Life Insurance Rates By Age Chart
Purchasing life insurance is an important financial decision for Canadians looking to protect their loved ones. As you shop for coverage, one of the most influential factors affecting policy premiums is your age. Life insurance rates typically rise as you get older, so it pays to understand how age impacts costs.
This guide examines how your age influences life insurance policy pricing in Canada. We’ll look at:
- How life insurance rates change as you age
- Average term and whole life insurance rates by age
- Other key factors determining your premiums
- Finding affordable coverage for your budget
- Frequently asked questions
Arm yourself with the knowledge to secure the most suitable life insurance protection for your needs and budget.
How Your Age Impacts Life Insurance Rates Chart in Canada
Age plays a pivotal role in calculating your life insurance premiums. As an applicant gets older, rates for new policies generally go up each year. This reflects the increased mortality risk associated with aging.
Life insurance companies price policies based primarily on the probability of paying out the death benefit. Since younger people are further from their life expectancy, they pose less risk to insurers and thus pay the lowest rates.
Premiums rise steadily as mortality risk increases. The older you are when applying for life insurance, the more you can expect to pay. Rates incrementally increase as age advances and the odds of passing rise.
Let’s examine how life insurance rates typically rise over the decades as longevity shortens.
Life Insurance Rates for Young Adults
Applicants in their 20s
People in their 20s are often just entering the workforce and may have limited financial obligations. They represent very low risk to insurers and can find quite affordable term life insurance policies. Monthly premiums may range from $20-40 for several hundred thousand dollars of coverage. Permanent life insurance is rarely needed for young adults in their 20s.
Full review: Best Life Insurance Costs for Ages 20-29
Applicants in their 30s
As financial obligations increase with mortgages, families, and expenses, the life insurance needs of 30-somethings rise as well. However, with good health, applicants in their 30s can still secure low-cost term life insurance nicely suited for 10-30-year terms. Monthly premiums for a few hundred thousand in coverage may run $30-50. Some permanent life insurance options also become more relevant for long-term family planning.
Full review: Best Life Insurance Rates in Your 30s
Middle-Aged Applicants See Rates Rise
Applicants in their 40s
By the 40s, term life insurance rates start seeing more significant increases with each year. A 40-year old may pay double the rate of a 30-year-old for an equivalent 20-year term policy. Permanent life insurance premiums also rise more rapidly through the 40s. However, healthy lifestyles can help curb the size of increases.
Full review: Best Life Insurance Rates For Ages 40-49
Applicants in their 50s
Life insurance rates continue rising through the 50s as health risks escalate past the half-century mark. Term policy premiums can potentially double compared to rates just 10 years younger. Permanent life insurance also grows more costly with larger upfront payments required. However, maintaining good health enables accessing coverage at reasonable rates.
Full review: Best Life Insurance Rates for Ages 50-59
Seniors Face Much Higher Rates
Applicants in their 60s
Entering the 60s sees life insurance rates rise dramatically, especially for term policies. While still available, expect to pay significantly higher premiums at this life stage versus earlier years. Permanent life insurance remains an option but also grows much more expensive after age 60.
Full review: Affordable Life Insurance Rates for Ages 60-69
Applicants in their 70s
Once Canadians reach their 70s, life insurance becomes extremely expensive. Traditional term life policies may not even be an option anymore regardless of health. Permanent life insurance sees premiums inflated to very high levels assuming applicants even qualify. Overall insurance options are limited for seniors in their 70s.
Full review: Best Life Insurance Rates for Ages 70-79
Term Life Insurance Rates By Age Chart
To demonstrate how term life insurance rates rise with age, here are some sample monthly premiums at different age groups for healthy non-smokers.
Applicants in their 20s
The following table shows sample monthly rates term policies for applicants in their 20s:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 20 | $13.81 (Male) $10.30 (Female) | $15.58 (Male) $13.76 (Female) |
| 22 | $13.90 $10.32 | $16.08 $13.83 |
| 24 | $13.98 $10.34 | $16.58 $13.89 |
| 26 | $14.07 $10.55 | $16.77 $13.99 |
| 28 | $14.18 $10.94 | $17.17 $14.13 |
As expected, rates incrementally increase every few years for applicants in their 20s while still remaining low overall. The longer the term length, the more expensive the policy.
Applicants in their 30s
Here are sample monthly term policy rates for applicants in their 30s:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 30 | $14.28 (Male) $11.34 (Female) | $17.57 (Male) $14.26 (Female) |
| 32 | $14.49 $11.86 | $18.11 $15.19 |
| 34 | $14.69 $12.37 | $18.65 $16.11 |
| 36 | $15.26 $13.23 | $20.08 $17.30 |
| 38 | $16.20 $14.45 | $22.39 $18.76 |
The premiums show a steady rise through the 30s age band. A 38-year-old male pays about 28% more than a 30-year-old male for equivalent coverage.
