Life insurance for seniors doesn’t have to be expensive, especially if you know how to compare your options. Many Canadian seniors are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. 

In fact, a 2024 report by LIMRA shows that 57% of Canadians now have life insurance, reflecting a steady rise in coverage since 2019. As demand grows, insurers continue to offer competitive life insurance rates for seniors. There are affordable solutions, even if you’re over 60, 70, or even 80.

In this guide, we’ll explore the cheapest life insurance options for seniors, compare popular policy types, and share tips on how to make your policy affordable.

Why do seniors need life insurance?

Even in retirement, life insurance remains a smart financial tool for Canadian seniors. It helps cover end-of-life costs, protect loved ones, pay off any mortgage or loans and ensure your legacy lives on.

• Covering final expenses: Life insurance for seniors helps pay for funeral expenses, medical bills, and outstanding debts, reducing financial stress on the family
• Supporting dependents or leaving a legacy: Affordable senior life insurance ensures financial security for a surviving spouse, children, or grandchildren, while allowing you to leave an inheritance
• Protecting retirement savings from unexpected costs: Senior life insurance prevents dipping into RRSPs, pensions, or savings for unexpected expenses like medical care
• Paying off remaining mortgages or loans: Many seniors still carry mortgage or loan balances; life insurance can cover these obligations and protect assets
• Charitable giving: Whole life insurance for seniors can fund donations to causes you care about, leaving a lasting impact
• Covering probate fees: Life insurance can pay probate fees and taxes on deemed disposition, so heirs receive their full inheritance without financial strain

Which factors influence the cost of life insurance for seniors?

Not all life insurance plans cost the same for seniors in Canada. Several factors determine how affordable your policy will be, from your age, health profile and smoking status to the type of coverage you choose and underwriting type.

• Age and health profile: Younger and healthier seniors usually qualify for the lowest life insurance rates in Canada
• Coverage amount and term length: Shorter term life insurance policies and lower coverage amounts cost significantly less than permanent plans
• Underwriting type: Fully underwritten life insurance (with medical exams) is typically the cheapest option for healthy seniors, while no-medical plans cost more
• Optional riders: Adding features like critical illness or accidental death benefits can increase premiums, so stick to essentials to keep costs low
• Smoking status: Non-smokers get cheaper senior life insurance rates, as smoking dramatically raises premiums
• Policy type: Term life insurance for seniors is usually the most affordable; whole life and guaranteed issue policies are more expensive
• Gender and lifestyle: Women and those with healthy habits (no alcohol abuse, active lifestyle) often enjoy lower rates

Which are the cheapest life insurance options for seniors?

Finding the right life insurance plan as a senior doesn’t have to be expensive. Many Canadian insurers offer affordable solutions tailored to different needs, whether you require temporary protection, lifelong coverage, or quick approval without the need for medical exams.

Some of the cheapest life insurance options for seniors in Canada include Equitable Life, iA, Sun Life, Canada Life and Manulife.

1. Equitable Life: Cheapest life insurance for non-smokers

Equitable Life delivers some of the most affordable life insurance rates in Canada, especially for non-smoking seniors. Its policies combine affordability with strong value through dividend options and estate planning benefits.

Key features of Equitable Life

• Offers low premiums for non-smokers and healthy seniors
• Provides participating whole life insurance with cash value growth
• Delivers consistent dividends through its mutual ownership model
• Flexible plans for long-term estate and legacy planning
• Available simplified issue options for easier approval

2. iA Financial: Cheapest for no-medical plans

If medical exams are a concern or health conditions make approval difficult, iA Financial’s Access Life plan offers a stress-free alternative. This plan requires no medical tests, only a short health questionnaire, while still offering a range of coverage options. 

Seniors can choose between term and permanent plans, making it easy to align protection with financial goals. Quick approval makes it an excellent option for those who value convenience and speed without compromising coverage.

Key features of iA

• No medical exams required, just a simple health questionnaire
• Available up to age 80, making it accessible for older seniors
• Offers both term and permanent coverage, giving flexibility to choose the best fit
• Perfect for those with pre-existing conditions or who want quick, hassle-free approval

3. Sun Life: Cheapest life insurance for high coverage values

For seniors seeking comprehensive, lifelong protection with significant coverage amounts, Sun Life’s Sun Par Whole Life policy stands out. This participating whole life plan not only guarantees lifetime coverage but also builds cash value and earns dividends over time, making it a strong financial planning tool. 

It’s best suited for seniors who have the means to pay higher premiums and want to maximize estate value for heirs or charitable giving. Full underwriting ensures competitive rates for those in good health.

