There is a lot more advertising for life insurance now which is spurring an interest in many who are getting up in age. Some are asking the question as to what age limit can one buy life insurance?

Do Life Insurance Companies Care About Age?

Age

There are a lot of things that insurance companies care about. When it comes to selling their insurance products and their risk factors. Age is one of these. The longer an individual lives, the more money an insurance company can collect from their premiums. Each year their risks are reduced. When they insure people that are getting older than the age gap closes.

It is not unusual when one looks at the many different websites for insurance to see what some of their main focuses are. Most often there will be age eligibility applied to each insurance product. Also, most often there will be specific mention of non-smokers.

Age Factors and Insurance Product Types

The concern for age is also going to be determined by the type of insurance being bought. Insurance criteria begin to change according to age as well.  The insurance products for the elderly will go by different names such as;

  • Guaranteed Issue Life Insurance
  • Simplified Issue Life Insurance
  • No Medical Life Insurance
  • Funeral Insurance

Some of the names are descriptive but also can be deceiving.

Guaranteed Life Insurance

Some believe that no matter what their age insurance with this name is going to insure them. Most often there will be an age cap even on this insurance.   Some examples are;

Guaranteed Issue Life Insurance: for ages 45 to 80. Coverage up to $25,000.

Guaranteed Acceptance Life Insurance: For ages 61 to 75. Coverage between $5,000 to $25,000.

Guaranteed Life Plus: For those between the ages of 40 to 75. Coverage up to $50,000. for basic

Life Insurance for Seniors Over Eighty in Canada

funeral

It is pretty difficult for those over the age of eighty to buy new life insurance. Up to the age of eighty, there are some options to buy limited life insurance that is often called funeral expense insurance. Although there may be a few insurance companies that will offer insurance up to the age of 85. This is often referred to as specialty insurance.

Term Life Insurance For Seniors in Canada

Insurance offerings can be a little misleading. Some will see insurance such as Term to Age 100 Life Insurance. This doesn’t mean that one can buy life insurance up to the age of 100. It means that there are term life insurance products that are payable up to the age of 100. After the 100th birthday, there are no more premiums, but the policy is still in effect.

Cost of Life Insurance for Seniors

Like any other life insurance, the cost is going to vary. For seniors, the big factor is going to be the amount of insurance they want to buy. One can buy a limited amount of insurance to just cover their funeral expenses. Or, there are others who want to buy a lot more coverage. For them, it may be so debt will be covered upon the death of the insured.

There is opportunities for seniors to buy high-value life insurance. For example for those who want coverage up to $500,000. Still with no medical requirements. This offer may apply for those up to the age of eighty. What will have to be given strong consideration is the cost of the premiums.

Everyone has a different need when it comes to their life insurance. This is what makes life insurance personalized.

No Medical Life Insurance Canada

Medical

One of the biggest stumbling blocks for older people is their health when it comes to life insurance. However, there are many insurance companies who offer coverage with no medical required. These policies can vary. Some will say no medical exam required. But, will still ask health-related questions on their application.

Others will not ask medical questions or require any medical exam or blood or urine tests. This type of insurance usually falls into the guaranteed type of insurances.

Being Cautious When Buying Senior’s Life Insurance

It is important to think through the purchasing of life insurance no matter what one’s age is. A good example is where some bought life insurance several years ago. Now they are getting up in age, and the premiums are increasing. They are no longer affordable.

Seniors have to have a clear picture of why they want to buy the life insurance. Many want it to just cover the cost of their funeral. So this cost is not a burden for their loved ones. They need to determine;

How much insurance they feel is needed to cover the cost of a funeral.

What will be the cost of the premiums?

Also, they need to consider what the stats say about life expectancy. People are living longer. It means they will be paying premiums longer. So, the senior insurance shopper needs to consider this. Nobody can predict their death. But life insurance companies rely on statistics to help reduce their risks. So why shouldn’t insurance shoppers do the same?

  • Currently, for Canada, the overall age expectancy is 81 years of age.
  • For Males, the estimated life expectancy is 79.
  • Women life expectancy is 84.

However, these vary by province and territories

Should Seniors Shop For Insurance?

Seniors have every right to shop for insurance just like anyone else does. They have some great options to do so. Once they know what their personal wants and needs are for insurance, they have a starting point.

Seniors can access the quote comparison sites and gather several quotes to make a comparison. Insurance for seniors is a personalized product. Although the various plans and costs will be similar in some ways. Still, insurance companies are competitive. This is what makes it worthwhile doing some insurance quote comparison shopping.

Resources

https://lifc.ca/guaranteed-issue-life-insurance.php
https://www.cpp.ca/no-medical-simplified-issue-life-insurance/no-medical-guaranteed-acceptance-permanent-life-insurance/
https://www.bmo.com/insurance/life-insurance/guaranteedlifeplus
https://www.funeralexpenseinsurance.ca/
https://specialtylife.ca/seniors-life-insurance.php
https://www.thestar.com/business/personal_finance/insurance/2012/07/08/seniors_life_insurance_policy_a_costly_mistake.html
https://www.disabled-world.com/calculators-charts/ca-lifespan.php
https://www.myownadvisor.ca/life-insurance-seniors-make-sense/