Ben Nguyen 
If you’re a Canadian looking to secure life insurance coverage until around the age of retirement, a term to age 65 policy may be right for you. This type of insurance provides affordable premiums and robust coverage for a set period of time.
In this guide, we’ll explain everything you need to know about the term to age 65 life insurance, including how it works, who needs it, pros and cons, cost, top providers, and tips for purchasing the right policy. Read on for expert insights that will ensure you make an informed insurance decision.
What is Term to Age 65 Life Insurance?
Term to age 65 life insurance is a form of term life insurance specifically designed to provide coverage until the policyholder turns 65 years old.
With most term to age 65 policies, premiums and death benefit payouts remain level for the entire duration of the term, which is set to expire when the insured individual reaches age 65.
Unlike permanent forms of life insurance, term-to-age 65 plans provide coverage for a fixed period of time rather than for the policyholder’s entire lifetime. The key features include:
- Level premiums – The cost of coverage remains the same from year to year until expiration at age 65.
- Level death benefit – The payout your beneficiaries receive in the event of your death is fixed for the term of the policy.
- Fixed coverage period – Policies expire when the insured reaches age 65 in most cases.
Term to age 65 insurance gives you an affordable way to secure life insurance tailored specifically to your pre-retirement years.
Why Consider Term to Age 65 Coverage?
There are a few key reasons term to age 65 insurance may be suitable for your needs:
- Matches coverage to working years – Policies are designed to provide protection during your prime earning years leading up to retirement.
- Covers mortgages – The coverage term lines up well with the duration of most Canadian mortgages, protecting your family should something happen to you.
- Provides peace of mind – Knowing your loved ones are protected can provide comfort as you approach your retirement years.
- Budget-friendly premiums – Term life insurance is an economical way to secure robust coverage for temporary needs.
- Customizable coverage options – Many insurers allow you to customize your policy with add-ons like disability waivers, return of premium riders, and more.
If you need life insurance specifically for your working years leading up to retirement, term to age 65 policies can provide the right solution.
Read more: Family life insurance in Canada
How Does Term to Age 65 Life Insurance Work?
Term to age 65 life insurance operates much like traditional term life insurance, with a few key differences:
- You select a coverage amount based on your financial needs and budget.
- The insurer underwrites you by assessing your health and other risk factors to determine premiums.
- Your beneficiaries receive a tax-free lump sum payout if you pass away during the term.
- Premiums and death benefits remain level until expiration at age 65.
- At age 65, the policy either expires or renews annually at substantially higher rates.
- Renewal and conversion options allow you to extend or modify your coverage after the initial term.
The key advantage of this type of policy is that by matching the term length to your pre-retirement years, you can secure ample coverage at budget-friendly rates.
Who Needs Term to Age 65 Life Insurance?
Term to age 65 life insurance can be ideal for certain demographics and life stages:
- Young families – Parents with new families depend on their income and need protection.
- New homeowners – Those who have recently purchased a home benefit from coverage matched to their mortgage term.
- Peak income earners – Individuals earning the most in their careers need protection for income replacement.
- Pre-retirees – People in their final working years gain peace of mind knowing their spouse is protected.
- Business owners – Entrepreneurs can benefit from coverage to protect against business interruptions.
If you fall into one of these demographics and want coverage tailored to your working years, term to age 65 insurance can be a great fit.
Pros and Cons of Term to Age 65 Life Insurance
There are several advantages and potential drawbacks to consider with term to age 65 policies:
Pros
- More affordable premiums than permanent insurance
- Provides coverage for mortgage, income replacement, and final expenses
- Guaranteed level premiums matched to pre-retirement years
- Often renewable or convertible after the initial term expires
- Available without a medical exam in some cases
Cons
- Does not provide lifelong coverage like permanent policies
- Limited policy terms may exceed the needed coverage period
- Renewal rates after 65 are often much more expensive
- Insurer choice key as renewal/conversion options vary
Considering these key pros and cons will allow you to decide if this type of term policy suits your coverage needs and budget.
Cost of Term to Age 65 Life Insurance in Canada
The cost of the term to age 65 life insurance depends on several factors, including:
- Age – Premiums increase as you get older. Coverage costs less when purchased at a younger age.
- Health – Those in good health qualify for preferred rates, while medical issues can increase premiums.
- Lifestyle – Risky hobbies, high-risk occupations, smoking, or having pre-existing conditions may result in higher rates.
- Coverage amount – Policies with higher death benefits have higher premiums.