Applicants in their 40s
Monthly term life rates continue climbing for applicants in their 40s:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 40 | $20.98 (Male) $18.18 (Female) | $31.43 (Male) $25.97 (Female) |
| 42 | $24.31 $19.72 | $38.62 $30.59 |
| 44 | $28.00 $21.27 | $45.81 $35.20 |
| 46 | $32.45 $24.39 | $56.04 $42.13 |
| 48 | $37.86 $28.55 | $69.32 $51.37 |
The increases are more pronounced through the 40s age range. A 48-year-old male may pay 120% more than a 40-year-old male for a 20-year policy of the same coverage amount.
Applicants in their 50s
Here are sample monthly premiums for applicants in their 50s seeking term coverage:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 50 | $43.26 (Male) $32.72 (Female) | $82.59 (Male) $60.61 (Female) |
| 52 | $55.65 $42.01 | $106.85 $77.43 |
| 54 | $68.04 $51.29 | $131.12 $94.25 |
| 56 | $85.51 $63.49 | $166.55 $118.35 |
| 58 | $108.08 $78.35 | $213.13 $149.75 |
Term policy rates see large jumps through the 50s. A 58-year-old male pays about 150% more than a 50-year-old male. Lengthy terms become expensive.
Applicants in their 60s
Monthly premiums continue rising steeply for applicants in their 60s:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 60 | $213.74 (Male) $151.19 (Female) | $423.89 (Male) $298.49 (Female) |
| 62 | $272.33 $188.27 | n/a |
| 64 | $343.48 $231.20 | n/a |
| 66 | $428.89 $289.30 | n/a |
| 68 | $530.05 $368.99 | n/a |
Term life insurance grows quite costly after age 60. A 68-year-old male may pay approximately 150% more than a 60-year-old male for a 10-year policy of $500,000 coverage amount. Policy options are also narrow.
Applicants in their 70s
Here are sample monthly rates for applicants still seeking term coverage in their 70s:
| Age | 10-Year Term | 20-Year Term |
|---|---|---|
| 70 | $647.99 (Male) $465.29 (Female) | n/a |
| Over 70 | n/a | n/a |
As you can see, Term coverage is extremely expensive for seniors at the age of 70 and is unavailable for those over 70. A 70-year-old male may pay 200% more than a 60-year-old male for a 10-year term policy of the equivalent coverage amount.
Full review: What is Term Life Insurance ?
Whole Life Insurance Rates By Age Chart
Here are some sample annual premiums for whole life policies at different age groups to showcase how rates rise with age.
Applicants in their 20s
Annual premiums for a whole life policy remain relatively affordable for applicants in their 20s:
| Age | Whole Life Policy |
|---|---|
| 20 | $5,613.48 (Male) $5,153.76 (Female) |
| 24 | $6,009.84 (Male) $5,503.20 (Female) |
| 28 | $6,429.96 (Male) $5,876.04 (Female) |
Premiums incrementally increase but are still reasonable for applicants in their 20s given the permanent coverage.
Applicants in their 30s
Here are sample Annual whole life rates for applicants in their 30s:
| Age | Whole Life Policy |
|---|---|
| 30 | $6,648.24 (Male) $6,072.84 (Female) |
| 34 | $7,153.08 (Male) $6,537.72 (Female) |
| 38 | $7,487.88 (Male) $7,025.88 (Female) |
Permanent coverage premiums steadily rise through the 30s but remain relatively affordable, assuming good health. Expect to pay around 16% more versus just 10 years younger.
Applicants in their 40s
Annual premiums for whole life continue to climb through the 40s:
| Age | Whole Life Policy |
|---|---|
| 40 | $11,011.20 (Male) $10,590.96 (Female) |
| 44 | $11,812.80 (Male) $11,391.24 (Female) |
| 48 | $12,694.44 (Male) $12,235.56 (Female) |
Rate hikes become more significant through the 40s as mortality risk increases.
Applicants in their 50s
Here are sample Annual whole life rates for applicants in their 50s:
| Age | Whole Life Policy |
|---|---|
| 50 | $13,205.16 (Male) $12,721.92 (Female) |
| 54 | $14,131.20 (Male) $13,118.64 (Female) |
| 58 | $14,829.48 (Male) $14,222.52 (Female) |
The considerable premium jumps continue through the 50s. A 58-year-old female may pay 16% more than a 48-year-old female.
