. As you pay down principal, your coverage decreases naturally while premiums stay level.
• Dependent children: Calculate years until your youngest child reaches financial independence (typically age 21-24). A newborn requires 25-30 year coverage; a 10-year-old needs 15-20 years. This ensures income replacement and education funding throughout their dependence period.
• Income replacement during working years: If you’re 35 years old and plan to retire at 65, a 30-year term policy provides protection through your peak earning years when your family depends most on your income.
• Business loan coverage: Business debt with personal guarantees requires term coverage matching the loan period. A 10-year business loan needs a 10 or 15-year term policy protecting partners and lenders.

Selecting the length of your term policy

Choosing the right term length is a key factor in buying life insurance in Canada. The decision impacts both premium costs and how long your family is financially protected. Shorter terms offer lower premiums for temporary obligations, while longer terms provide extended coverage for mortgages, children, or long-term income replacement. Here are the advantages of 10, 20, and 30-year terms to help you match coverage to your financial goals and life stage.

10-year term:

• Lowest premiums for short-term needs
• Ideal for covering temporary debt or business obligations
• Often used as supplemental coverage during peak expense years

20-year term:

• Most popular term length in Canada
• Balances affordability with long-term protection
• Perfect for young families or new homeowners

30-year term:

• Maximum term length for most applicants under 50
• Best value for long-term obligations
• Locks in rates through retirement age for younger buyers

Renewable vs. convertible life insurance: Choose policies with conversion riders allowing you to switch to permanent insurance without medical underwriting. This protects your insurability if health deteriorates before term expiry.

Best time to buy whole life insurance

The best time to buy whole life insurance is when you want lifelong protection and long-term wealth accumulation, ideally in your 20s to 30s when premiums are lowest and cash value growth has decades to compound. Unlike term coverage, whole life insurance never expires, making it ideal for estate planning, generational wealth transfer, and tax-efficient savings.

Key uses of whole life insurance

Estate planning: Whole life insurance ensures your heirs (named beneficiaries) receive a tax-free death benefit to cover final expenses, taxes, or equalize inheritances. The earlier you buy, the more your policy’s cash value can grow, providing liquidity later in life.

Wealth accumulation: Policies accumulate guaranteed cash value and potential dividends over time. Buying early maximizes compounding and creates a low-risk, tax-sheltered asset for future borrowing or retirement income.

Children’s or grandchildren’s insurance: Purchasing whole life for a child locks in their insurability and provides a lifetime of coverage. Premiums are minimal, and the policy can later fund education, a first home, or business startup through policy loans or withdrawals.

High-income earners or business owners: Whole life offers tax-efficient strategies for sheltering corporate retained earnings or supplementing retirement income. Policies can be corporately owned, providing long-term financial stability and estate advantages.

Philanthropic or legacy goals: Whole life insurance allows you to leave a charitable legacy or ensure long-term family financial security through a guaranteed payout, no matter when you pass away.

If you currently hold a term policy, choosing a convertible term plan lets you transition to whole life insurance later without a new medical exam, protecting your insurability. Paid-up additions and limited-pay options can help you grow value faster or finish payments early.

How health changes affect your life insurance timeline

Health changes can significantly influence life insurance costs and eligibility in Canada, which makes applying early an important financial decision. While minor medical diagnoses can raise premiums, serious or chronic conditions may lead to postponed or declined applications. Understanding how insurers assess common health issues helps you secure affordable coverage before risks develop.

Pre-existing conditions and waiting periods

Cardiovascular conditions: Heart attacks, strokes, or cardiac surgeries typically require a one- to five-year waiting period before standard rates are considered. Recent diagnoses can lead to substantial premium increases or table ratings that add 25 to 100 percent to the base cost.

Cancer history: Most insurers require applicants to be cancer-free for two to five years before offering standard rates. The required period depends on the type and stage of cancer. Early-stage cancers in complete remission may qualify sooner, while active or metastatic cases usually result in coverage denial.

Diabetes management: Applicants with Type 2 diabetes and well-controlled blood sugar levels (HbA1c under 7.0 percent) can often qualify for standard or slightly elevated rates. Type 1 diabetes or uncontrolled Type 2 diabetes with complications can increase premiums by 50 to 150 percent.

Mental health conditions: Stable cases of depression or anxiety with consistent treatment and no recent hospitalizations may qualify for standard rates. However, a history of suicide attempts, hospitalizations within the past two years, or multiple psychiatric medications can result in postponement or denial.

BMI and weight considerations: Obesity with a body mass index (BMI) between 30 and 35 can moderately increase premiums. Severe obesity (BMI over 40) may lead to significantly higher rates or coverage denial. A weight reduction of at least 10 percent can qualify you for a rate reconsideration with many insurers.

Things to consider when applying for life insurance in Canada

When planning to apply for life insurance, timing matters. Certain health events or medical procedures can temporarily delay approval or increase premiums, so consider the following before you apply.

• Apply before scheduled surgeries: Even minor elective procedures such as gallbladder removal or hernia repair can delay applications for three to six months after surgery. Completing underwriting before any planned medical procedure helps avoid interruptions.
• Secure coverage before genetic testing: Canadian insurers cannot use genetic test results you do not yet know. However, if you later receive a positive result indicating a hereditary condition, it can influence future underwriting decisions. It is advisable to obtain coverage before undergoing genetic testing if your family history suggests elevated risk.
• Pregnancy considerations: Pregnancy alone does not affect premiums, but applying early in pregnancy is recommended. Complications such as gestational diabetes or preeclampsia can affect eligibility or rates. Post-pregnancy complications may also impact future applications.

Guaranteed issue and simplified policies

If health has declined significantly, guaranteed issue life insurance may be the only option. These policies do not require medical exams or underwriting but provide limited coverage, typically between $10,000 and $50,000, at higher premiums. They are designed primarily for final expense protection when traditional life insurance is no longer available.

Canadian farmers wanting to secure their family’s future and protect their farm should consider life insurance. According to a recent report by Statistics Canada, there are approximately 189,000 farms in Canada that require specific protection strategies, making life insurance crucial for them.

Life insurance for farmers can help pay financial obligations and clear debts if the insured passes away. Life insurance helps the beneficiary manage their expenses without undergoing financial stress.

In this guide, you will learn why Canadian farmers should consider life insurance, including the policy types, cost, and leading insurers.

Why do farmers in Canada need life insurance?

Farmers in Canada require life insurance to protect their loved ones and ensure the continued operation of their farm business, even after the insured passes away. 

Because farming is dependent on weather and market conditions, life insurance is crucial for business continuity. Life insurance ensures that in the event of a tragedy, the farmer’s family can clear their financial debts, address estate settlement needs, and take care of their day-to-day expenses.

Key reasons farmers in Canada require life insurance

Farmers in Canada face unique financial challenges, making life insurance necessary for them to protect their family income, clear debts, plan an estate, and leave behind a legacy for their loved ones.

• Protects family income: Farmers with life insurance can replace income, helping loved ones manage their expenses even if the insured passes away
• Clearing mortgage and other debts: Life insurance helps clear outstanding mortgage and debts, and ensures the family faces no financial burdens
• Maintain farm continuity: Life insurance helps ensure the farm business remains operational by paying employee wages, covering buy-sell agreements, and taking care of day-to-day expenses in case the key person passes away
• Estate planning: Inheriting a farm can be a significant financial burden. Life insurance payouts can be used for clearing capital gain tax from deemed disposition at death and provincial probate fees
• Covers end-of-life expenses: Farmers can obtain life insurance to take care of funeral costs and other expenses, ensuring their loved ones do not face financial burden 
• Supports future needs: Permanent insurance can help save for expenses like children’s education and a spouse’s retirement

What types of life insurance can Canadian farmers get?

Farmers in Canada face different financial challenges when planning their future, from managing business costs to succession planning. As a farmer, you can buy life insurance to protect your family’s future and manage other expenses, ensuring your business stays operational even after you pass away.

Several life insurance plans can be tailored to your financial needs. Term life insurance, whole life insurance, and joint life insurance are available along with other coverage options. Knowing the type of life insurance plans can help you choose the right coverage and make an informed decision.

You can get in touch with our licensed advisors at PolicyAdvisor to compare different life insurance quotes and help you buy suitable coverage. Our advisors are available to clear your queries even after you have purchased a plan.

How much does life insurance cost for farmers? 

Canadian farmers should consider the cost of life insurance before deciding on a plan. The cost of life insurance in Canada depends on factors such as age, policy type, health status, lifestyle, and coverage amount. 

Young, healthy farmers with no health problems will find it easy to buy an affordable life insurance plan. However, premiums rise with age, making it necessary to know the cost of life insurance to make an informed decision.

What influences the cost of life insurance for farmers

Life insurance for farmers is influenced by factors such as age, policy type, health status, coverage amount, and lifestyle choices, such as high-risk activities or smoking.

• Age: Young, healthy farmers may qualify for affordable insurance with lower premiums compared to older individuals, who will pay higher premiums
• Policy type: Term insurance is typically cheaper compared to permanent insurance since coverage is provided for a fixed term and has no cash value. However, buy a suitable plan based on your future requirements and other financial obligations
• Health status: A healthy person will pay lower premiums compared to an individual with a pre-existing condition
• Coverage amount: The coverage amount affects the premium. A higher coverage amount means a higher  premium
• Lifestyle choices: Smokers and those who engage in high-risk activities will pay higher premiums

How can farmers lower insurance costs in Canada?

Farm life insurance premiums don’t need to drain your operating budget. While adequate coverage is non-negotiable for protecting your family and agricultural assets, several proven strategies can significantly reduce your costs without compromising protection.

The most effective approach combines smart policy selection with timing and lifestyle factors that insurance companies reward with better rates.