Key features of Sun Life

• Participating whole life policy that allows policyholders to share in dividends
• High face amounts available, making it suitable for those with substantial estate planning needs
• Long-term growth through dividends, which can enhance cash value and death benefit over time
• Requires full medical underwriting, offering the most favourable rates for healthy applicants

4. Canada Life: Cheapest life insurance for estate planning

When the goal is to leave a meaningful legacy, Canada Life’s Estate Select is a top contender. This plan combines guaranteed lifetime coverage with cash value accumulation and flexible premium options. 

It’s tailored for individuals or couples who want to transfer wealth efficiently while minimizing taxes on deemed disposition and probate fees. One of its unique features is the ability to split joint coverage into two individual policies without new medical exams.

Key features of Canada Life

• Participating whole life insurance with guaranteed cash values, ensuring lifelong security
• Designed for tax-efficient wealth transfer and estate planning strategies
• Premium options include limited pay periods (such as 10 or 20 years), which allow you to pay off the policy faster
• Joint coverage can be split into individual policies without medical evidence, offering future flexibility

5. Manulife: Cheapest life insurance for quick approvals

If you need life insurance quickly, Manulife’s CoverMe No Medical plan delivers one of the fastest application processes in the market. This policy offers instant online approval for many applicants, making it ideal for seniors who need immediate coverage for final expenses or leaving a small legacy. 

Key features of Manulife

• Simple online application with instant decisions for most applicants
• Coverage up to $75,000, designed for seniors aged 50–75
• No medical exams or lab tests, ensuring a fast and easy process
• Perfect for final expense coverage or leaving behind a modest inheritance

Secure peace of mind that lasts a lifetime.
Our tool helps you estimate whole life insurance coverage that builds value while protecting your loved ones.

Can seniors over 70 get affordable life insurance?

Yes, seniors over 70 can still get affordable life insurance in Canada, though options are more limited and premiums are higher than at younger ages. The most budget-friendly choices include simplified issue and guaranteed issue policies, which don’t require medical exams and offer quick approval. 

Coverage amounts are usually smaller, often ranging from $5,000 to $100,000, making them ideal for final expenses or leaving a small legacy. Comparing quotes and choosing a shorter term or permanent plan with lower coverage can help keep costs down.

Is term or whole life insurance better for seniors?

For seniors, the choice between term and whole life insurance depends on needs and budget. Term life insurance is usually cheaper and ideal for short-term needs like covering debts or providing income for dependents. However, it expires after a set period. 

Whole life insurance offers lifelong coverage with a cash value component, making it better for leaving a legacy or covering final expenses. Seniors who want permanent protection and don’t mind higher premiums often prefer whole life, while those on a tight budget typically choose term coverage.

Are no-medical life insurance policies cheaper for seniors?

No-medical life insurance policies are generally not cheaper for seniors. These plans skip medical exams, making them convenient for those with health issues, but insurers take on a higher risk. As a result, premiums are usually higher than fully underwritten policies that require health checks. 

However, for seniors with pre-existing conditions or those who want fast approval, no-medical policies can still be the most practical choice despite the higher cost. If affordability is the main concern, a fully underwritten policy often offers the lowest rates for healthy seniors.

Does smoking affect life insurance rates for seniors in Canada?

Yes, smoking significantly increases life insurance rates for seniors in Canada. Insurers classify smokers as higher-risk applicants because of health complications linked to smoking, such as heart disease and cancer. As a result, premiums can be 50% to 100% higher than for non-smokers. 

Some companies may offer more competitive rates after you’ve quit smoking for at least 12 months and can prove a tobacco-free lifestyle. Simplified/guaranteed issue policies may have less severe smoker rate differentials compared to fully underwritten plans, but premiums are still higher for smokers.

How can seniors lower the cost of life insurance premiums in Canada?

Seniors in Canada often face higher life insurance premiums due to age and health factors, but there are practical ways to reduce costs. By making smart policy choices and improving personal risk factors, seniors can save significantly on premiums.

• Choose a smaller coverage amount: Selecting only the amount needed for final expenses or debts helps keep premiums low
• Opt for term life instead of permanent insurance: Term policies usually cost less than whole life insurance and work well for short-term needs
• Maintain good overall health: Seniors who stay healthy and pass medical exams often qualify for cheaper, fully underwritten policies
• Quit smoking to get non-smoker rates: Life insurance premiums can drop by up to 50% after being tobacco-free for 12 months
• Compare quotes from multiple insurers: Different companies offer different rates, so shopping around can lead to big savings
• Avoid unnecessary add-on riders: Extra features like accidental death or critical illness riders increase costs, so only choose essentials
• Apply for coverage as early as possible: Premiums rise with age, so applying earlier locks in a lower rate for the future