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How much does life insurance cost for a 60-year old?

by Mark Cluett
7 min read

In their sixties, most Canadians have their eyes towards retirement and are wrapping up their remaining working years. In all likelihood in their sixties, their mortgage payments are coming to a close, the children have left the family home or are having children of their own, and it’s time to settle into the life they’ve so meticulously built for themselves and their family. 

Assuming this is a typical Canadian family situation, it’s possible they would be through the riskiest financial period of their lives and might have limited need for life insurance in their sixties. But, many Canadians are not typical and their unique lives and needs might still require significant financial protection depending on their circumstances. 

Regardless of your situation, and whether you are adding on to or augmenting your existing policies, or shopping for life insurance for the first time, it’s good to know the basics and get a feel for how much term life insurance costs for a 60-year old.

Quick hits

Jump to the following sections of this article:

Do I need life insurance in my 60s?

As we started off saying, your life insurance needs may not be that grand at 60 years of age or older. You may only have a few years of mortgage payments left, no dependents, and enough retirement savings to carry you through the rest of your years. However, not all Canadians fit into this idyllic scenario.

If you’re still counting on your income to pay down a mortgage, supporting a partner of any age, and planning on contributing to the education costs of your children or grandchildren, you may still be in need of life insurance in your sixties. In another instance, if you traditionally counted on group benefits to satisfy your life insurance needs, you’ll soon lose that benefit if you plan on retiring

And, if you have already purchased life insurance earlier in life and are still paying those premiums, your needs may have evolved now that you are in your sixties. Whether that means replacing a policy that has become significantly more expensive at renewal, or adding to or replacing an inadequate policy that no longer suits your situation – there is no shortage of scenarios where a 60-year old needs life insurance.

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Can a 60-year-old get life insurance?

Of course! Barring any extreme health scares or conditions, it’s completely possible to obtain life insurance including the traditionally underwritten type of life insurance in your sixties. It’s true, you won’t get the same rates as when you were a whippersnapper in your 20s and 30s, but a 60-year old in good health can still secure a reasonable life insurance rate. This is something you may want to take advantage of before your family doctor starts adding preventive medical care as you hit the slippery side of 60. While taking a daily pill for creeping cholesterol or heart concerns is by no means a medical emergency at this age, it can still affect your ability to get insured at a reasonable rate.

Most insurance companies will however no longer give you a free pass in your 60s. Applying for traditional life insurance policies will most likely require a medical exam, so insurance companies can better assess your health risks. The bad part: no one likes needles. The good part: once you clear the medical, your life insurance rates will be lower than a no-medical policy (which we’ll explain further below).

What if I don’t qualify for life insurance due to a medical condition? 

If you happen to develop any health concerns while covered under a previous policy, you may want to investigate if there are options available within your existing coverage, or even asking a licensed insurance advisor to guide you through more appropriate plans you may want to purchase.

Many life insurance companies in Canada now offer alternative no-medical life insurance options for those that are unfortunately living through a health condition. You just need to have knowledgeable insurance advisors with access to a broad range of no-medical life insurance products that suit your unique medical needs. Luckily, we know exactly where you can find them.

What is the best life insurance for a 60-year old?

A 60-year old in good health has access to various life insurance products available in Canada. The best life insurance for a 60-year old depends on each person’s individual needs. As a 60-year old, if you wanted coverage for temporary needs, such as covering last few years of your mortgage or had a budget to work within, then term life insurance is the best life insurance product for you. But, if you wanted life insurance for permanent needs – such as allow for efficient transfer of assets to your children or help pay for funeral expenses – then go for whole life insurance.

How much does term life insurance cost for a 60-year-old?

As we’ve written before, insurance premiums are based on many factors such as your age, gender, smoking status, lifestyle, and overall health. With everything equal – we’ve calculated the numbers from 16 of the best Canadian life insurance companies to determine the average cost of life insurance on a 20-year term, divided by smoking status and gender.

For a male non-smoker, $250,000 worth of coverage starts at just over $226 per month at age sixty and rises from there with age. Smoking raises the premium to $471 and keeps that trend going up to age 69.

Life Insurance Premiums – Male, Non-Smoker, 20-Year Term

Age$100K$250K$500k
60$97$226$393
61$110$252$468
62$121$278$531
63$134$308$593
64$146$341$652
65$164$376$716
66$203$420$785
67$220$459$857
68$239$502$936
69$260$548$1,022

Life Insurance Premiums – Male, Smoker, 20-Year Term

Age$100K$250K$500k
60$199$471$833
61$219$558$1,003
62$238$596$1,088
63$258$636$1,181
64$274$668$1,276
65$323$711$1,373
66$356$767$1,458
67$380$811$1,545
68$405$855$1,638
69$433$885$1,736

*Representative values, based on regular health

The story is similar for women in their sixties; initial rates are lower than men’s at this age ($151), and smoking continues to almost double premiums.

Life Insurance Premiums – Female, Non-Smoker, 20-Year Term

Age$100K$250K$500k
60$64$151$284
61$74$169$320
62$83$188$358
63$93$209$400
64$100$233$446
65$125$254$487
66$137$282$533
67$151$306$580
68$163$333$630
69$177$362$685

Life Insurance Premiums – Female, Smoker, 20-Year Term

Age$100K$250K$500k
60$122$269$522
61$135$319$617
62$147$349$675
63$160$382$740
64$173$407$807
65$198$441$878
66$220$495$968
67$242$531$1,037
68$264$571$1,107
69$289$613$1,181

*Representative values, based on regular health

These are rough prices based on representative data and will still change depending on factors like health and medical exam results, smoking status (not just cigarettes), family medical history,  and more. You may also want a higher benefit amount or a shorter term depending on your financial situation, life insurance coverage needs, and all the other things that accompany life in your sixties.

Only you know how much coverage you need and can afford, but these numbers give a holistic view of what the average 60-year old might pay for such coverage.

How do I buy life insurance in my 60s?

You now have an idea of what term life insurance might cost as you approach retirement age – but everyone’s situation is different. If you have 5 minutes, you can figure out your needs and get instant, custom term life insurance quotes with PolicyAdvisor’s life insurance calculator

And if you still need help with your coverage needs, our licensed advisors are always here to chat.

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