Applicants in their 60s
Annual premiums grow quite high for whole life applicants in their 60s:
| Age | Whole Life Policy |
|---|---|
| 60 | $15,476.40 (Male) $14,823.84 (Female) |
| 64 | $18,100.68 (Male) $17,438.76 (Female) |
| 68 | $21,179.28 (Male) $19,638.36 (Female) |
Whole life insurance rates climb steeply through the 60s. Expect to pay 40%+ more versus just 10 years prior.
Applicants in their 70s
Here are Annual monthly whole life rates for seniors in their 70s:
| Age | Whole Life Policy |
|---|---|
| 70 | $22,973.64 (Male) $21,002.64 (Female) |
| 74 | $27,084.48 (Male) $24,891.24 (Female) |
| 78 | $31,793.64 (Male) $30,538.20 (Female) |
| 80 | $34,173.00 (Male) $32,090.28 (Female) |
| 81 | n/a |
Whole life insurance grows extremely expensive after age 70 and is only available until 80. Expect to pay approximately 50% more versus just 10 years younger.
Full review: What is Whole Life Insurance ?
Other Factors Impacting Your Life Insurance Rates by age chart
While age plays the biggest role, insurance companies weigh several other applicant characteristics when pricing policies.
Your Gender
Statistically, women live longer than men. The latest life expectancy figures show 79.3 years for Canadian women versus 73.5 years for men.
Due to the longer average lifespan, women represent lower mortality risk. As a result, females generally receive cheaper life insurance rate quotes compared to males of the same age and health profile.
Your Health Status
Life insurers heavily assess your health when underwriting policies. Expect higher rates if you have pre-existing conditions like heart disease, diabetes, or cancer. Minor issues like high blood pressure also raise rates but to a smaller degree.
Applicants undergo medical exams and testing to determine their health risk class, which directly impacts premiums. Super Preferred classes get the lowest rates, while Substandard classes pay the most.
Full review: What is life insurance with Pre-Existing Conditions ?
Tobacco Use
Smokers can expect to pay two to three times higher premiums compared to non-smokers. Insurers charge inflated rates due to the many adverse health effects of smoking.
Just know that when you do quit smoking for good, you can request non-smoker rates after being tobacco-free for one year.
Full review: Life Insurance for Smokers
Your Occupation
High risk occupations like Skydivers, doctors, police officers, and firefighters may trigger higher premiums. Life insurers charge more when work-related mortality risk is elevated.
However, low-risk office-based occupations typically qualify for standard rates assuming good health. Retirees also get favourable rates based on health.
Hazardous Activities
Insurers will inquire about lifestyle and hobbies on your application. Those who regularly engage in extreme sports or high risk activities like skydiving, rock climbing, scuba diving, or motorcycle racing may pay higher premiums due to increased mortality risk.
Term Length
Naturally, the longer the term length you choose, the more expensive the policy. A 30-year term life policy will cost significantly more than a 10-year term policy or 20-year term policy for equivalent coverage. The longer timeframe increases the risk of an insurer payout.
Amount of Coverage
The more coverage you buy, the more it costs. Life insurance rates directly correlate with your death benefit amount. Unlike auto and home insurance, life policies aren’t subject to discounts. Higher benefit amounts equal higher premiums.
Deciding Between Term vs. Whole Life Insurance
When purchasing life insurance, one of the biggest decisions is whether to get term or whole/permanent life insurance. There are important differences and pros and cons to consider for each.
When Term Life Insurance May Make Sense
Term life insurance provides pure death benefit protection for a set period of time. It generally makes sense when:
- You have temporary needs: A term policy can cover needs like paying off a mortgage, funding childcare, or replacing the income that will disappear when kids grow up or debts are paid off. Terms of 10-30 years often align well with temporary needs.
- You’re on a tight budget: Term life is substantially cheaper than permanent insurance, especially when young and healthy. Monthly premiums can range from $20-50 per month versus hundreds for whole life.
- You want high coverage for low cost: Million-dollar term policies often cost $50-100 per month for young, healthy applicants. It’s affordable and high protection.
When Whole Life Insurance May Be Preferable
Whole life insurance provides lifelong protection and builds cash value. It tends to work better when:
- You want lifelong coverage: Whole life lasts to age 100 or more. It ensures coverage won’t run out after a term expires, locking in insurability.
- You want to build cash value: The cash account earns interest and enables policy loans if needed. This provides options beyond just a death benefit.
- You want funds beyond death: Since it accumulates cash value, whole life gives beneficiaries more than just the death benefit. They also receive the cash balance.
- You have an extra budget: Whole life costs significantly more than term life. Make sure you can afford premiums long-term and have a discretionary budget.
- You already have term insurance: Those with term policies may add whole life insurance for permanent coverage and cash growth.
