Life Insurance for Seniors Over 70: Is It Worth It?

Last updated Jan 16, 2026

Written by

Ben Nguyen

Content Director

Turning 70 can be a significant milestone. It is the time that priorities tend to shift from career achievement and family growth to enjoying retirement and focusing on your health. However, aging Canadians still have financial obligations to consider even as life slows down. Many Canadians believe it’s too late or too expensive to obtain coverage at this age, but that’s often not the case.

This guide provides clear, straightforward information specifically for Canadians aged 70 and older. Arm yourself with information to make the soundest decision for your financial future. While risks increase with age, senior life insurance can still be attained with proper planning.

Why Consider Life Insurance After 70?

The first question many aging Canadians have is, why bother with life insurance after 70 years old? It is a fair query. Once you reach your golden years, priorities tend to move from building your career and assets to enjoying retirement. Your children are likely grown, and you may have downsized your home and possessions.

With retirement income and savings available, it can understandably seem that life insurance is no longer necessary. However, while needs evolve in your 70s, there are still four sound reasons to strongly consider maintaining or acquiring coverage:

Outstanding Debts and Expenses

The Canadian Financial Capability Survey shows that 73.2 % Canadians have some form of debt to manage. The most common include:

• Mortgages: Many seniors renew or refinance later in life.
• Lines of credit and loans: Used to finance major purchases or consolidate debt.
• Credit card balances: Day-to-day usage can accumulate balances.
• Car loans: Vehicles may be financed for retirees.
• Personal debts: Owed to friends and family members.

When you pass away, these debts do not automatically disappear. Instead, they become obligations possibly passed on to a surviving spouse or estate. Life insurance provides funds earmarked to cover remaining financial commitments, preventing loved ones from inheriting the burden.

In addition to debts, final expenses like funeral costs and taxes must be considered. With the limited retirement income typical for most Canadians, these obligations can severely impact budgets for seniors. The tax-free payout from a life insurance policy helps cover substantial final costs when necessary.

Providing for a Spouse or Dependent

Entering your 70s does not necessarily make you financially independent. Plenty of older Canadians still provide some level of support to family members. If you have a spouse, partner, or dependent child still relying in part on your income, life insurance is critical. Life insurance provides a lump sum to replace that lost income, ensuring your surviving partner can maintain their standard of living.

Estate Planning and Inheritances

Even in retirement, prudent financial planning includes properly transferring your assets and wealth to the next generation. This is where life insurance powerfully supplements estate planning for seniors. Life insurance benefits are not subject to income taxes, allowing you to pass on more of your estate directly to beneficiaries.

Life insurance helps in several estate planning aspects:

• Creating an Inheritance: You can leave a guaranteed, tax-free inheritance to your children, grandchildren, or other loved ones.
• Equalizing an Estate: If you have an asset that’s difficult to split, like a family business or cottage, you can use life insurance to provide an equivalent cash value to other beneficiaries, ensuring fairness and harmony.
• Charitable Giving: You can name a registered charity as your beneficiary, leaving a meaningful final gift to a cause you care about.

In your senior years, take advantage of life insurance to efficiently transfer your wealth and assets per your wishes.

Peace of Mind

Even beyond the practical financial protections, life insurance can provide general peace of mind as you navigate advanced age. Knowing your passing will not overly burden the family with expenses or debts allows you to focus on enjoying your remaining years. If you have a dependent family, you gain comfort knowing you have secured their financial future in your absence.

Many Canadians wish to leave an inheritance or gift behind as a final act of financial support for loved ones. Acquiring life insurance helps make this possible. In your senior years, the reassurance and satisfaction life insurance provides is an intangible benefit beyond just the death benefit alone.

What Are the Policy Options for Seniors Over 70?

Once you decide to explore life insurance after 70, the next step is determining what types of policies are available at your age. The good news is Canadians over 70 still have multiple options for coverage. However, health risks and limitations on policy lengths do impact what is accessible. Let’s explore the key policy types seniors can consider:

Term Life Insurance

Term life insurance provides affordable coverage for a set period of time, or “term.” It pays a lump-sum death benefit to beneficiaries only if you pass away during the term. Given the temporary coverage, term life premiums are substantially lower compared to permanent options. However, the policy does not build cash value.

For seniors, 10 or 15-year terms are the general maximum lengths available. Once over 70, most insurers will not issue policies for terms longer than 15 years due to higher mortality risk. Still, 10 to 15-year terms do allow older Canadians to put temporary coverage in place for final expenses and debt obligations.

Term life insurance enables seniors to affordably secure temporary coverage well into their 70s and 80s if health permits.