• Choose term life insurance for primary coverage: Term life usually costs 5 to 10 times less than whole life for the same amount. For most farmers, a 20- or 30-year term policy provides the right protection during peak earning and debt repayment years at a fraction of the cost. Whole life makes sense mainly for estate planning or farm succession strategies where permanent coverage and cash value justify the higher premiums.
• Maintain your health actively: Insurers price policies based on risk, and your health directly impacts rates. Regular checkups, managing chronic conditions, and maintaining a healthy weight can qualify you for preferred rate classes. Farmers with well-controlled health issues like high blood pressure often secure far better premiums than those with unmanaged conditions.
• Quit tobacco use completely: Smoking or tobacco use can double or triple premiums. Most Canadian insurers require 12 months tobacco-free before granting non-smoker rates. A farmer paying $150 per month as a smoker could drop to $50–$75 monthly after quitting, saving $12,000–$18,000 over 20 years.
• Apply while you’re younger: Age is the biggest driver of cost. A 35-year-old farmer pays much less than a 45-year-old for the same coverage. Waiting even a few years can add thousands over the policy term. If you need coverage for farm debt, family protection, or succession, applying sooner locks in lower rates.
• Compare multiple insurance providers: Premiums can vary 30%–40% between insurers, especially for farmers in physically demanding or higher-risk roles. Different insurers rate agricultural work differently, so using an independent broker helps secure the best rates for your farm operation and health profile.

Which are the leading life insurance providers for farmers? 

Several reputable insurers offer life insurance to Canadian farmers. Compare quotes to determine the best coverage option depending on your age, health status, and coverage amount. Knowing the types of plans offered by different insurers can help you make an informed decision and buy a suitable policy.

In Canada, renewal premiums for a 10-year term life insurance policy can rise sharply, often doubling or more, depending on your age and health classification at the time of renewal. According to a 2024 LIMRA report, 31% of Canadians experience life insurance coverage gaps, often because they underestimate renewal costs or delay exploring alternatives.

That’s why it’s important to review whether renewing your existing term policy or applying for a new plan will give you better value and sustained protection. When a term policy renews, insurers recalculate premiums based on your attained age and their current rate schedule. While premiums remain fixed during the initial term, renewal almost always means significantly higher costs.

This guide explains how 10-year term renewals work in Canada, what to expect in terms of cost, and the best strategies to secure affordable coverage going forward.

How does term life insurance renewal work?

Renewing a term life insurance policy in Canada is usually straightforward, but it comes with specific conditions you should understand. Renewal works differently than buying a new policy. Premiums increase, but you don’t have to go through medical underwriting again.

Knowing how premiums are calculated, when renewals happen, and your eligibility can help you decide whether to keep your coverage, shop for a new plan, or convert to permanent insurance.

Key aspects of 10-year term life insurance renewal in Canada

• Automatic renewal clause: Most 10-year term policies include a guaranteed renewal option up to a maximum age (commonly 75–85). This means your coverage continues automatically as long as you pay the premiums. No new medical exam is required, and your current health won’t prevent renewal

• Guaranteed renewal rights: By law and contract, insurers must allow you to renew on the policy’s set renewal schedule until the maximum age stated in your contract. This holds true regardless of any changes in your health, provided premiums are paid on time

• Premium recalculation at attained age: Renewal premiums are based on your attained (current) age and your original risk class (smoker or non-smoker). Because you are older at renewal, premiums can increase sharply, sometimes doubling or more compared to the initial term

• Insurer notification: Canadian insurers typically send renewal notices 30–60 days before your policy expires. We recommend using this period to compare renewal costs against new quotes, consider conversion options, and decide whether to renew or switch

• Maximum renewal age: Most insurers allow renewals until age 75, 80, or 85, after which the coverage ends. Always check your policy’s maximum renewal age so you can plan ahead for future coverage needs

What happens when your 10-year term life insurance expires?

When a 10-year term life insurance policy reaches the end of its term, the coverage does not end immediately — but important changes occur. Understanding these changes can help you decide whether to renew, replace, or convert your coverage.

• Renewal notice: Most Canadian insurers send a renewal or expiry notice 30–60 days before the term ends. This notice outlines your renewal premium and any options available
• Renewal process: If your policy is guaranteed renewable, coverage continues automatically at the insurer’s set renewal rates unless you actively cancel. You do not need a new medical exam, but your premiums are recalculated based on your attained age and can increase significantly
• Lapse option: If you do not pay the renewal premium, the policy will lapse, and coverage will end. Unlike premium payments within a term, there is generally no “grace period” for choosing renewal once the expiry date has passed
• No-medical requirement: Most renewable term policies in Canada allow renewal without additional medical underwriting. This ensures you can maintain coverage even if your health has changed, though premiums may be much higher than buying a new policy if you are still in good health

Guaranteed renewable vs. non-renewable term life insurance

When a term life policy reaches the end of its term, the next steps depend on whether it is guaranteed renewable or non-renewable. Understanding the difference is essential for planning your long-term coverage, since it affects renewal options, premium costs, and your ability to maintain protection if your health changes.

• Guaranteed renewable term life insurance: These policies include a clause that allows you to renew for additional terms (often up to age 75, 80, or 85) without new medical evidence. Premiums are higher at renewal, but this guarantees continued coverage if your health has worsened.

• Non-renewable term life insurance: These policies expire at the end of the initial term with no option to renew. If you still want coverage, you must apply for a new policy and go through underwriting again. Premiums may be lower initially, but there is no protection against future health changes.

What is the cost of term life insurance renewal after 10 years?

Renewing a 10-year term life insurance policy in Canada is often significantly more expensive than your original premium. The renewal cost depends mainly on your age, coverage amount, and health status. Generally, younger policyholders renewing smaller coverage amounts will pay less, while older Canadians face sharply higher premiums.

For instance, a 40-year-old with $500,000 in coverage may see renewal premiums in the range of $1,200 to $1,280 per year, much higher than what they paid during the first term.

If you’re deciding whether to renew or purchase a new policy, it’s important to compare both options carefully. PolicyAdvisor’s licensed advisors can review your age, health, and coverage needs to determine the most cost-effective solution.

The table below illustrates estimated annual renewal premiums for a 10-year term life insurance policy from leading Canadian insurers, Empire Life, Desjardins, and Canada Life, based on coverage amount and renewal age.

Considering renewing your term policy?

Use our tool to instantly calculate your new premium and compare your options.

Renewal vs. new policy: term life insurance costs in Canada

When your 10-year term life insurance ends, you usually face two choices: renew the existing policy or apply for a new one. Renewal premiums are automatically higher because they’re based on your age at renewal and do not require new medical underwriting.

In many cases, however, buying a new term life policy at your current age can be more affordable, especially if your health has not changed. Comparing both options before paying the renewal cost is essential, as choosing a new policy can lead to substantial long-term savings.

What factors affect your term life insurance renewal premium?

Renewing a term life insurance policy in Canada is generally more expensive than purchasing a new policy at your current age. Renewal premiums are influenced by multiple factors, including age, health, coverage amount, and policy type. Understanding these factors can help you make informed decisions about whether to renew your existing policy or consider a new term plan.

While insurers set premiums, provincial regulations, economic conditions, and the company’s claims experience may indirectly influence pricing. Here are the main factors affecting renewal costs:

• Renewal age: Premiums increase with age. The older you are at renewal, the higher the cost of coverage

• Gender: In Canada, females typically pay lower premiums than males due to longer life expectancy, lower mortality rates, and generally lower exposure to high-risk occupations or lifestyles

• Medical status: Health conditions can increase premiums. However, most guaranteed renewable term policies do not require a medical exam at renewal, so changes in health do not prevent renewal, though premiums may still rise due to age

• Smoking status: Smokers are classified as higher-risk, resulting in higher premiums. If you quit smoking, your existing renewable policy usually still charges smoker rates unless you apply for a new policy.

• Coverage amount: Higher coverage amounts lead to higher premiums. Reducing the coverage is one way to lower renewal costs while still maintaining essential protection

• Policy length and type: Longer-term policies and policies with additional riders or benefits cost more than basic term coverage. Choosing the right policy term and optional add-ons can help control premiums

When considering renewal, it is essential to weigh these factors against your current financial needs and health status. Comparing the renewal premium with quotes for a new policy at your current age can sometimes result in significant cost savings, particularly for healthy individuals or those who have quit smoking.

Renewal premium differences: smoker vs. non-smoker

The premium for a smoker is significantly higher because insurers classify them as higher-risk applicants. Smoking increases the likelihood of developing serious health conditions, which raises the insurer’s expected claims cost. Premium calculations also consider other factors such as age, overall health, coverage amount, and policy type, but smoking status remains one of the most influential rating factors.

Top Canadian life insurance providers for renewals in 2025

Selecting the right insurer for your term life insurance renewal in Canada can make a significant difference in both cost and flexibility. Renewal premiums vary widely between providers, so choosing a financially strong insurer with competitive rates and reliable customer service is essential.

Canada’s leading life insurance companies, such as Canada Life, Desjardins, Empire Life, Manulife, RBC Insurance, and Sun Life, offer guaranteed renewable term life insurance policies with different renewal schedules and premium structures. Each insurer has its own approach to pricing, conversion options, and maximum renewal age, which can directly affect your long-term costs.

The table below highlights major Canadian insurers that provide term life insurance renewal options. Reviewing these differences helps you compare coverage features, understand premium increases, and make an informed decision about whether to renew your existing policy or apply for a new one.

Step-by-step guide to renewing term life insurance in Canada

Before your 10-year term life insurance policy expires, you have two main options: renew the existing policy or let it lapse. Renewing your term policy ensures continuous coverage without the need for medical underwriting, though renewal premiums are typically higher than your original rates.

Many reputable Canadian insurers offer guaranteed renewable term life insurance. Understanding the renewal process helps you make an informed decision, maintain coverage, and avoid unnecessary out-of-pocket expenses.

