Term
For needs with an end date, like the last years of a mortgage. Shorter terms are generally available to older applicants. See term life insurance.
Life Insurance After 60
Life Insurance Over 60: Your Options and the Trade-Offs
Coverage is still available after 60. The real question is which type fits your health, your budget and the need you are trying to cover.
What's Available
Can I get life insurance after 60?
Yes. Term, permanent, simplified issue and guaranteed issue coverage are available to many people over 60, though age limits, amounts and prices vary by insurer.
Permanent
For estate tax, final expenses or a gift to family or charity, whenever death occurs. See whole life insurance.
Simplified issue
A short set of health questions and no medical exam. Approval isn't automatic.
Guaranteed issue
No health questions and no exam, with smaller amounts and a limited benefit in the first two years.
Issue ages vary. Some insurers accept applicants up to 80 on some products, and the term lengths on offer depend on your age.
How Approval Works
What is the difference between medical underwriting and simplified or guaranteed issue?
The less an insurer asks about your health, the more it usually charges or limits. Fully underwritten coverage asks the most; guaranteed issue asks nothing.
| Fully underwritten | Simplified issue | Guaranteed issue | |
|---|---|---|---|
| Health questions | A full application | A short list, and some answers must be no | None |
| Medical exam | May be needed, especially for larger amounts | No | No |
| Can you be declined? | Yes, or offered a higher premium | Yes | Not because of your health, if you meet the age limits |
| Amounts | The largest | Moderate | The smallest, often tens of thousands of dollars |
| Premium | Usually less, if your health is good | More than full underwriting for a healthy person | A lot higher than simplified issue |
| First two years | Full benefit, subject to policy terms | Some pay in full right away, others limit it | Death from natural causes usually returns premiums only |
The Trade-Offs
Which option should I try first?
If your health allows it, start with full underwriting. Compare it before choosing a no-medical policy, which is usually the fallback rather than the first choice.
Fully underwritten
More paperwork and time, and you could be rated up or declined. In return you can apply for larger amounts at a price that reflects your health.
Simplified issue
A middle path if your health history makes a full application hard. Check whether it pays the full benefit from day one.
Guaranteed issue
Your family may get only premiums back if you die of natural causes in the first two years. Compare the premium over the years you might pay it with the benefit.
On any application
Answer every question fully and truthfully. Otherwise the insurer could cancel the policy or refuse a claim.
Retiring?
What happens to my group life insurance?
Check before your last day. Many group plans let you convert to an individual policy without medical evidence, but usually only within 31 days after coverage ends or is reduced.
Some plans limit the amount, and some don't allow conversion if coverage ends at or after 65. Individual rates are likely higher than what you were paying, so compare a fully underwritten policy if your health is good.
Existing Coverage
Should I check my current policy first?
Yes. A term policy may still be renewable, and it may have a conversion right that gives you permanent coverage without proof of good health, if the deadline hasn't passed. See how renewal and conversion work.
Keep any existing coverage in force until a replacement is approved and in place.
How Much
How much coverage do I need after 60?
Often less than at 40, but it depends on what remains: a mortgage, a spouse who relies on your pension, or tax at death. Our guide to how much life insurance you need works through it.
What's left in an RRSP or RRIF is generally taxed as income on the final return unless it passes to a spouse, and capital gains on a cottage, investments or company shares can add more. Your accountant can estimate that bill. Owners should also see corporate-owned life insurance.
When it may not fit
- No one depends on youYour income, pension or estate isn't needed by anyone
- Your estate can cover the costsSavings can pay debts, tax and final expenses
- The premium strains your budgetRetirement income comes first
Common Questions
Questions about life insurance after 60
Often, yes, though your choices narrow with age. Some insurers accept applicants up to 80 on some products. The amount and price depend on your age and health.
One decline doesn't close every door. Simplified issue may still be possible, depending on the questions, and guaranteed issue has no health questions at all.
Not always. Simplified and guaranteed issue policies don't require one. Fully underwritten applications may need a short paramedical exam, which can be done at home.
On many guaranteed issue policies, a death from natural causes in the first two years returns the premiums paid, sometimes with interest, rather than the full benefit. Accidental death is often treated differently. After two years, the full benefit generally applies.
Yes. Small permanent policies are often used for this. Compare the cost with simply setting the money aside, and look at underwritten options first if your health is good.
It depends on the need. It can make sense if someone would be left short or your estate would face a tax bill. If not, you may not need it.
We work with clients across Burlington, Oakville, Milton, Mississauga and Hamilton. Many first conversations start with a call to 289.339.8100.
Related Guides
Strategies that often work together
Whole Life Insurance
Lifetime coverage with cash value, and who it fits.
Read the guideHow Much Life Insurance Do I Need?
A clear method for working out your coverage, with an illustrated example.
Read the guideCritical Illness Insurance
A lump sum on diagnosis of a covered serious illness, and how it differs from life insurance.
Read the guideThis information is general in nature and is not tax, legal, accounting, insurance or investment advice. It is based on current Canadian tax legislation, which can change. Any strategy should be designed and reviewed with your accountant and legal advisors based on your circumstances. Eligibility ages, amounts, health questions and waiting periods vary by insurer and policy; the policy contract governs.
Life insurance over 60 in Burlington, Oakville, Milton, Mississauga and Hamilton
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