Permanent Life Insurance

Unlike term insurance, permanent life insurance is intended to provide lifelong coverage without an expiration date. Premiums and guaranteed death benefits with permanent policies generally remain the same over your lifetime. However, permanent policies do cost significantly more than term life.

The main types of permanent life insurance available include:

Whole Life: With whole life insurance, premiums stay level and death benefits remain the same throughout your lifetime. It also builds cash value that you can borrow against if needed. Whole life is the most traditional form of permanent life insurance.

Universal Life: Universal life also offers permanent, lifelong coverage. However, with this type of policy, you have more flexibility to adjust premium payments up or down over time. It builds cash value that you can tap if necessary.

Guaranteed Life: For older seniors who may not qualify medically for other policies, guaranteed life insurance guarantees approval. No medical exam is required, but death benefits are smaller, typically ranging from $5,000 to $25,000. Premiums are also higher with guaranteed life.

Term to 100: Provides permanent coverage with level premiums until age 100, after which premiums increase.

For Canadians over 70 who are still in good health, permanent policies allow you to secure lifelong coverage. The costs are higher but provide long-term safety. Guaranteed life insurance is also an option for those unable to qualify for other policies.

What Factors Determine The Cost of Life Insurance for Seniors Over 70?

Once you narrow down the policy options accessible over 70, the next step is assessing what influences the premium costs. Life insurance rates become risk-based in your senior years due to age and health changes. Multiple individual factors affect what you will pay:

Age

Age is the most basic driver of insurance rates as you grow older. The average life expectancy in Canada is 82 years. Once into your 70s, every year you age reduces your projected lifespan and increases premium costs. The older you are when applying, the higher your rates will be all else being equal. Waiting to get coverage only becomes more expensive over time.

Gender

Gender is another standard rating factor for life insurance at all ages. Because women statistically outlive men in Canada, they also generally receive lower premium costs for comparable policies. However, gender gaps are closing as men improve longevity through healthier lifestyles.

Health Status

Your overall health becomes increasingly pivotal for life insurance costs as a senior. Life insurers will inquire about your medical history and require a paramedic exam in most cases. Any health conditions or risk factors you have, such as chronic illnesses, diseases, smoking, or obesity, will result in higher premiums. For underwritten policies, poor health can also lead to declined applications. Maintaining wellness helps control premium costs.

Family Health History

Not only will your personal health be assessed, but also your family health history. If close family members have passed away at younger ages due to illness, insurers will see you as a higher risk. They view family history as an indicator of your longevity potential. Adverse family health can mean paying higher life insurance rates.

Lifestyle

Your lifestyle factors also matter when assessing risk. Do you smoke or use tobacco products? This can significantly increase your premiums, along with health risks. What is your alcohol consumption like? Heavy drinking is a risk factor. Obesity, lack of exercise, high-risk hobbies like scuba diving, and other lifestyle choices also impact your rates.

Policy Type

The actual life insurance policy type you select impacts costs as well. As already discussed, permanent insurance is more expensive than term life as you pay for lifelong coverage. But also within types, policies with extra features or benefits involve higher premiums than basic options. All riders, such as accidental death or critical illness, boost your costs.

Coverage Amount

Lastly, the dollar amount of coverage you purchase certainly affects your premiums. The higher the death benefit, the more risk the insurer takes on. As such, larger death benefits equate to higher premiums. Buy only what you need rather than over-insuring.

Take time to understand how each of these factors applies to you and impacts the specific rates you will pay. In your senior years, being a lower-risk buyer is key to affordable premiums.

Cons of Getting Life Insurance in Your 70s

Purchasing life insurance after age 70 can provide valuable benefits but also has some potential drawbacks to consider.

• Higher premium costs: Premiums rise significantly for seniors based on age and health risk factors.
• Pre-existing condition limits: Most policies limit or exclude death benefits for some time periods if you pass away due to a pre-existing illness.
• Health requirements: Seniors must still undergo medical exams and health screens for underwritten policies. Those with severe health issues may be declined.
• Not always necessary: If financially secure, insurance may be an unnecessary added expense in retirement.
• Ongoing premium payments: Insurance requires an ongoing expense in retirement years when preferring to minimize costs.
• Risk of lapses: Failing to pay premiums due to financial limitations or cognitive decline risks losing coverage.

Overall, the value depends on your specific situation and need for coverage later in life. Discuss the pros and cons with a licensed advisor.