Here is a step-by-step guide to renewing your term life insurance:

1. Watch for your renewal notice: Insurers generally send a reminder 30 to 60 days before the policy expires. This notice provides the renewal premium and outlines your available options

2. Review your existing policy: Evaluate whether your current coverage meets your financial needs. Consider factors such as age, income, outstanding debts, number of dependents, and health status when deciding whether to continue with the policy

3. Compare renewal costs with new policy quotes: If you are in good health, it may be worth comparing the cost of renewing your current policy with obtaining a new term life insurance policy. While renewable term policies do not require new medical underwriting, premiums at renewal can be significantly higher than the original rates

4. Decide whether to renew or purchase a new policy: After reviewing costs and coverage, inform your insurer of your decision to renew or let the policy lapse

5. Consider converting to permanent life insurance: Some term policies include a conversion option, allowing you to switch to a permanent plan without additional medical underwriting. Check with your insurer for eligibility criteria and assess whether conversion better meets your long-term financial goals

6. Update beneficiaries and contact information: Ensure your beneficiary designations and their contact details are current to prevent any issues in the event of a claim

PolicyAdvisor’s experienced advisors can guide you through the renewal process, help you compare options, and answer any policy-related questions. Our team supports you not only during the renewal but also after you have renewed or purchased a new policy, ensuring you make informed decisions every step of the way.

Best alternatives to renewing your term life insurance after 10 years

As your 10-year term life insurance policy approaches expiry, you have the option to renew it or let it lapse. While automatic renewal is convenient, it is often expensive and can put a strain on your budget. Fortunately, there are several alternatives that can maintain coverage while offering more flexibility and affordability.

Convert your existing term policy to permanent coverage

Converting a term life plan to permanent insurance can provide lifetime protection and additional financial benefits. Whole life insurance offers fixed premiums for life and builds cash value, while universal life provides flexible premiums and potential investment growth. Converting your term policy allows you to secure permanent coverage without a new medical exam, though premiums will generally be higher than term rates.

Buy a new term life insurance plan

Purchasing a new term policy at your current age may be more cost-effective than renewing an existing one. You can choose a term length of 10, 20, or 30 years based on your coverage needs. A new term policy can provide more affordable premiums and ensures that your loved ones remain financially protected.

Reduce your coverage amount

Term life insurance premiums are directly tied to coverage amounts. Lowering your coverage can reduce costs while still maintaining essential protection. Consider your outstanding debts, future financial obligations, and family needs when evaluating whether a lower coverage amount is sufficient.

Ladder multiple-term life policies

Laddering involves holding multiple term policies with staggered expiry dates to match your changing financial obligations, such as a mortgage, children’s education, or other life events. This strategy allows you to maintain higher coverage when it is most needed while letting shorter-term or higher-value policies expire as your financial needs decrease

How to decide whether to renew term life insurance?

Deciding whether to renew a term life insurance policy is an important financial decision. While renewal premiums can double or triple compared to your original term, cost is only one factor. Your long-term financial goals, family situation, and health status all play a crucial role in determining the best option.

Assessing your current financial situation and future obligations can help you decide whether to renew your existing term plan or purchase a new policy that better meets your needs. We recommend considering the following factors:

• Review your policy documents: Insurers typically send a renewal notice 30 to 60 days before the policy expires. Reviewing your policy helps you understand coverage, riders, and renewal terms, which is essential before deciding whether to renew or purchase new coverage.

• Evaluate changes in coverage needs: Consider any changes in income, outstanding debts, number of dependents, or long-term financial goals. These factors can determine whether your current coverage amount remains sufficient.

• Compare life insurance quotes: Compare renewal premiums with quotes for a new term life insurance policy. Healthy individuals may find that buying a new policy is more cost-effective than renewing an existing plan at higher rates.

• Consider health status: Health plays a key role in choosing between renewal and a new policy. If you have a pre-existing condition, a no-medical-exam policy may be the better option. Conversely, if you are healthy, a new term plan can offer more affordable premiums.

• Consult an insurance advisor: Licensed advisors at PolicyAdvisor can guide you through the renewal process, evaluate options, and help determine whether renewing your existing term plan or purchasing a new policy aligns with your financial goals and protection needs.

Can I renew my 10-year term life insurance without a medical exam?

Yes, most Canadian insurers offer the automatic renewal option for 10-year term life insurance without a medical exam. Insurance companies recalculate premiums based on your age. Unless you apply for new coverage, you do not have to disclose your health status during the renewal process.

Can I switch insurance companies instead of renewing my current policy?

Yes, you can switch to a new insurer instead of renewing the existing term plan. However, while applying for a new policy from another insurer, you will have to submit a fresh application and undergo a medical examination.

What documentation do I need for term life insurance renewal?

For renewal, you need to evaluate the renewal notice and pay the new premium. If you are reducing coverage or switching to a new plan, fill in a conversion form. Renewing your existing policy doesn’t require a medical examination, unless you buy new coverage. 

Can I partially renew my term life insurance coverage to reduce costs?

Yes, certain plans enable lowering of coverage, and renew the lower amount. You can also partially convert your term plan to a permanent one while keeping the remaining as term plan coverage. This is an effective way of saving and still enjoying protection.

What happens to my term life insurance if I move provinces in Canada?

If you move to another Canadian province, the existing term life policy remains active. Update your banking and address information to ensure the policy service is smooth and convenient. If you buy a new policy after moving to a new province, the replacement options and provincial taxes may differ.

Imagine an insurance policy that not only protects your family, but also quietly builds your wealth. That’s the power of maximizing the cash value growth of a whole life insurance policy.

In today’s uncertain financial landscape, more Canadians are turning to policies that offer more than just a death benefit. According to LIMRA, whole life insurance accounted for 69% of all life insurance premiums in Canada in 2024.

With guaranteed cash value growth, tax-deferred savings, and lifetime coverage, whole life insurance has evolved into a powerful wealth-building tool. In this blog, we’ll explore how to maximize your whole life insurance policy’s cash value and unlock its full financial potential.

What is cash value growth in a whole life insurance policy?

Cash value in a whole life insurance policy acts as a living benefit that grows over time and can provide access to funds while you’re still alive. When you buy a whole life insurance policy in Canada, a portion of your premium goes toward building this cash value.

Unlike term insurance, which offers only a death benefit, whole life insurance includes a savings component that accumulates on a tax-deferred basis.

In Canada, many policyholders use the growing cash value in their whole life policies for tax-efficient estate planning or as a wealth accumulator. Your cash value grows steadily over time, even during market downturns.

The cash value grows in two key ways: through guaranteed returns and non-guaranteed dividends. If you own a participating whole life insurance policy, you may also receive dividends. The insurance company guarantees a minimum dividend rate every year based on its annual performance. 

How can you use the cash value of a whole life insurance policy?

You can access the cash value of your whole life insurance policy in multiple ways, such as policy loans, withdrawals, collateral loans, paid-up additions and more.

• Take a policy loan: You can borrow money from your policy’s cash value without paying taxes on it. The insurance company uses your cash value as collateral for a policy loan 
• Withdraw part of the cash value: You can withdraw a portion of your cash value directly from the policy. Withdrawals are tax-free up to the amount you’ve contributed (your policy’s adjusted cost basis), but any amount above that could be taxed as income
• Use the policy as collateral for a bank loan: You can assign your whole life insurance policy as collateral to secure a third-party loan, such as from a bank or credit union
• Pay future premiums using cash value or dividends: Once your policy has built up enough cash value, you can use it to cover future premium payments
• Buy Paid-Up Additions (PUAs): You can use your dividends or extra contributions to buy paid-up additions, which are small chunks of fully paid life insurance. These PUA increases both your policy’s cash value and its death benefit, compounding your wealth inside the policy over time

Secure peace of mind that lasts a lifetime.
Our tool helps you estimate whole life insurance coverage that builds value while protecting your loved ones.

How can you maximize the cash value of your whole life insurance policy?

If you want to build substantial cash value in your whole life insurance policy, you need a smart policy design. From choosing the right type of participating policy to reinvesting dividends, here are the best ways Canadians can grow their whole life insurance policy’s cash value more efficiently.

Select a participating whole life policy with a strong dividend history

Always choose a participating whole life policy from an insurer with a solid history of paying dividends. Top Canadian insurers like Sun Life, Equitable Life, and Manulife have long-standing dividend performance, which directly impacts your policy’s growth. A strong dividend scale will result in more cash value generation on your whole life insurance policy.

Choose a Wealth Accumulator plan over an Estate Planner policy

Most participating whole life insurance policies in Canada offer two design options: an Estate Planner policy and a Wealth Accumulator policy. Estate Planner policies prioritize long-term death benefit growth, which results in slower early cash value accumulation. 

In contrast, wealth accumulator plans are structured to build higher cash value in the early years, giving you access to your funds sooner. If your goal is to maximize your policy’s living benefits, like tax-efficient borrowing or income planning, a wealth accumulator design is the smarter choice.

Overfund your whole life insurance policy initially

You can boost your policy’s cash value by paying more than the base premium in the early years. This overfunding strategy allows more of your money to go toward the cash value and paid-up additions. Just be sure to stay within the tax limits in Canada to avoid having your policy taxed like an investment.

Reinvest dividends into Paid-Up Additions (PUAs)

If your policy earns dividends, one of the best ways to grow your cash value is by using them to purchase paid-up additions. 

PUAs are mini chunks of permanent life insurance that immediately add to both your cash value and death benefit. The compounding effect of reinvested dividends over time can significantly accelerate your policy’s growth.

Choose a limited-pay whole life insurance policy 

With a limited pay policy, you pay premiums for a fixed number of years (like 10-Pay or 20-Pay), and then the policy is fully paid up. These plans usually cost more upfront but accumulate cash value much faster than lifetime pay options, making them ideal for those looking to maximize value in the shortest time.

