Term Insurance for People Over 65
You can get Term insurance
if you’re over 65.
Photo by Luciano Meirelles
More and more seniors require term insurance well into their retirement years. According to Ipsos-Reid, Canadian seniors increased their average debt by 15 per cent in 2012 to $47,549.
The challenge when you get older is figuring out which policies are available to you. Whole life premiums may be too expensive for many seniors, and most insurance companies only offer term insurance for a maximum of ten years to applicants over 65.
However, the age maximums on the Industrial Alliance Term 15 and Terms 20 policies are very generous. A 70-year-old applicant can still qualify for a Term 15 or Term 20 policy. Industrial Alliance is the only insurance company in Canada to allow age limits this high.
The cost differences in the premium for a 70-year-old, when you compare a term policy with a whole life policy, are very pronounced, as you’ll see from the following examples.
A 70-year-old, female non-smoker can get $150,000 in Term 10 coverage for $147.56 a month.
A 70-year-old, female non-smoker can get $150,000 in Term 15 coverage for $230.45 a month.
A 70-year-old, female non-smoker can get $150,000 in Term 20 coverage for $304.83 a month.
A 70-year-old, female non-smoker can get $150,000 in Term 100 coverage for $478.92 a month.
A 70-year-old, female non-smoker can get $150,000 in Whole Life (Life Pay with Cash Values) coverage for $519.75 a month.
On the downside if the insured outlives the Term the coverage will likely be too expensive at renewal or unavailable so its crucial the insured properly weigh their finances and needs. The wrong decision could result in a loss of thousands of dollars of premiums.