Key Considerations for Policy Type
Think about your budget, timeline of needs, desire for cash accumulation, and existing coverage when weighing term versus whole life insurance. It’s also perfectly fine to utilize both policy types for a customized layered approach. An insurance advisor can help assess your specific situation. However, knowing the difference between cost and benefits is a starting point.
Finding Affordable Coverage to Fit Your Budget
Despite the age-related rate increases, there are strategies to secure budget-friendly coverage throughout your lifetime.
Lock In Long-Term Rates Early
Your best bet is to obtain life insurance when young and healthy to lock in the lowest premiums. Rates on most term life and some permanent policies won’t increase over time. Buying early can secure your coverage for decades.
For instance, a 30-year-old could lock in low rates on a 30-year term policy. By age 58, they’d still pay the original cheap premium even though new policies would cost much more at that age.
Compare Quotes Across Providers
Every life insurer prices policies differently. Getting quotes from multiple companies can help you find the most competitive rate for your situation. Insurers weigh risk factors like age and health differently.
Working with an independent life insurance broker can enable efficient quote comparisons. Don’t just go with the first option presented.
Full review: How to Find the Best Life Insurance Broker in Canada
Prioritize Essential Needs First
If budget is a concern, focus first on purchasing a term policy with just enough coverage for essential needs like mortgages, final expenses, and childcare costs. Additional coverage can wait until it is more financially feasible. Paying for smaller essential policies is doable, even with steeper age-related rates.
Consider Length of Need
Instead of automatically buying the longest 30-year terms, think about your actual needs. A 20-year term may be sufficient to cover a mortgage payoff, for example. Avoid overpaying for unneeded extra years of coverage. Needs often decrease heading into retirement as debts shrink.
Check Conversion Options
Many term life policies allow you to convert to permanent insurance with no medical underwriting. This enables you to secure long-term universal or whole life coverage down the road even if health issues emerge. Check policies for conversion guarantees to maintain future insurability as you age. Converting while still relatively young also keeps permanent policy rates affordable.
Maintain Good Health
Sticking to healthy lifestyle habits around diet, exercise, and regular checkups enables you to delay rate increases. Paying attention to any developing conditions and controlling issues like high blood pressure also helps keep rates low. Remaining in a high health risk class as long as possible saves money.
Conclusion: Ready to Find the Best Life Insurance Rates Chart for You?
The cost of life insurance depends on many personal factors, and the only way to find the most affordable rates tailored to your needs is to compare customized quotes.
At Lifebuzz.ca, we make it easy to compare quotes from top Canadian life insurance providers. Just answer a few quick questions. Our online tool provides side-by-side quotes so you can find the optimal rate for your budget and coverage needs.
FAQs related to life insurance rates by age chart in Canada
How often do life insurance rates change as you age?
Life insurance rates typically increase about 3% to 5% each year as you age. The increases are due to the rising mortality risk associated with aging. Rate hikes can accelerate after age 50.
What is the average cost increase each year for life insurance rates?
On average, life insurance rates increase about 4% to 7% each year for the same policy as you age. However, the increases are cumulative and compounded over time.
Where can I find the best life insurance rates in Canada?
The best way to find affordable life insurance rates is to compare quotes from about 5 of the top national life insurance providers in Canada. This allows you to find the most competitive rate for your situation.
When should I lock in life insurance rates?
The ideal time to lock in low life insurance rates is typically in your 20s or 30s while young and healthy. Rates rise consistently as you age. Buying early can lock in lower premiums for life or lengthy terms.
Do life insurance rates ever go down as you age?
Life insurance rates very rarely go down as you age. The only exception is if you make major health improvements that allow you to qualify for a better risk class, which could lower your premium.
Can I negotiate better life insurance rates as I get older?
Unfortunately, you cannot negotiate life insurance rates as you age. Rates are based on actuarial mortality data tied to your age. The best way to save is to maintain good health and compare insurer quotes.
Is whole life insurance cheaper when you're younger?
Yes, whole life insurance premiums are significantly cheaper when purchased at a younger age. Monthly premiums for a policy can double from age 30 to age 60.
How much more do seniors pay for term life insurance?
Seniors may pay up to 500-1000% more for term life insurance compared to younger applicants. A 70-year-old often pays 8-10 times more than a 30-year-old for a 20-year term policy.
What's the best age for seniors to buy life insurance?
The ideal age for seniors to buy life insurance is in their early to mid-60s while still relatively healthy. Rates for term and permanent insurance rise dramatically after age 70.
Do life insurance rates ever plateau?
No, life insurance rates do not plateau at any age. They increase incrementally every year for the same coverage based on rising mortality risk as you age.