Avoid early policy loans 

While policy loans are a tax-efficient way to access funds, borrowing too early can stall your cash value growth. Interest accrues and reduces future dividends and compounding. If your goal is to build maximum value, wait several years before tapping into your cash value.

Work with an experienced insurance advisor

Whole life policies are long-term contracts, and your needs may change. Work with a Canadian life insurance advisor (such as our experts at PolicyAdvisor) who understands cash value structuring, PUAs, and dividend projections.

 A well-optimized whole life insurance policy can be adjusted with the right rider options and funding strategies to deliver stronger returns over time.

How long does it take for a whole life insurance policy to build cash value in Canada?

In Canada, a whole life insurance policy typically begins building cash value within the first 2 to 3 years, depending on how the policy is structured. However, substantial cash value growth often takes 5 to 10 years to accumulate. 

Whole life insurance policies designed as wealth accumulator plans grow faster than estate-focused ones, especially if they include paid-up additions (PUAs) or are overfunded in the early years. Choosing a participating whole life insurance policy from a reputable Canadian insurer with strong dividend performance also boosts long-term growth. 

While cash value starts small, consistent funding, reinvested dividends, and smart policy design can accelerate its growth and turn it into a powerful tax-advantaged financial asset.

Can I use the cash value of my whole life insurance policy to fund my retirement?

Yes, the cash value in a whole life insurance policy can be a valuable source of retirement income in Canada. Over time, your policy builds cash value that grows tax-deferred, and you can access it through policy loans or withdrawals. 

Policy loans, when structured properly, allow you to tap into your funds without triggering immediate taxes, making them a tax-efficient income strategy. Unlike RRSPs, this access doesn’t impact your taxable income directly. 

While it’s not meant to replace traditional retirement savings, your whole life policy can act as a supplemental retirement tool, offering flexibility, liquidity, and a financial cushion in your later years.

Is a Wealth Accumulator plan always the best whole life insurance option?

A Wealth Accumulator plan can be an excellent choice if your main goal is to build cash value quickly. These policies are structured to grow accessible funds faster in the early years, making them ideal for people who want to use their whole life insurance policy for retirement income, borrowing, or short-to-medium-term financial planning.

However, this faster cash value growth comes with a trade-off. Over time, the death benefit in a wealth accumulator plan tends to be lower than that of an estate planning policy, especially in the later years. 

Estate plans grow the death benefit more significantly over the long term, making them better for legacy planning. The best option depends on whether you prioritize living benefits or leaving a larger inheritance.

Common mistakes that can lower the cash value growth of your whole life insurance policy

Even though whole life insurance offers guaranteed growth and long-term financial security, common mistakes like paying minimum premiums, skipping PUA riders, or borrowing from your policy too early can lower the cash value of your whole life insurance policy.

• Only paying the minimum premium: Sticking to the base premium alone slows down early cash value growth, as you’re not leveraging the policy’s full funding potential
• Skipping paid-up additions (PUAs): Avoiding PUAs means missing out on one of the most powerful tools to boost both cash value and death benefit through dividend reinvestment
• Borrowing too early from your policy: Taking loans in the early years reduces compounding benefits and can negatively impact future growth and dividend performance
• Choosing the wrong type of whole life policy: A policy designed primarily for estate planning may not offer the early liquidity you need if your goal is faster cash accumulation
• Not reviewing your policy annually: Failing to assess your policy regularly with your advisor can result in missed opportunities to adjust dividends, PUAs, or payment structure

Is whole life insurance a good investment in Canada?

Whole life insurance can be a good investment in Canada if you’re looking for long-term financial security with tax advantages. While it’s not a traditional investment like stocks or mutual funds, it offers guaranteed cash value growth, lifetime coverage, and dividend potential through participating policies. 

The cash value grows tax-deferred and can be accessed through loans or withdrawals, making it a useful complement to RRSPs and TFSAs. It’s especially valuable for high-income earners, business owners, or those who’ve maxed out registered accounts. 

However, premiums are higher than term insurance, and returns are conservative. It’s best viewed as a low-risk, tax-efficient asset for wealth preservation and not as a high-growth investment. You can seek the help of experienced advisors (like our experts at PolicyAdvisor) to get the cheapest whole life insurance quotes in Canada based on your unique cash value requirements!

Losing a loved one is hard, and the cost shouldn’t make it harder. In Canada, funeral cost may range between $7,500 and $8,500 and higher. Final expense insurance helps cover these costs. 

The Canada Pension Plan (CPP) death benefit is a fixed amount that may not be enough to cover funeral costs. This is where final expense life insurance for seniors can help. 

Also called burial insurance in Canada, this coverage is designed to pay for funeral services, outstanding debts, and other end-of-life expenses so your loved ones are not left with financial hardship. 

What is final expense life insurance for seniors in Canada?

Final expense life insurance, also known as end-of-life insurance or burial insurance, is a permanent insurance that helps Canadian seniors cover the cost of their funeral after their death, without financially burdening their loved ones.

The end-of-life insurance coverage ranges from $5,000 to $50,000, depending on the funeral expenses your loved ones might incur.

Why do Canadian seniors consider final expense life insurance?

As a Canadian senior, you can buy life insurance to secure the future of your loved ones. You can choose a life insurance plan that provides coverage for a specific term based on your financial requirements. However, as you age, your financial priorities may change. Buying burial insurance for seniors helps your loved ones cover the cost of your funeral without facing any financial problems.

Here’s why you should consider buying final expense life insurance in Canada:

• Covering the cost of a funeral: Funeral costs have grown significantly in Canada. The average cost of a funeral in Canada is estimated to range between $7,500 and $8,500. Government-sponsored coverage may not be enough to cover this amount. Final expense insurance helps cover these gaps
• Clearing any outstanding debts: Unpaid debts may cause financial distress to your family members. The death benefit received from a life insurance policy can be used to clear any debts in your name, protecting your family from financial distress 
• Taking care of legal and medical fees: Typical health insurance plans in Canada may not cover certain end-of-life expenses. You may incur legal fees during estate planning, which adds to your overall expenses. Your final expense life insurance plan ensures that these costs are covered without exhausting your savings or putting any unnecessary financial pressure on your family
• Affordable and easy to buy: Certain final expense life insurance plans, like guaranteed-acceptance, do not require a medical examination, while simplified-issue plans require answering a short questionnaire. Fully underwritten plans require a medical examination. Guaranteed-acceptance policies typically have higher premiums, lower coverage, and a waiting period

How does final expense insurance work for seniors in Canada?

Final expense insurance covers the cost of the funeral and other expenses related to it. As you grow older, it is recommended that you consider buying a burial insurance plan.

Given below is the guide to how final expense insurance works for seniors in Canada:

• Buying an insurance policy: Many Canadian insurers offer coverage for ages up to 80 and 85 years, typically between $5,000 and $25,000. However, coverage amounts and maximum ages vary by insurer and plan. Book a call with our expert advisors at  PolicyAdvisor to compare different quotes and buy appropriate insurance coverage
• Premiums are fixed: Premium rates for final expense insurance in Canada are typically fixed once issued. However, premiums for certain guaranteed-acceptance plans may increase with age. Always check your policy to know whether your premium is age-based or fixed
• Tax-free payout: Your beneficiary receives a tax-free payout called the death benefit. This amount will help your loved ones fulfil their financial requirements
• Cover other expenses: Apart from clearing the cost of your funeral, burial insurance in Canada helps your loved ones manage their other financial expenses, such as mortgage payments, estate administration taxes, family debts, final income taxes, and other outstanding debts

What are the costs and premiums of final expense life insurance for seniors in Canada?

The premium rates for end-of-life insurance depend on your personal needs and the specifications mentioned in the policy document. You should compare life insurance quotes to determine the best policy for you. 

With the price of a funeral in Canada estimated to be between $7,500 and $8,500 and even more in 2025, burial insurance not only covers the funeral cost but also leaves a legacy behind for your loved ones.

*Illustrating the monthly cost of a final expense policy for smokers and non-smokers across different age groups and coverage amounts.

Do the premium rates vary by health status and age?

Final expense insurance premiums can differ. For example, if you are a senior in Canada, a non-smoker, and in good health, the monthly premium for coverage of $10,000 will be between $30 and $70. 

However, if you are a Canadian senior who smokes and is diagnosed with a medical condition, the premiums for the same coverage amount will cost $100 or even more, monthly.

What factors affect the price of final expense life insurance for Canadian seniors?

Several factors affect the final price of the insurance. It is important to be aware of them so that you can buy an appropriate policy offering you benefits suitable to your needs: 

• Age: The premiums will depend on your age. The older you are, the higher the premium rates will be
• Status of your health: The status of your health will determine the premium rates. Though insurance products like guaranteed acceptance offer insurance even if you are diagnosed with a pre-existing condition, the premium rates are high
• Status of smoking: The premiums for a smoker will be higher, as they are at a higher risk of potential health issues
• Gender: Premiums for women are lower since they are expected to have a longer life expectancy
• Coverage: If you choose a plan with high coverage, the premium payable will be high as well
• Type of policy: The type of policy also decides the premium rates. For example, the premium for a guaranteed accepted insurance plan will be higher compared to a simplified issue insurance plan

How does coverage affect the cost of final expense insurance in Canada?

The overall cost of your life insurance policy will depend on the coverage amount, as illustrated in the tables above. The premium for a life insurance policy with a higher coverage amount is typically higher, since the insurance company is taking more risk.

For example, a 75-year-old healthy non-smoker may pay up to $260 for coverage of $25,000, whereas another person of the same age but who is a smoker and diagnosed with a medical condition may pay up to $490 for the same policy.

What does final expense insurance cover?