Evaluating If You Still Need Coverage After Age 70

Not all seniors necessarily need active life insurance coverage. Your personal financial situation and obligations should steer your decision:

• Examine Your Debts: Do you have any debts a surviving spouse or family member could inherit? Mortgages, personal loans, and co-signed liabilities should be covered to prevent transfer.
• Review any Dependents: Do you still financially support a partner, spouse, or dependent child in some capacity? Their needs must be considered should you pass.
• Weigh Final Expenses: At a minimum, will your assets cover a funeral, estate taxes, probate fees, and other costs? Life insurance can prevent loved ones from bearing these.
• Consider Estate Planning: Are there inheritances, estate taxes, or charitable gifts to fund? Life insurance can make these possible.
• Assess Peace of Mind: Even if financially secure, would coverage reassure you and provide peace of mind later in life? If so, insurance can be of great mental value.

Take an honest assessment of obligations. If any depend on you, insurance merits consideration.

Strategies for Finding Affordable Life Insurance for Seniors Over 70

Even with higher risk in your senior years, there are still techniques for keeping life insurance affordable beyond your 70s:

Shop Around Extensively

One of the best ways seniors can save is by getting quotes from at least 5 to 10 insurers for comparison. Rates for the same coverage can vary significantly across providers. Take time to gather multiple quotes.

Adjust Your Term Lengths

If considering term insurance, customize the term length to your needs and to secure lower rates. A 10-year term will cost less than a 15-year term. Reduce the length to what adequately covers your obligations.

Limit Your Coverage Amount

Carefully evaluate how much coverage you realistically need. Do not over-insure. Buy just enough to cover debts, final costs, and any dependents. Extra unused benefits only mean extra premiums.

Keep Health Risks Under Control

Do everything in your power to maintain wellness and manage conditions. Get health issues under control to avoid being rated as high-risk. Stop smoking, lose weight, and be physically active.

Improve Your Family History

While you cannot change your family health history, improving your personal health may offset it. For example, if your parents died young of heart disease, keeping your heart healthy can counter that risk.

Consider No-Exam Policies

Guaranteed life insurance requires no medical exam. While more expensive, forgoing the health check may make sense if you have pre-existing conditions. Shop around for best guaranteed issue rates.

Work With an Advisor or Broker

Consulting an independent broker or advisor gives you guidance plus access to policies across life insurance companies in Canada. An experienced agent can uncover savings tailored to you.

Take an active approach to managing costs. What you pay for coverage beyond your 70s remains heavily within your control.

What Should Seniors Over 70 Know When Purchasing Life Insurance?

Beyond the major steps covered above, be aware of these additional factors as you navigate shopping for and owning life insurance later in life:

Know Your Policy Grace Period

If you are ever unable to pay premiums on time, you typically have a grace period of 30 to 60 days to catch up before coverage lapses. Understand this window to avoid losing benefits.

Be Wary of Premium Increases Down the Road

While term policies lock in set premiums, permanent policies could see increased rates later depending on performance. Understand if this risk exists within the policy you choose.

Remember to Update Beneficiaries

It is essential to update beneficiaries after major life events like death of a spouse or child, divorces, or new grandchildren. Keep beneficiaries current.

Consider Long-Term Care Riders

Some policies allow attaching long-term care riders for extra benefits if you eventually need daily assistance. However, they add cost.

Know Your Conversion Options

With term insurance, you may be able to convert to permanent insurance without medical requirements before the term expires.

Understand Pre-Existing Condition Clauses

Most policies will not pay benefits right away for deaths due to pre-existing medical conditions. Be aware of exclusion periods that may apply.

Always consult your policy documents or advisor for assistance as needed. Do not let a lack of understanding lead to lost benefits.

Are You Ready to Explore Your Life Insurance Options After 70?

Reaching your 70s opens up additional planning around retirement, health changes, and financial protections. As we have covered in detail, life insurance remains a relevant discussion well into your older age, thanks to benefits like:

• Covering debts, taxes, and final costs
• Protecting dependents and spouses
• Funding estate planning and inheritances
• Providing peace of mind later in life

Today, more carriers provide policies for life insurance for seniors over 70. Options like term, permanent, and guaranteed life insurance offer flexible solutions. While the health impacts costs, you maintain control over many factors influencing premiums through healthy choices and smart shopping.

Check out our article Life Insurance Rates By Age Chart to see how rates increase each decade. Our mission is to make coverage affordable. So equip yourself with knowledge and get the optimal rate for your age :

• Best Life Insurance Costs for Ages 20-29
• Best Life Insurance Rates in Your 30s (Ages 30-39)
• Best Life Insurance Rates For Ages 40-49

FAQs on Life Insurance for Seniors Over 70

Article Sources:

1. Why is Life Insurance for Seniors Important? – https://www.tdinsurance.com/