If you're over 65, you may be wondering if it's too late to purchase affordable life insurance for seniors. Luckily, there are options. Find out more here.
Life insurance for seniors doesn't have to be expensive! The good news is if you are senior, you can get life insurance for a lot less money than you think.
Because of modern technology and a new awareness for healthier life decisions and habits, people are living longer and staying healthier than ever before. In fact, at the time this article was posted in April of 2022, there are over 6 million Canadians over the age of 65. By the year 2030, that number is expected to rise to over 9.5 million which means seniors will make up 23% of the population. The risks to insurance companies are lower and so the prices for life insurance have dropped. You may be surprised just how inexpensive senior life insurance coverage can be these days.
Read on for some of the best options when it comes to life insurance for seniors.
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Permanent Life Insurance Policy
Shopping for life insurance is the same as shopping for any other type of insurance. To find the right policy at the best price for your specific situation and needs requires comparing quotes from many different providers.
Seniors have lots of different policy options to choose from. Term life and permanent life insurance are two different types of policies that are available. However, what is recommended for most seniors is to explore the permanent life insurance policies.
There is no single type of life insurance that is best for all seniors, but if you're over the age of 65, we will focus on the permanent life policies. Permanent life policies have the best value out of all the different policy types. The policy guarantees permanent coverage for the rest of your life and the premiums do not change from year to year.
The dependability of these policies make it different from other types of life insurance. Because the premiums always stay the same, this makes it is easier for you to budget and keep your coverage active. While other types of senior life insurance may have cheaper costs than permanent policies, their premiums are tied to other factors. Interest rates or the stock market can effect those premiums, which may result in those options being more expensive in the long run.
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5 Factors to Consider for Senior Life Insurance
There are many factors to consider when you are shopping for life insurance. Below are some things that seniors should be aware of when trying to find the best policy.
1. Financial Stability
How financially stable an insurance company is should be at the top of every buyer's list. After all, an insurance company is only as good as its ability to pay claims. Always check to make sure the company has good financial strength marks from major independent ratings agencies. A great way to educate yourself on your Canada's biggest and best insurance companies is to simply refer to our article on the topic. It can be found here.
2. Low Death Benefits
Not everyone needs a high death benefit. If all you want to cover is your funeral costs for example, even $100K of coverage can be a bit too much. So make sure you do your research to find the company that offers an option most suitable for your needs.
3. Issued Through Age 80 or More
According to the 2012 study done by the World Health Organization (WHO), individuals born in Canada in 1990 have a life expectancy average of 77.5. When we revisited those numbers in 2022 however, that number jumped to the ripe age 82.05. Of course, it is very possible that you live beyond that age, but those numbers affect your options for life insurance. Insurance companies charge more for people who are statistically closer to death.
Most companies who issue permanent life policies will do so through age 85 as long as you are willing to submit to a physical exam. There are some companies who do provide options for seniors who do not want to go through a medical exam. In those cases, most companies will only issue permanent life policies through age 80.
4. Coverage Through Age 100
Permanent life policies technically expire when you reach a certain age. Most insurers give you the option to extend your policy through age 90, 95, or even to 100.
While a policy that lasts to 70 will cost less than the one that lasts to 100, it won't be worth anything if you outlive the policy. Make sure you do your research and see if an insurance company offers coverage through age 100 to truly guarantee the death benefit.
5. Accelerated Death Benefits
An accelerated death benefit for terminal illness is a provision that allows you to access some of your death benefit early if you are diagnosed with a terminal illness.
This provision can also help cover treatments and other end-of-life care. Almost all insurers offer this provision free of charge if you are in decent health at the time of purchase, but different companies have different percentages they will allow you to access early.
Top Life Insurance Options for Seniors
Using an insurance quote comparison platform is a great idea if you want to compare many different options side by side. Allowing a third party who has access to all the newest data from different insurance companies will save you a lot of the hard work.
Based on the factors above, here is a short list of some of the top senior life insurance options.
Industrial Alliance (IA)
The Industrial Alliance Financial Group has an A+ in A.M. Best ratings.
The company offers a wide variety of options, including one that waives premium payments following diagnosis of an illness that is covered under the policy.
The Life and Serenity 65 policy offer options to ensure security. Your life insurance coverage will continue with the possibility of financial assistance if you no longer or able to care for yourself. This financial assistance allows you to receive the care you need.
The IA Life and Serenity 65 policy guarantees life insurance coverage until the death of the insured. You can rest easy, knowing that your loved ones will be taken care of.
Sun Life Financial
If you are looking to leave behind more than just funeral expenses, Sun Life Financial is a great option.
The company has excellent financial strength, rated A+ by A.M. Best ratings, and will issue its permanent life policy to Canadian seniors.
Its accelerated benefit option allows up to 50 percent of the death benefit to be accessed early. The great thing about this policy is that you are guaranteed to qualify no matter the factors. The monthly payments stay the same for life, making it easy for you to budget to maintain your coverage.
This policy is also great because you can apply online and be approved in minutes, no medical exam necessary. If you have had trouble with applying for insurance in the past, this may be a great option for you.
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Ready to Get Insured?
It may seem overwhelming at first when you are shopping around for senior life insurance. There are a lot of companies and a lot of options out there.
Doing your research, comparing the different pros and cons, and prioritizing your specific needs are all important in choosing the best policy.
Check us out for more information on different policies and which one would work best for you!