A final expense life insurance plan helps your loved ones cover the cost of your funeral after your passing and handle their other financial expenses. This insurance is designed to ensure your loved ones do not face any financial problems after you are no more.

Your beneficiary can use the death benefit to clear various financial expenses, including:

• Cremation and funeral expenses: The cost of a funeral and cremation in Canada is estimated to be between $7,500 and $8,500, and can even go up to $15,000 in some cases. A burial insurance plan helps in covering these costs
• Outstanding debts: The coverage offered can be used to clear any outstanding debt you are unable to pay during your lifetime. This ensures your loved ones need not worry about any financial expenses once you have passed
• Legal fees: Your loved ones may have to pay an administrative fee during the settlement of the estate. The coverage received can help in clearing them
• Living costs: Your loved ones can use the coverage to take care of their day-to-day living expenses
• Leaving behind a legacy: Once all the costs related to the  funeral and other expenses have been cleared, any funds remaining can be used by your loved ones to take care of their other financial needs

What are the types of final expense life insurance policies for seniors in Canada?

End-of-life insurance for seniors comes in different types. A senior in Canada can choose from one of these insurance products based on their financial requirements and other final expenses. These burial insurance products help in covering the funeral costs and allow your loved ones to manage their own expenses. 

Final expense life insurance policies are of three types:

• Whole life final expense insurance
• Guaranteed-acceptance final expense insurance
• Simplified-issue final expense insurance

Whole life final expense insurance

A whole life final expense insurance is a type of permanent life insurance that provides you coverage for life in return for the timely payment of your premiums. 

Guaranteed-acceptance final expense insurance

You can buy a guaranteed-acceptance final expense insurance plan without undergoing a medical examination. The maximum eligible age for buying this insurance is 85 years, and it can be obtained even if diagnosed with a serious medical condition. This insurance product promises guaranteed approval of the application.

Simplified-issue final expense insurance

Application for simplified-issue final expense insurance plan doesn’t require a medical examination. However, answering a short questionnaire helps the insurer determine the coverage and the premium rates payable. You can consider buying this insurance since the application process is straightforward and quick.

How to choose the best end-of-life Insurance for seniors in Canada?

To choose the best end-of-life insurance, you will need to thoroughly research. Take into consideration certain factors when looking for life insurance to purchase the most suitable one.

Factors to consider before buying end-of-life insurance

You will need to take into consideration certain factors to buy the most appropriate end-of-life insurance:

• Determine your needs: Calculate the estimated coverage that covers the cost of the funeral and helps you leave behind a legacy. According to statistics by the Financial Consumer Agency of Canada, the total funeral expenses may range between $5,000 and $15,000. You must consider your outstanding debts and other expenses while deciding upon coverage
• Access your health status: Evaluate the status of your health and provide correct health-related information to receive appropriate coverage. You can buy a whole life insurance plan or a simplified issue insurance plan if you are healthy; otherwise, consider buying a guaranteed accepted insurance plan
• Budget review: Review your budget, monthly expenses, and other costs to determine if the premium rates for the coverage are affordable or not. Premium rates for burial insurance are mostly fixed, so you will have to buy a policy which fits your long-term budget
• Insurer reputation: There are plenty of insurance companies in Canada that are reputable and have strong financial ratings. You can get in touch with advisors at PolicyAdvisor, who will help you know more about these insurers and the policies offered by them

What are the common misconceptions about end-of-life expense insurance for Canadian seniors?

Seniors in Canada often misunderstand the purpose of burial insurance and believe myths that prevent them from buying a suitable policy. It is important to debunk these myths about this insurance so that you can make more informed choices when buying coverage.

Some of the common myths about final expense insurance include:

• It’s just insurance to cover funeral costs: Apart from covering the cost of the funeral, the death benefit is tax-free and can be used to cover other financial expenses too
• Too healthy to buy this insurance: You should buy final expense insurance when you are young and healthy, since the premiums are lower and stay fixed for life. With age, the health risk increases, making it difficult to get higher coverage at lower premiums
• Expecting your family to cover the cost: It is unfair on your loved ones to bear your debts after you have passed. This insurance ensures the beneficiary receives the death benefit to cover their funeral cost and also manages their financial needs

How to file a final expense insurance claim in Canada?

The claim-filing process for insurance in Canada is simple and easy, even though the process may vary among insurers. Understanding the claim-filing process helps in saving time and ensures the beneficiary receives the death benefit without undue delay.

• Inform the insurer: The beneficiary must inform the insurance company of your passing to begin the claim process
• Complete the claim form: The beneficiary must complete the claim form, with correct information to speed up the claim process 
• Submit documents: Submit the claim form along with your supporting documents such as death certificate
• Reviewing the claim: The insurer will review and verify the claim to make sure all the details are correct
• Payout received: Once the insurer is satisfied with the verification process, they will issue the death benefit to the beneficiary

Get in touch with the consultants at PolicyAdvisor, who will guide you through the claim-filing process for final expense life insurance and ensure all your claim-related queries are answered.

Life insurance for seniors doesn’t have to be expensive, especially if you know how to compare your options. Many Canadian seniors are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. 

In fact, a 2024 report by LIMRA shows that 57% of Canadians now have life insurance, reflecting a steady rise in coverage since 2019. As demand grows, insurers continue to offer competitive life insurance rates for seniors. There are affordable solutions, even if you’re over 60, 70, or even 80.

In this guide, we’ll explore the cheapest life insurance options for seniors, compare popular policy types, and share tips on how to make your policy affordable.

Why do seniors need life insurance?

Even in retirement, life insurance remains a smart financial tool for Canadian seniors. It helps cover end-of-life costs, protect loved ones, pay off any mortgage or loans and ensure your legacy lives on.

• Covering final expenses: Life insurance for seniors helps pay for funeral expenses, medical bills, and outstanding debts, reducing financial stress on the family
• Supporting dependents or leaving a legacy: Affordable senior life insurance ensures financial security for a surviving spouse, children, or grandchildren, while allowing you to leave an inheritance
• Protecting retirement savings from unexpected costs: Senior life insurance prevents dipping into RRSPs, pensions, or savings for unexpected expenses like medical care
• Paying off remaining mortgages or loans: Many seniors still carry mortgage or loan balances; life insurance can cover these obligations and protect assets
• Charitable giving: Whole life insurance for seniors can fund donations to causes you care about, leaving a lasting impact
• Covering probate fees: Life insurance can pay probate fees and taxes on deemed disposition, so heirs receive their full inheritance without financial strain

Which factors influence the cost of life insurance for seniors?

Not all life insurance plans cost the same for seniors in Canada. Several factors determine how affordable your policy will be, from your age, health profile and smoking status to the type of coverage you choose and underwriting type.

• Age and health profile: Younger and healthier seniors usually qualify for the lowest life insurance rates in Canada
• Coverage amount and term length: Shorter term life insurance policies and lower coverage amounts cost significantly less than permanent plans
• Underwriting type: Fully underwritten life insurance (with medical exams) is typically the cheapest option for healthy seniors, while no-medical plans cost more
• Optional riders: Adding features like critical illness or accidental death benefits can increase premiums, so stick to essentials to keep costs low
• Smoking status: Non-smokers get cheaper senior life insurance rates, as smoking dramatically raises premiums
• Policy type: Term life insurance for seniors is usually the most affordable; whole life and guaranteed issue policies are more expensive
• Gender and lifestyle: Women and those with healthy habits (no alcohol abuse, active lifestyle) often enjoy lower rates

Which are the cheapest life insurance options for seniors?

Finding the right life insurance plan as a senior doesn’t have to be expensive. Many Canadian insurers offer affordable solutions tailored to different needs, whether you require temporary protection, lifelong coverage, or quick approval without the need for medical exams.

Some of the cheapest life insurance options for seniors in Canada include Equitable Life, iA, Sun Life, Canada Life and Manulife.

1. Equitable Life: Cheapest life insurance for non-smokers

Equitable Life delivers some of the most affordable life insurance rates in Canada, especially for non-smoking seniors. Its policies combine affordability with strong value through dividend options and estate planning benefits.

Key features of Equitable Life

• Offers low premiums for non-smokers and healthy seniors
• Provides participating whole life insurance with cash value growth
• Delivers consistent dividends through its mutual ownership model
• Flexible plans for long-term estate and legacy planning
• Available simplified issue options for easier approval

2. iA Financial: Cheapest for no-medical plans

If medical exams are a concern or health conditions make approval difficult, iA Financial’s Access Life plan offers a stress-free alternative. This plan requires no medical tests, only a short health questionnaire, while still offering a range of coverage options. 

Seniors can choose between term and permanent plans, making it easy to align protection with financial goals. Quick approval makes it an excellent option for those who value convenience and speed without compromising coverage.

Key features of iA

• No medical exams required, just a simple health questionnaire
• Available up to age 80, making it accessible for older seniors
• Offers both term and permanent coverage, giving flexibility to choose the best fit
• Perfect for those with pre-existing conditions or who want quick, hassle-free approval

3. Sun Life: Cheapest life insurance for high coverage values

For seniors seeking comprehensive, lifelong protection with significant coverage amounts, Sun Life’s Sun Par Whole Life policy stands out. This participating whole life plan not only guarantees lifetime coverage but also builds cash value and earns dividends over time, making it a strong financial planning tool. 

It’s best suited for seniors who have the means to pay higher premiums and want to maximize estate value for heirs or charitable giving. Full underwriting ensures competitive rates for those in good health.

Key features of Sun Life

• Participating whole life policy that allows policyholders to share in dividends
• High face amounts available, making it suitable for those with substantial estate planning needs
• Long-term growth through dividends, which can enhance cash value and death benefit over time
• Requires full medical underwriting, offering the most favourable rates for healthy applicants

4. Canada Life: Cheapest life insurance for estate planning

When the goal is to leave a meaningful legacy, Canada Life’s Estate Select is a top contender. This plan combines guaranteed lifetime coverage with cash value accumulation and flexible premium options. 