To give you an idea, here are sample monthly premiums for healthy non-smokers purchasing $500,000 of coverage from RBC Insurance:
| Age | Male | Female |
|---|---|---|
| 30 | $59.76 | $41.40 |
| 40 | $68.36 | $50.27 |
| 50 | $100.98 | $66.60 |
Use an online quote tool to get a personalized premium estimate based on your age, health, lifestyle, and desired coverage amount.
Top Term to Age 65 Life Insurance Providers in Canada
When shopping for a term to age 65 life insurance, it’s important to choose a financially stable life insurance providers that offers solid policy options. Here are the top Canadian life insurance providers to consider:
- Sun Life – One of Canada’s largest insurers with competitive rates and helpful tools to determine your ideal coverage amount.
- RBC Insurance – A leading brand providing a seamless application process with no medical exam required in some cases.
- Manulife – Offers personalized quotes online and access to the Manulife Vitality program for rewards and premium discounts.
- Canada Life – Features customizable term life insurance policies with options like Waiver of Premium and Guaranteed Insurability.
- Desjardins – Policyholders can access the nurse hotline and enjoy potential discounts when bundling auto or home insurance.
Work with an independent life insurance broker to compare quotes across providers and find your best policy.
Features and Riders to Understand
When purchasing term to age 65 insurance, there are some key features and add-ons (called “riders”) that you should understand:
Renewability – This allows you to extend your existing term life coverage past age 65 but at substantially higher premiums.
Convertibility – Gives you the option to convert your term policy to permanent insurance after the initial term expires.
Disability waiver – Waives your premium payments if you become unable to work due to disability.
Accidental death – Provides an additional payout to your beneficiaries if you die due to an accident.
Terminal illness – Pays out a portion of your death benefit if diagnosed with a terminal illness.
Discuss any desired riders with your insurance advisor to customize coverage to your needs and budget.
Tips for Purchasing the Right Term to Age 65 Life Insurance
Follow these tips when shopping for term to age 65 life insurance to ensure you secure the right policy:
- Get quotes from at least three insurers to compare rates and policy features.
- Determine the right coverage amount by tallying debts, income to replace, and more.
- Ask about renewal and conversion options to understand what happens after age 65.
- Review the insurer’s ratings to ensure you choose a financially stable provider.
- Read the fine print to know what is and isn’t covered.
- Work with an advisor to gain expertise and get quotes for multiple carriers.
- Secure preferred rates by applying while young and healthy.
Taking your time upfront and asking the right questions will ensure you purchase adequate and affordable coverage for the term to age 65.
How to Buy Term to Age 65 Life Insurance in 5 Easy Steps
Buying term to age 65 insurance is straightforward when you follow these steps:
Step 1: Get Quotes
Start by visiting insurer websites or working with a broker to get premium quotes. Provide details on:
- Your age and gender
- Health status and medical history
- Lifestyle and hobbies
- Desired coverage amount
Quotes allow you to compare costs across providers.
Step 2: Compare Insurers
Look at insurers’ financial strength ratings and policy features when comparing quotes. Key factors include:
- Ratings from agencies like AM Best or S&P
- Renewability and convertibility options
- Range of permanent products if converting later
- Online tools and resources
Step 3: Select Coverage Amount
Choose a coverage amount to pay off debts, replace income, and cover final costs based on your financial situation.
Step 4: Complete Application
Your application will request personal, medical, and lifestyle details to underwrite your policy. This may require a medical exam.
Step 5: Accept Offer & Pay Premiums
If approved, the insurer will offer a policy. Review details closely before accepting and paying your first premium installment.
Following these simple steps will guarantee you find the most suitable and affordable term to age 65 coverage. Connect with an advisor for additional guidance.
Where to Buy Term to Age 65 Insurance in Canada
You can purchase term to age 65 life insurance through two main avenues:
Directly from the Insurer
- Visit insurer websites like SunLife, Manulife, Canada Life
- Get personalized quotes online or over the phone
- Complete the application and medical questionnaire online
- Submit payment to secure coverage
Through an Independent Broker
- Broker shops rates from multiple top insurers
- Provides guidance on policy selection
- Assists with the application process
- Handles underwriting and delivery of policy
- Access to exclusive rates and discounts
- Saves time managing the entire process
Brokers have access to exclusive rates and can save you time by managing everything from quotes to underwriting and policy delivery.
Making a Claim on Your Policy
To make a claim on a term to age 65 life insurance policy, the beneficiaries of the insured should follow these steps:
- Contact the insurance company to notify them of the death.
- Provide a copy of the death certificate to verify the insured’s passing.
- Complete all required claim forms provided by the insurer.
- Submit any other documentation or supporting information requested.
- The insurer will review the claim and required documents to verify validity.
