Life insurance gets more expensive and harder to qualify for as you age, but it does not become impossible. Healthy seniors can still buy term coverage from some insurers, and even seniors with serious health conditions can get guaranteed issue policies with no medical questions asked. The real question is not whether you can get coverage, but whether you need it. This guide covers both, as part of the wider set of life insurance guides.
Life Insurance Options for Seniors
| Type | Best For | Underwriting | Coverage | Trade-off |
|---|---|---|---|---|
| Term life | Healthy seniors needing temporary coverage | Full health questions, sometimes a medical exam | Largest amounts | Ends at the end of the term; renewal premiums are higher |
| Simplified issue | Seniors with moderate health concerns | Health questions, no exam | Smaller amounts | Higher premium per dollar than fully underwritten term |
| Guaranteed issue permanent | Seniors with serious health issues | None (acceptance guaranteed) | Small amounts | Highest premium per dollar; two-year waiting period |
| Final expense (burial) | Covering funeral costs only | Simplified or none | Small amounts | Sized for funeral costs, not income replacement |
Age limits, maximums and premiums differ from insurer to insurer. As one example, PolicyMe accepts term life applicants from 18 to 75, and its guaranteed issue policy offers up to $100,000 to applicants aged 18 to 70 and up to $50,000 from age 71.
Term Life Insurance for Seniors
Term life is still the lowest-cost option per dollar of coverage for healthy seniors. Premiums are based on your age when you apply, so they rise with every year you wait, and fewer insurers offer new term policies at older ages. What term coverage costs at each age is covered in life insurance costs by age; choosing a term length covers how long a term to buy.
Guaranteed Issue Whole Life
Guaranteed issue policies are the last resort for seniors who cannot qualify for any other coverage due to health conditions. Canada Protection Plan, a Foresters brand focused on no-medical and guaranteed acceptance coverage, is one example; its review covers its product tiers and graded benefit in detail. The trade-off is clear: no medical exam and guaranteed acceptance in exchange for lower coverage amounts, higher premiums, and a two-year waiting period for death from natural causes. If you die from natural causes in the first two years, your beneficiaries generally receive a return of the premiums paid under the policy terms, not the full death benefit.
| Feature | Details |
|---|---|
| Medical exam | None required |
| Health questions | None: acceptance is guaranteed |
| Typical coverage | Small amounts, with lower maximums at older ages |
| Waiting period | 2 years for death from natural causes; accidental death usually covered from the start |
| Premiums | Level (PolicyMe’s, for example, stay level and stop at age 100) |
| Best for | Seniors who cannot qualify for any other coverage |
Final Expense / Burial Insurance
Final expense insurance is designed so that your family is not left with funeral costs. It is a small permanent policy with simplified or no medical underwriting. What a funeral, burial or cremation costs is covered in funeral costs in Canada. If covering funeral costs is your main concern and you have no other significant debts, a small policy (or savings set aside) is often the simplest solution. The CPP death benefit is a one-time payment to the estate (or other eligible people) of a contributor who contributed long enough: $2,500, plus, for deaths since January 1, 2025, a top-up of $2,500 (up to $5,000) when the contributor never received a CPP or QPP retirement or disability benefit and left no spouse or partner eligible for a survivor's pension. It offsets part of the cost, although the estate of someone already receiving a CPP retirement pension gets only the basic amount.
When Seniors Need Life Insurance
The most common reason seniors buy life insurance is to protect a surviving spouse who depends on their pension or CPP/OAS income. When you die, your own CPP and OAS payments stop; a CPP survivor’s pension is smaller than a retirement pension (for benefits beginning in January 2026, a maximum of $904.59 a month for a survivor aged 65 or older, against a maximum retirement pension of $1,507.65), and some employer pensions reduce or stop paying to a surviving spouse. If your partner would face a genuine income shortfall, life insurance fills that gap. Other reasons include covering an outstanding mortgage, equalizing an inheritance among children, or leaving a charitable legacy.
