Updated: April 2025  |  bremo.io financial guides

Life Insurance for Seniors in Canada: 2025 Guide

Life insurance needs change as you age. Seniors often need coverage for different reasons than younger families — final expenses, estate planning, leaving a legacy, or covering a spouse's ongoing costs. This guide covers the best life insurance options for Canadians over 60, including what's available, what it costs, and how to choose the right coverage.

Why Seniors Seek Life Insurance

The most common reasons Canadian seniors purchase or maintain life insurance include:

• Final expense coverage — Funeral costs typically range $100–$20,000 in Canada
• Leaving a legacy to children or grandchildren
• Estate equalization when assets (a business, a cottage) go to one heir
• Covering a spouse's income needs if they outlive you
• Paying estate taxes on assets like a vacation property or farm
• Charitable giving through the death benefit

Term Life Insurance for Seniors

Term life insurance is available to seniors, though premiums increase substantially with age. Many products are available until age 75 or 80. If you're in good health at 65, a 20-year term to age 85 provides coverage through typical life expectancy. Premiums for a $250,000 policy for a healthy non-smoking 65-year-old male might be $300–$600/month.

Whole Life Insurance for Seniors

Permanent whole life insurance (including participating policies) provides lifetime coverage with a cash value component. For seniors using life insurance for estate planning, a paid-up policy (fully paid in 10 or 20 years) can be efficient. The death benefit is guaranteed and paid tax-free to beneficiaries. Costs are high but certainty is complete.

Guaranteed Issue Life Insurance

For seniors who cannot qualify for medically underwritten coverage due to health conditions, guaranteed issue life insurance provides up to $25,000–$50,000 in coverage with no medical questions. Premiums are the highest available, and graded benefit provisions apply (usually 2-year waiting period). Suitable for final expense coverage when no other option exists.

Final Expense Insurance

Final expense insurance (a simplified issue whole life product) is specifically marketed to cover funeral and burial costs. Coverage amounts of $5,000–$25,000 with minimal health questions are available for seniors up to age 85. These products are widely promoted on television to seniors and are a legitimate option for final expense coverage, though unit costs can be high compared to other whole life products.