- Once approved, the death benefit will be paid out in a lump sum to designated beneficiaries.
- The payment is generally made within 1-2 weeks of verifying and approving the claim.
Having the right documentation prepared makes this difficult process much easier for your grieving loved ones.
Is Term to Age 65 Right for You?
So how can you decide if term to age 65 insurance is your best option? Ask yourself:
- Do I need life insurance specifically until age 65? Or would a shorter term of 10 or 20 years work?
- Do I need coverage for my entire life? If so, permanent life insurance may be better.
- How much coverage do I need based on debts, income, and final expenses?
- How much are premiums based on my age, health status, and lifestyle? Is this affordable?
- What renewal or conversion options come with the policy after age 65?
- Does the insurer have strong financial ratings and a reputation for claims payment?
Taking these factors into consideration will allow you to assess whether term to age 65 insurance aligns with your specific requirements and financial constraints.
If Term to Age 65 life insurance doesn’t meet your needs, there are other term lengths to consider. Read our helpful guides comparing the costs, pros and cons, and best uses for Term 10 Life Insurance, Term 20 Life Insurance, Term 25 Life Insurance, Term 30 Life Insurance, and Term 40 Life Insurance in Canada.
Conclusion
For Canadians who need robust yet budget-friendly life insurance tailored specifically to their pre-retirement years, term-to-age 65 policies can provide the perfect solution.
Key takeaways:
- Premiums and death benefits remain level until expiry at age 65
- Ideal for mortgages, income replacement, final expenses
- Weigh renewal and conversion options carefully
- Shop rates from highly rated-insurers
- Work with an advisor to find the best value
Taking the time to understand this policy type, get quotes, and ask the right questions will empower you to make a wise insurance decision.
With the right term to age 65 life insurance in place, you can gain financial security and peace of mind knowing your loved ones are protected into your retirement years.
Get Your Customized Quote
Now that you grasp the fundamentals of term-to-age-65 life insurance, it’s time to obtain a customized quote that suits your needs.
Speak with one of our advisors at Life Buzz. We’ll shop rates from Canada’s top insurers to match you with the most affordable policy. Chat soon, and we can ensure you secure the right coverage!
Frequently Asked Questions
What happens when my term to age 65 policy expires?
At expiry, when you reach age 65, the policy will either terminate without value, or you may have the option to renew annually at substantially higher rates. Be sure to understand the renewal features before purchasing coverage.
Can I convert my policy to permanent life insurance?
Many term-to-age 65 policies come with a convertibility rider, allowing you to switch to permanent life insurance after the initial term expires without providing new medical evidence. Converted policies have higher premiums based on your age at that time.
How much coverage do I need?
Aim to purchase enough coverage to pay off debts like your mortgage and loans, replace at least ten years of income for dependents, and cover final expenses based on your desired funeral arrangements. An advisor can help determine the right amount.
Which insurer has the lowest rates?
Rates can vary significantly by provider. Work with an independent broker who can quote multiple insurers to find you the best rates for your situation. Locking in coverage when young and healthy also keeps premiums low.
What is the eligibility age for a term to age 65 insurance?
Most insurers allow applicants aged 18-65. Rates start low when young and increase as you age. Apply early to lock in the best premiums.
Is a medical exam required for a term to age 65 insurance?
Simplified issue policies are available with some insurers, where you can get coverage by completing a health questionnaire with no medical exam required.
What conditions make term to age 65 insurance more expensive?
Factors like high cholesterol, heart disease, cancer, obesity and smoking can increase your rates. Certain hazardous hobbies or occupations can also raise premiums.
Where can I find the best term to age 65 life insurance rates?
An independent broker can quote multiple top insurers to find you the most competitive rates. Purchasing when young and healthy also keeps premiums affordable.
Why does term to age 65 insurance get more expensive after 65?
After 65, renewal rates are higher because the insurer doesn't require new medical evidence. They assume higher risk as you age, so premiums increase.
Can my spouse also get coverage for the term to age 65?
Yes, many policies can cover your spouse as well. Some insurers offer joint first-to-die plans, so coverage continues as long as one spouse is alive. Discuss options with an advisor.
Is a term-to-age 65 policy renewable after age 65?
In most cases, policies can be renewed annually after the initial term expires at age 65. However, renewal rates are much more expensive than the original premiums.
What are common exclusions on term to age 65 policies?
Policies may not pay out if death is due to suicide within two years of starting coverage or combat activities. Dangerous hobbies may need extra riders. Ask an agent.
Where can I learn more about Term to age 65 insurance?
Start by speaking with a licensed life insurance advisor. They can answer questions, explain options and help you determine if term to 65 coverage suits your needs.
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