It’s tailored for individuals or couples who want to transfer wealth efficiently while minimizing taxes on deemed disposition and probate fees. One of its unique features is the ability to split joint coverage into two individual policies without new medical exams.

Key features of Canada Life

• Participating whole life insurance with guaranteed cash values, ensuring lifelong security
• Designed for tax-efficient wealth transfer and estate planning strategies
• Premium options include limited pay periods (such as 10 or 20 years), which allow you to pay off the policy faster
• Joint coverage can be split into individual policies without medical evidence, offering future flexibility

5. Manulife: Cheapest life insurance for quick approvals

If you need life insurance quickly, Manulife’s CoverMe No Medical plan delivers one of the fastest application processes in the market. This policy offers instant online approval for many applicants, making it ideal for seniors who need immediate coverage for final expenses or leaving a small legacy. 

Key features of Manulife

• Simple online application with instant decisions for most applicants
• Coverage up to $75,000, designed for seniors aged 50–75
• No medical exams or lab tests, ensuring a fast and easy process
• Perfect for final expense coverage or leaving behind a modest inheritance

Secure peace of mind that lasts a lifetime.
Our tool helps you estimate whole life insurance coverage that builds value while protecting your loved ones.

Can seniors over 70 get affordable life insurance?

Yes, seniors over 70 can still get affordable life insurance in Canada, though options are more limited and premiums are higher than at younger ages. The most budget-friendly choices include simplified issue and guaranteed issue policies, which don’t require medical exams and offer quick approval. 

Coverage amounts are usually smaller, often ranging from $5,000 to $100,000, making them ideal for final expenses or leaving a small legacy. Comparing quotes and choosing a shorter term or permanent plan with lower coverage can help keep costs down.

Is term or whole life insurance better for seniors?

For seniors, the choice between term and whole life insurance depends on needs and budget. Term life insurance is usually cheaper and ideal for short-term needs like covering debts or providing income for dependents. However, it expires after a set period. 

Whole life insurance offers lifelong coverage with a cash value component, making it better for leaving a legacy or covering final expenses. Seniors who want permanent protection and don’t mind higher premiums often prefer whole life, while those on a tight budget typically choose term coverage.

Are no-medical life insurance policies cheaper for seniors?

No-medical life insurance policies are generally not cheaper for seniors. These plans skip medical exams, making them convenient for those with health issues, but insurers take on a higher risk. As a result, premiums are usually higher than fully underwritten policies that require health checks. 

However, for seniors with pre-existing conditions or those who want fast approval, no-medical policies can still be the most practical choice despite the higher cost. If affordability is the main concern, a fully underwritten policy often offers the lowest rates for healthy seniors.

Does smoking affect life insurance rates for seniors in Canada?

Yes, smoking significantly increases life insurance rates for seniors in Canada. Insurers classify smokers as higher-risk applicants because of health complications linked to smoking, such as heart disease and cancer. As a result, premiums can be 50% to 100% higher than for non-smokers. 

Some companies may offer more competitive rates after you’ve quit smoking for at least 12 months and can prove a tobacco-free lifestyle. Simplified/guaranteed issue policies may have less severe smoker rate differentials compared to fully underwritten plans, but premiums are still higher for smokers.

How can seniors lower the cost of life insurance premiums in Canada?

Seniors in Canada often face higher life insurance premiums due to age and health factors, but there are practical ways to reduce costs. By making smart policy choices and improving personal risk factors, seniors can save significantly on premiums.

• Choose a smaller coverage amount: Selecting only the amount needed for final expenses or debts helps keep premiums low
• Opt for term life instead of permanent insurance: Term policies usually cost less than whole life insurance and work well for short-term needs
• Maintain good overall health: Seniors who stay healthy and pass medical exams often qualify for cheaper, fully underwritten policies
• Quit smoking to get non-smoker rates: Life insurance premiums can drop by up to 50% after being tobacco-free for 12 months
• Compare quotes from multiple insurers: Different companies offer different rates, so shopping around can lead to big savings
• Avoid unnecessary add-on riders: Extra features like accidental death or critical illness riders increase costs, so only choose essentials
• Apply for coverage as early as possible: Premiums rise with age, so applying earlier locks in a lower rate for the future

The life insurance market in Canada is constantly growing, with total premiums estimated to be $34.7 billion or $880 per person in 2025, according to data by Statista. This clearly shows that a large number of Canadians consider life insurance to be important and would like to obtain a policy to secure their financial future.

However, Canadians face significant challenges in buying life insurance due to concerns related to complexity and affordability, making it difficult for them to decide upon a life insurance policy.

In this blog, we will take a look at how to buy life insurance in Canada, explore top providers, and understand essential tips that can help individuals secure a life insurance policy easily.

What is life insurance?

Life insurance is a financial product that provides coverage to you and protects the future of your loved ones in case of your death. After you pass away, the beneficiary receives a tax-free lump-sum amount known as the death benefit. This can be used by your loved ones to take care of their financial requirements.

According to data by the Canadian Life and Health Insurance Association (CLHIA), at least 30 million Canadians have some form of insurance in 2023. It was estimated that around 23 million people in Canada had life insurance, with insurance companies having paid claims worth $17 billion. 

Various reputable insurance companies in Canada offer different types of life insurance policies, such as term life, whole life, as well as no-medical life insurance plans. You can compare different life insurance quotes before buying a suitable plan.

Why should you buy life insurance in Canada?

Life insurance helps in securing the future of your loved ones even in your absence. There are several benefits of having life insurance, including income replacement, clearing debts, covering future costs and more. In this section, are some of the benefits of having a life insurance policy, that can help you decide your coverage needs.

• Replacement of income: In case you pass away, the death benefit of your life insurance policy will help your family take care of their financial needs
• Debt protection: Life insurance can help in clearing any outstanding dues you may have. This ensures your loved ones are not under unnecessary financial burden
• Future costs: It can help you cover future expenses such as the cost of your children’s education, mortgage payments, retirement, etc.
• Tax benefits: As a Canadian citizen, you can enjoy certain tax benefits if you have an active life insurance policy

How to buy life insurance in Canada: A step-by-step guide

You can either buy life insurance in Canada online or offline. However, you must know the steps you will need to follow to purchase the most suitable policy. These may include understanding your coverage needs, comparing life insurance quotes by various providers, filling out the application form, submitting various documents for the underwriting process and more. 

• Be aware of your coverage needs: Before buying a life insurance plan in Canada, you will need to know how much coverage you will require. You can take into account your current income, your age, the number of dependents, and also your long-term financial requirements to know how much coverage will work for you
• Know which type of policy you need: Life insurance comes in various types. Based on your immediate and future needs, you can choose the life insurance product that you feel will provide you the best benefits
• Compare life insurance quotes: You will have to thoroughly compare quotes provided by various life insurers in Canada to find the best coverage and rates. You can also visit the PolicyAdvisor website to use our free life insurance calculator to compare quotes for various life insurance plans 
• Fill in the application form: Once you have figured out the life insurance scheme you will buy, you will then have to fill in the application form and submit it along with all the necessary documents for verification
• Wait for application to be approved: The insurer will take up to two to four weeks to approve the application. Once that is done, you can then proceed to view your policy documents
• Read the policy documents: The final step is the most important. You must read the policy documents and inform yourself of all the inclusions, exclusions, coverage, and other fine print mentioned. Once you are satisfied with the terms and conditions mentioned in the policy documents, you can proceed to sign the policy documents

Things to consider when buying life insurance in Canada

Before buying a life insurance policy, you must conduct your own due diligence. Evaluate your financial needs, check out the variety of coverage options and look for the insurer’s reputation. You must also read policy documents carefully, look for additional riders or specific exclusions.

This ensures that you do not end up making any financial decisions you may regret later, or buy a life insurance plan which may not be suitable for you. 

• Financial needs: Your financial needs will play a huge role in determining the type of coverage you will need
• Know the type of policy you will need: Life insurance has various types. Know which one would work for you, based on your financial needs
• Coverage: You can use online life insurance calculators to determine the coverage you will require
• Check your budget: Buy a policy keeping in mind your future budget. You don’t want to under-insure or over-insure yourself
• Insurer’s reputation: Some of the best life insurance companies in Canada come with strong financial ratings and reputations. Do check out the insurer’s credentials before buying life insurance
• Read the policy document carefully: Before you sign on the dotted line, read the terms and conditions mentioned in the policy document
• Riders: Look for riders or add-on plans you can obtain. They provide additional coverage and can be helpful long-term

How much does a life insurance policy in Canada cost?

The cost of a life insurance policy will depend on factors such as age, income, status of smoking status, and the type of policy obtained. For example, a 35-year-old Canadian individual with a term life coverage of $500,000 may have to pay a monthly premium between $20 and $35. 

Whole life insurance premium rates are high as compared to what you would generally pay for term life insurance. It is therefore important that you compare various quotes to know how much coverage you require and based on your financial situation and future goals, which type of life insurance product you must buy.

The table below depicts the monthly premiums of a 20-year term life insurance policy for an individual seeking $500,000 from the top insurers in Canada.

Cost of a life insurance policy in Canada

The cost of a life insurance policy in Canada depends on several factors, including age, health status, coverage amount, type of policy, and lifestyle. Younger and healthier individuals generally pay lower premiums than older individuals with medical conditions. 

Term life insurance is typically the cheapest option, providing coverage for up to 30 years, while permanent insurance premiums are expensive but offer protection and a cash value component. 

How much life insurance coverage do I need in Canada?

