How life insurance plans are different across Canada

Life insurance is a bit different from other forms of insurance, like car insurance, because there are no significant provincial regulations that govern how each life insurance company operates across Canada. What does influence life insurance plans from province to province, however, is ownership. There are, essentially, five groups of insurers across Canada (The big 3: universal, independent, banks, and other), and the type and size of each company has an impact on the type of coverage you get.

What are the four types of seniors life insurance?

Beyond determining your insurance provider based on its coverage model, it is also important to look for the type of coverage that will best suit your needs when you are looking for life insurance for seniors in Canada. The four types of life insurance for seniors over 70 include: standard life insurance for seniors, rated life insurance for seniors over 70, simplified issue life insurance for seniors, and guaranteed issue no medical life insurance for seniors in Canada.

1. Standard life insurance for seniors over 70 – the cheapest policy, standard life insurance for seniors offers seniors over 70 a maximum coverage of between $3,000,000 and $5,000,000. There is a medical test and health questionnaire required, and only some non-serious pre-conditions are allowed.
2. Rated life insurance for seniors over 70 – More expensive than standard life, rated life insurance still offers seniors over 70 a maximum coverage of between $3,000,000 and $5,000,000, but it allows some average pre-conditions (e.g. particular types of diabetes, non-serious heart disease, etc.). A medical test and long health questionnaire are required.
3. Simplified issue no medical life insurance for seniors over 70 – More expensive than standard life and with a lower face value, simplified issue offers maximum life insurance coverage of $50,000 to $300,000 for seniors over 70 in Canada. No medical is required; however, a short medical questionnaire will need to be answered. This type of coverage allows for more pre-conditions, even allowing advanced pre-conditions in some cases.
4. Guaranteed issue no medical life insurance for seniors over 70 – This insurance policy is the most expensive and offers the lowest benefit (up to $25,000); however, it does not require a medical test or health questionnaire to apply, and all pre-conditions are allowed.

Rates for people without health pre-conditions

Just because you are applying for seniors life insurance doesn’t mean your rates and premiums will be the same across the board. There are a number of factors that can contribute to life insurance rates for seniors, including age group, gender, smoking habits, and medical health. If you are in good health and don’t have a history of smoking or drinking heavily, you could be eligible for the cheapest life insurance rates for seniors and the highest coverage. For instance:

• A 65-year-old woman who is a non-smoker, is not overweight, and has no significant health preconditions could be eligible for standard life insurance for seniors ($25,000 coverage starting from $23/month), simplified issue no medical insurance for seniors ($25,000 coverage starting from $30/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $153/month).
• A 65-year-old man who is a non-smoker, is not overweight, and has no significant health preconditions could be eligible for standard life insurance for seniors ($25,000 coverage starting from $32/month), simplified issue no medical insurance for seniors($25,000 coverage starting from $42/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $217/month).
• A 70-year-old woman who is a non-smoker, is not overweight, and has no significant health preconditions could be eligible for standard life insurance for seniors ($25,000 coverage starting from $40/month), simplified issue no medical insurance for seniors($25,000 coverage starting from $52/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $213/month).
• A 70-year-old man who is a non-smoker, is not overweight, and has no significant health preconditions could be eligible for standard life insurance for seniors ($25,000 coverage starting from $51/month), simplified issue no medical insurance for seniors($25,000 coverage starting from $80/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $326/month).

Insurance premiums for seniors with health pre-conditions

If you do have health pre-conditions, you aren’t out of luck. You may still be eligible for the best life insurance rates for seniors over 80, depending on your age group, gender, and habits (smoking and drinking). For instance:
• A 65-year-old woman who is a non-smoker and has average health preconditions (high blood pressure/heart condition) could be eligible for rated life insurance for seniors ($25,000 coverage starting from $41/month), simplified issue no medical insurance for seniors ($25,000 coverage starting from $30/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $153/month).
• A 65-year-old man who is a non-smoker and has average health preconditions (high blood pressure/heart condition) could be eligible for rated life insurance for seniors ($25,000 coverage starting from $56/month), simplified issue no medical insurance for seniors($25,000 coverage starting from $42/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $217/month).
• A 70-year-old woman who is a non-smoker and has average health preconditions (high blood pressure/heart condition) could be eligible for rated life insurance for seniors ($25,000 coverage starting from $69/month), simplified issue no medical insurance for seniors ($25,000 coverage starting from $52/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $213/month).
• A 70-year-old man who is a non-smoker and has average health preconditions (high blood pressure/heart condition) could be eligible for rated life insurance for seniors ($25,000 coverage starting from $89/month), simplified issue no medical insurance for seniors ($25,000 coverage starting from $80/month), or guaranteed issue no medical insurance for seniors ($25,000 coverage starting from $326/month).

How to lower life insurance rates for senior citizens

1. Excellent Health
If you are looking at life insurance policies for seniors and don’t smoke or drink excessively, aren’t overweight, and have no previous record of certain serious illnesses, you have a greater chance of being eligible for cheaper insurance – up to 35 per cent savings on premiums!

2. The Last-to-Die Coverage
This policy is only required to pay a benefit to the policy’s beneficiary once, after the death of the spouse, and that results in a lower life insurance premium for seniors. For instance, a policy for two spouses (aged 65) comes with a price that is similar to a single policy for a male policyholder who is aged 58.

3. Comparing the market
As you age, life insurance for seniors becomes more expensive because your rates continue to increase with your age. That means it is worthwhile to compare rates across several insurers to ensure you are getting the best one—it could save you hundreds of dollars annually, and those savings could continue to grow over time.

Conclusion

If you are looking for life insurance policies for seniors, no matter your age or level of health, the best way to save money is to work with an experienced insurance broker, one who can compare the market for you using their experience navigating life insurance policies for seniors to find the best policy available for your needs. Contact us today to find out more.

Author's Bio: 

I'm a passionate writer, who is deeply involved with financial and medical topics.