| Situation | Typical Coverage | Type |
|---|---|---|
| Surviving spouse depends on your pension/income | The income gap, for as long as it lasts | Term or whole life |
| Outstanding mortgage or debts | Amount owed | Term life |
| Cover funeral/final expenses | Expected funeral costs | Final expense or guaranteed issue |
| Equalize inheritance (e.g., one child gets house, others get insurance) | Value of assets to equalize | Whole or term life |
| Leave a legacy/charitable gift | Desired amount | Whole life |
| Business succession | Business value | Term or whole life |
| Replace income lost when your CPP/OAS stops | Income gap amount | Term life |
When Seniors May Not Need Life Insurance
If nobody depends on your income, your debts are paid off, and you have enough savings to cover final expenses, life insurance at this stage of life may be an unnecessary cost. Retired Canadians with a pension that continues to a surviving spouse, no mortgage, and a healthy RRSP or TFSA balance are often in this position. Dropping a policy you no longer need frees those premiums for retirement spending. If the policy is whole life, cashing out a whole life policy covers the tax on surrender and the alternatives.
| Situation | Why Insurance May Not Be Needed |
|---|---|
| No surviving dependants | No one relies on your income |
| Sufficient savings and assets | Estate can cover all costs |
| No outstanding debts | Nothing to pay off at death |
| Company pension continues to spouse | Income is already replaced |
| Funeral pre-paid | Final expenses already covered |
Alternatives to Life Insurance for Seniors
Life insurance is not the only way to address final expenses or provide for a surviving spouse. A TFSA with a named beneficiary pays out the value at death to that beneficiary without tax (only growth after the date of death is taxable), which makes it a flexible self-insurance tool. Pre-paying your funeral fixes the price of the arrangements you choose. And if both spouses are alive and healthy, a joint last-to-die policy covers both lives but only pays out after the second death, at a lower premium than a single-life policy for the same amount; life insurance in estate planning covers how these policies fund tax at the second death.
| Alternative | How It Works | Pros | Cons |
|---|---|---|---|
| Pre-paid funeral plan | Pay a funeral home in advance | Fixes the cost, no medical exam | Tied to one provider; cancellation and refund rules are set provincially (Ontario allows cancellation with a refund, subject to a capped fee after the 30-day cooling-off period) |
| TFSA as death benefit | Designate a beneficiary or successor holder on the TFSA | No premiums, flexible | Depends on savings amount |
| Joint last-to-die policy | Pays out when the second spouse dies | Lower premium than a single-life policy for the same amount | Only pays after both die |
| Critical illness insurance | Lump sum if diagnosed with a covered illness | Can use while alive | Costs more at older ages, limited conditions |
| Self-insure | Build savings to cover final expenses | No premiums | Requires discipline and sufficient assets |
How to Apply for Life Insurance as a Senior
An independent insurance broker can compare several insurers, which matters more at older ages because insurers differ in the ages and health histories they accept. A broker can also help you avoid paying for guaranteed issue when you might qualify for cheaper simplified issue or term coverage.
| Step | Details |
|---|---|
| 1. Assess your needs | Debt, funeral costs, income replacement, legacy goals |
| 2. Check employer/group coverage | Some retirees keep group benefit options |
| 3. Compare quotes from several providers | Compare term, simplified issue, and guaranteed issue |
| 4. Consider a broker | Independent brokers can shop across multiple insurers |
| 5. Disclose health honestly | Misrepresentation on the application can lead to a denied claim or a cancelled policy |
| 6. Review beneficiary designations | Keep up to date as circumstances change |
| 7. Review periodically | Needs may change as debts are paid off |
The Bottom Line
Not every senior needs life insurance, and premiums for coverage you do not need are money that could go toward retirement. But if a spouse depends on your income, you have outstanding debts, or you want to make sure your family is not left with funeral costs, the right policy fills that gap. A common approach is to start with term if you are healthy and consider simplified or guaranteed issue if you are not, comparing quotes from several providers or through an independent broker.
Related Articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 30, 2026. How we check facts.
- Government of Canada: CPP: How much you could receive
- Government of Canada: Cpp disability benefit
- Government of Canada: Canada Pension Plan – Monthly payment amounts
- Government of Canada: CPP: Death Benefit
- PolicyMe: PolicyMe Term Life Insurance Product Summary | PolicyMe
- PolicyMe: Guaranteed Issue Life Insurance: No Medical Exam | PolicyMe
- thebao.ca: Consumer Rights - Bereavement Authority of Ontario