Get in touch with our advisors at PolicyAdvisor who will help you determine the total insurance coverage you will need when looking to buy a life insurance plan. You will have to consider certain factors like replacement income, outstanding debts, future expenses, etc, to obtain the most suitable coverage. Knowing the factors affecting your coverage can help you decide how much protection you will need, and buy the most suitable life insurance coverage:

• Replacement of income: You can determine how much coverage you require by multiplying your annual income by the number of years left for your retirement. For example, if you are aged 35 years and your annual income is $50,000, then considering your retirement age to be 60 years, the total coverage you will need is 50,000 x (60-35), which is $1,250,000 
• Outstanding debts: Take into consideration outstanding debts and mortgage payments to determine the appropriate coverage for yourself
• Future expenses: Your future expenses, such as your children’s education, mortgage payments, emergencies, spouse’s retirement, etc., can help you decide on a suitable life insurance coverage
• Current investments and savings: Deduct existing investments and savings before deciding upon the appropriate coverage for yourself

Get in touch with our experts at PolicyAdvisor who will offer guidance to use our built-in life insurance calculator to get instant life insurance quotes. You will need to enter details such as your gender, age, smoking status, postal code, term, and whether you wish to buy insurance individually or have dependents.

What are the types of life insurance policies available in Canada?

Life insurance in Canada can be of several types, based on term duration, underwriting guidelines, etc.. These policies cater to the specific needs of an individual, so based on your financial requirements, choose the one most suitable for you.

• Term life insurance: A term life insurance policy provides coverage to your loved ones and helps in taking care of immediate financial needs, such as funding your children’s education, paying the mortgage, etc.
• Whole life insurance: A whole life insurance policy not only provides coverage for life but also cash value, which you can withdraw during your lifetime. If you are looking to leave behind an inheritance or for long-term estate planning, then it is recommended that you purchase a whole life insurance policy
• No-medical life insurance: You do not need to undergo any medical assessment, and answering a health-related questionnaire is enough. You are not required to share any medical information, and the approval time is faster for such policies. However, the premiums will be higher, and the coverage is just enough if you have short-term financial requirements
• Universal life insurance: A universal life insurance policy not only provides coverage but also offers the option to adjust your premiums, death benefit, and obtain tax-advantaged investment choices. This type of insurance is suitable for high-income Canadian citizens

How to choose between permanent and temporary coverage?

You can choose between permanent and temporary insurance plans. Permanent coverage locks in the premium rate and builds cash value, while temporary insurance only offers coverage and becomes difficult to buy with age. 

Being aware of what different insurance products offer will give better clarity in choosing between permanent and temporary coverage, and buying a suitable insurance plan.

• Whole life insurance and permanent life insurance provide permanent and long-term coverage. If you are looking for insurance and want to build cash value, you can consider obtaining these types of policies
• Term insurance offers only insurance for a limited term. In case of your passing, the beneficiary receives a death benefit, which can be used to clear immediate financial liabilities left behind by you

Who needs life insurance?

Life insurance benefits various Canadians. Canadian citizens from different walks of life can obtain life insurance to take care of their different financial requirements. Whatever your future financial requirements are, life insurance ensures peace of mind and protects the future of your loved ones. 

• Families: Life insurance protects the future of your family members even after you have passed away. Buy this insurance when you are young and wish to lock in cheaper rates or have debt
• Business owner: Ensures continuity of your business and helps in securing loans, and provides protection in case of loss of key partners
• Senior citizens: Canadian senior citizens must obtain life insurance to strengthen the future of their loved ones and cover their final expenses

Should I add riders to my policy while buying life insurance in Canada?

Life insurance plans come with riders or add-on policies that offer extra benefits and features to your base life insurance plan. You can obtain these riders by paying an extra fee. There are various types of riders that you can choose from and improve your coverage.

• Accidental Death and Dismemberment (AD&D) rider: Offers an additional payout in case of an accident-related death
• Critical illness rider: If you are diagnosed with a critical illness, a lump-sum amount is paid 
• Waiver of premium rider: Your premiums are waived off in case of disability or inability to work
• Disability income rider: The policyholder receives a monthly income in case they become disabled
• Child term rider: Your children are covered under this rider. This rider can help in paying for your child’s education and other future expenses and protect their future
• Return of premium rider: On surviving the policy term, the premiums paid will be reimbursed

What are the benefits of buying rider plans?

Adding riders to your existing coverage enables you to customize your plan, protect your finances, and enjoy peace of mind.

• Riders allow you to customize your existing insurance policy based on your changing financial requirements
• Certain riders cover illness and disability, which helps in savings
• You enjoy peace of mind as the rider covers additional financial risks

Can I buy life insurance online in Canada?

Yes, you can purchase life insurance online in Canada. Various Canadian insurance companies offer you the option of browsing their life insurance plans, comparing insurance quotes, and purchasing life insurance. 

Our licensed experts at PolicyAdvisor help you compare various life insurance policies and get the best quotes based on the details provided with the help of our in-built life insurance calculator, which you can use for free. Our PolicyAdvisor insurance advisors are available to offer to help you with any insurance-related queries, even after you have obtained a new policy.

Given below are some of the advantages of buying life insurance online:

• The application process is free and fast
• You get online tools to know instant quotes
• You can browse for various policies and take your time deciding on the one best for you
• You get access to various insurance companies and the policies offered.
• It is easier to manage your policy 

What are the common mistakes to avoid when buying life insurance?

You should thoroughly compare different life insurance policies to determine the one best for you. By being aware of the potential mistakes, such as overlooking exclusions, underestimating your financial needs or delaying your insurance purchase, you can ensure that you not only buy the best life insurance plan but also do not end up over-insuring or under-insuring yourself.

By evaluating your coverage needs, and comparing different insurance quotes, you can buy a suitable life insurance policy, and avoid making costly errors. 

• Not looking at the features, but only the price
• Not comparing enough life insurance policies and insurance quotes
• Underestimating the coverage necessary
• Waiting too long to buy life insurance. You must note that with age, the premiums may increase as well
• Not reviewing the exclusions under the policy
• Either getting less coverage or getting more than what is sufficient
• Choosing the wrong beneficiaries or not informing them
• Not updating beneficiaries after life events (e.g., divorce)

Planning your family’s financial future doesn’t end at retirement. For many Canadian seniors, life insurance becomes even more important to help cover rising healthcare costs, final expenses, and provide a lasting legacy.

For Canadian seniors over 50, getting life insurance in Canada can be challenging due to age limits, health checks, or complex processes.

Traditional policies often come with age limits, health checks, and long application processes. But today’s market offers more flexible options. No medical exam life insurance is now a popular solution for older adults and those with health concerns.

In this article, we will help you:

• Compare traditional and no medical exam life insurance
• Understand your options for life insurance over 50
• Explore actual premium examples
• Get expert advice to find the right coverage for your budget, health, and family goals

This guide will help you understand the differences between traditional insurance policies and no-medical-exam insurance policies, their benefits and drawbacks, and how to decide which life insurance product to purchase.

Understanding life insurance options for Canadian seniors

As a senior residing in Canada, you can choose from various types of life insurance policies based on your needs. You have to pay a regular premium to the insurer in return for the coverage and a regular lump-sum amount that protects the future of your loved ones.

There are various types of life insurance policies you can opt for depending on your financial needs and family requirements.

Traditional life insurance for seniors

Traditional life insurance provides coverage which offers both financial protection and peace of mind. Based on your financial requirements, you can decide which type of traditional life insurance policy you should buy. Understanding what different insurance helps you decide whether to buy a suitable life insurance policy: 

• Term life insurance for seniors: Term life insurance provides coverage for a set period of time, which can go up to 25 years or until the age of 85 years for senior citizens in Canada. You need to pay a premium that remains constant during the policy period. If you have any outstanding debt or similar financial requirements to fulfil, you can apply for this insurance policy. In case of your untimely death, the nominee will receive a tax-free benefit to clear debts and cover other financial obligations. However, renewal for senior term life insurance becomes expensive due to increased health-related risks and age

• Whole life insurance for Canadian seniors: A whole life insurance policy is an option a Canadian senior individual can consider. This type of policy not only provides coverage but also ensures that you are able to build a cash value over a period of time that is tax-free but can be withdrawn if needed. However, a whole life insurance renewal will cost more than a renewal for a term life insurance policy for a Canadian senior person

• Universal life insurance options: A universal life insurance policy provides not only coverage but also invests a part of your premium in different investment tools. Investments carry risks, and returns aren’t guaranteed, unlike whole life

A policyholder can adjust their premium and death benefits to match their financial needs. While this may look like an attractive option, the premium for such insurance rises with age, making the policy expensive over time. You can opt for such insurance if you do not mind the high cost and the risk.

No medical exam life insurance for Canadian seniors

No medical exam life insurance is designed for applicants, often seniors, who want coverage without the need for a physical examination or lab tests. Instead of a medical check, insurers assess eligibility using a short health questionnaire or basic lifestyle questions. 

These policies are generally easier to qualify for than traditional life insurance, making them suitable for individuals with pre-existing health conditions or those seeking quick approval. 

The approval time for policy issuance is generally quick and does not take more than two days in Canada.

Types of no medical exam policies available

Simplified issue life insurance

If you don’t want to undergo a medical examination but are comfortable answering a short questionnaire related to your health, you can consider applying for simplified issue life insurance. The approval period is generally two days.

• Health questionnaire requirements: You will need to answer typically between three and 40 questions, mostly related to your health and lifestyle. These questions help the Canadian life insurers determine the coverage and premiums for your policy. Ensure you answer all the questions and provide correct information
• Coverage amounts available ($10,000-$500,000): Insurers in Canada offer coverage under this type of policy ranging between $10,000 and $500,000, depending on the applicant’s age. However, for senior citizens, the coverage might be lower
• Waiting periods and restrictions: No medical exam insurance policies may include a waiting period of up to two years, depending on factors such as the policyholder’s age, pre-existing medical conditions, etc., while some may not have one. It is important to check the policy document’s fine print to know about the policy terms and the waiting period before signing on the dotted line

For whom are simplified issue policies suitable?

Seniors with mild to moderate health conditions can apply for a no-medical exam policy. If an individual doesn’t qualify for traditional insurance, then they can consider buying this type of insurance scheme. If you are healthy for your age, then you will be able to get high coverage and lower premiums. The other reason to apply for this type of policy is the short approval time.

Guaranteed Acceptance life insurance

Under this type of policy, you will not be required to either undergo a medical examination or answer any questions. In most cases, approval is guaranteed. However, the coverage for a senior person in Canada can range between $25,000 and $50,000.

• No health questions or medical exams: The senior Canadian applicant will neither be required to undergo a medical examination nor answer any questions to obtain this type of insurance policy
• Coverage limits (typically $5,000-$25,000): The coverage limit for such a type of insurance policy is not very high and generally ranges between $25,000 and $50,000
• Graded death benefit periods: For such a policy, there is a waiting period of about two years. In case the policyholder expires due to any reason other than accidental death, the nominee will receive a percentage of the death benefit or the return of the premium paid to date
• Premium costs vs. coverage ratios: Due to the absence of any medical underwriting, the coverage offered is low, while the premium rates are higher compared to other life insurance products
• Accelerated underwriting programs: The insurer takes into account factors such as prescription, technology, and health data to eliminate the need for medical examination, even for higher coverage
• Digital health assessments: On filling out the health-related questionnaire online, the insurer can access the risk and decide on the coverage and premium rates
• Prescription database checks and medical record reviews: The senior applicant’s medical history and prescription records can be accessed by the insurer (subject to consent) for verification
• Faster approval times: Accelerated underwriting expedites the approval time, typically taking not more than two days, and in some cases provides instant approval for low-risk seniors. For those looking for high coverage, quick approval, and guaranteed acceptance, applying for a no-medical-exam life insurance policy is a good option

Top Canadian insurance companies offering no medical exam coverage 2025

Insurance companies like RBC, Manulife, Sun Life, etc. offer no medical exam life insurance to seniors over 50 years of age. Get in touch with our consultants at PolicyAdvisor, who will help you understand the insurance and compare various insurance quotes. Our advisors are available not only during the application process but also offer help during the policy term and clear any insurance-related queries.

In the table given below, you can check out some of the insurance companies in Canada that offer no medical exam life insurance, including the type of coverage, the coverage amount, and their features:

What is the coverage amount and the cost of the premium for life insurance products in Canada?

The cost of the premiums depends on factors such as the type of life insurance product, coverage amount, age, and risk factor. Knowing the cost of coverage and premiums can help you decide which life insurance you must buy that will provide you with long-term benefits, along with securing the future of your loved ones.

What are the pros and cons of traditional insurance and no medical exam insurance for Canadian seniors?

Seniors over the age of 50 can choose between traditional insurance or no medical exam insurance plans, depending on their future financial needs, income, number of dependents, etc. 

These types of insurance plans not only provide coverage and protect the future of your loved ones, but also help you protect your assets, cover any expense in case you have a pre-existing medical condition, or simply for estate planning. Both traditional insurance and no medical exam insurance plans have their benefits, which you can obtain based on your requirements.

These types of life insurance products come with their drawbacks, too. It is important that you are aware of their shortcomings and accordingly decide which type of life insurance plan will work for you.

Benefits of traditional insurance policies

Traditional policies offer protection, helping in securing the future of your loved ones. This insurance also enables building a cash value that ensures you can take care of your future financial needs. Knowing the benefits offered by traditional insurance can help you decide whether to buy this type of policy.

Benefits of no medical exam life insurance

No medical exam life insurance provides coverage without requiring you to undergo a medical assessment. If you are looking for quick approval, have a pre-existing medical condition, or are at risk of policy denial, you can consider buying no medical exam life insurance. Though the premiums for this insurance are higher, it conveniently offers coverage without having to undergo a medical examination. Know the benefits to make an informed decision.

Drawbacks of traditional life insurance policies

Traditional life insurance offers benefits such as offering coverage, building a cash value; it has its drawbacks, such as the lack of flexible options, slow cash value growth, etc. This section tells you about the disadvantages of traditional life insurance so that you can decide whether this insurance is suitable or not. 

Drawbacks of no medical exam policies

No medical exam life insurance is easy to buy, since it offers quick and convenient coverage. It comes with certain disadvantages, such as high premiums with limited coverage. This type of life insurance is typically more expensive and less comprehensive as compared to a traditional life insurance plan. 

Life insurance application process for Canadian seniors

Senior Canadians must secure the future of their loved ones by buying either a traditional life insurance plan or a no medical exam insurance plan. These products not only provide peace of mind but also help in paying outstanding dues, estate planning, or simply leaving a legacy behind.

In this guide, you will be able to understand the steps you will have to follow while applying for a traditional life insurance plan. Apart from the application process, the guide also lists the documents you will have to submit for verification. 

Traditional life insurance application steps

Knowing the traditional life insurance application process helps you prepare for the medical examination and have your documents to simplify buying life insurance coverage. In this section you will be able to understand the steps to apply for traditional life insurance.

• The first step is to fill in the application form. Provide all the necessary information and submit it along with all the required documents
• The next step is to undergo a medical examination. One will have to schedule an appropriate date and time at which they will be subjected to the examination
• The insurer will verify the details provided and, based on that, decide the coverage and premium. The whole process may take between 4 weeks and 6 weeks for issuance

No medical exam application process

The no medical exam life insurance process is generally quick and convenient since there is no medical examination required. However, knowing the steps to apply for no medical life insurance makes the whole process of buying this insurance simpler and faster. It is important to note that the application process will differ slightly for simplified issue and guaranteed acceptance life insurance, respectively.

• Simplified issue applications:

• • • Fill in a digital form and complete the health-related questions
    • The insurer will verify your prescription records to determine the status of the applicant’s health
    • The risk assessment process is sped up with the help of data and technology
    • The application for such policies gets approved almost instantly, within a few hours to a few days

• Guaranteed acceptance process:

• • The applicant will only need to provide their basic information.
  • These types of policies are issued within a few hours
  • There is, however, a waiting period of 2-3 years, after which all benefits are fully activated

What documentation is required for traditional policies and no medical exam policies?

Both traditional and non-medical exam policies can be obtained after submitting the required documents. The documents seniors are required to submit are: 

• Government-issued identification such as a passport, driving license, provincial ID card, etc.
• Income proof such as tax returns, pension statements, etc.
• Banking details for the ease of payment of premiums
• The basic details of the nominees and other beneficiaries

How can seniors in Canada choose the right life insurance policy?

Canadian seniors can choose the right insurance by evaluating their coverage needs, health status, and budget. Seniors in Canada can understand what each life insurance policy offers and whether they are suitable or not. Based on this information, they can decide to buy a suitable and affordable life insurance plan.

You can also get in touch with our experts at PolicyAdvisor who will guide you through the process of comparing different life insurance quotes and helping you choose the most suitable plan.

When to choose traditional life insurance?

It is important to know when traditional life insurance can be suitable for a senior citizen in Canada. Being aware of these points will help the applicant buy the most appropriate insurance plan for themselves. 

• If the applicant is healthy for their age
• If the person is looking for large coverage, then traditional insurance is ideal
• For someone looking for long-term financial protection, having a traditional life insurance policy is appropriate
• If estate planning is a key priority for someone, they should consider traditional insurance policies

When to choose a no medical exam insurance plan?

Consider buying a no-medical exam policy if you have a pre-diagnosed medical condition, want quick approval, and lower coverage in future. 

• If the applicant has pre-existing medical conditions
• If the person is looking for a quick, hassle-free approval of their coverage
• If the senior person needs smaller coverage
• Someone who has had their previous insurance application denied can consider such insurance policies

Which Canadian life insurance companies offer plans for seniors in Canada?

Seniors in Canada seeking life insurance can explore a range of plans from reputable insurers with strong financial track records. At PolicyAdvisor, our licensed advisors will help you compare providers, understand your options, and find the right insurer and plan to suit your needs.

Best traditional life insurance 

Various reputable insurers in Canada offer a range of traditional life insurance options, offering suitable coverage catered to different financial goals and family requirements.

Things to keep in mind before purchasing life insurance

Before buying insurance, you must compare various plans to ensure you have an insurance plan that offers maximum benefits. There are other factors that can help decide better what type of coverage will be suitable. 

• Look for insurance policies offered by insurers with strong financial ratings
• Check the customer service of the insurance company. Look at how quick their turnaround period is
• Look for insurance companies with a good claim payment history that are known to issue claims on time
• Compare the premium rates for different plans. The premiums for no medical exam insurance plans are generally high
• Check if the insurance scheme offers benefits such as rider plans, accumulation of cash, etc.

Common mistakes Canadian seniors make when buying life insurance

Buying life insurance as a senior in Canada can be a smart way to protect your loved ones, but it’s easy to make costly mistakes during the process. These errors can lead to higher premiums, unsuitable coverage, or even policy denial. Understanding what to avoid can help you secure the right plan with minimal stress and maximum value.

There are some commons which if avoided can help in buying a comprehensive and suitable life insurance plan. 

• Not taking into account additional expenses that a person may incur in the future
• Not taking into account inflation can result in a person buying insurance not suitable for them
• It is recommended to clear all outstanding dues before purchasing insurance, so that one doesn’t face additional financial burden going forward
• One should take into consideration the needs of their spouse before purchasing insurance
• Providing inaccurate information about your health or withholding medical conditions can result in purchasing insurance that is not suitable
•  It is important to understand the questionnaire and answer it truthfully. Failure to do so may result in complications related to underwriting
• The applicant’s insurance application may get rejected due to failure to submit the correct documents