Understanding Affordable Life Insurance with No Medical Exam

Some Canadians worry that pre-existing health conditions could disqualify them from life insurance coverage. Undergoing medical tests, age or health constraints, or a high-risk job could make securing affordable life insurance a challenge.

However, no medical exam life insurance could be the answer. 

Life insurance offers peace of mind, as it helps take care of loved ones financially after you pass on, with benefits that aren’t taxable for recipients. A no medical exam life insurance policy can be used to plan for funeral expenses or help provide for your family, should something happen to you.

In this article, we will explore the common questions, myths and everything else Canadians need to know about no medical exam life insurance.

Key messages

• No medical exam life insurance is designed for individuals who may not qualify for traditional life insurance.

• This type of insurance offers a streamlined application process without the need for medical exams or health questionnaire.

• While no medical exam life insurance offers convenience and accessibility, it typically comes with higher premiums and lower coverage limits compared to traditional policies.

• Types of life insurance products available with no medical exam include simplified term life insurance and guaranteed acceptance life insurance.

What is life insurance with no medical exam?

Life insurance with no medical exam is a policy that offers coverage to leave a financial lump sum after your passing without a deep dive into your health and lifestyle or medical testing. The application process is usually more streamlined than with more standard life insurance.

Medical and laboratory tests are a normal step insurers take to assess the overall risk of covering new clients with standard life insurance policies. Because insurers get a detailed risk profile, individuals in good overall health with fewer risk factors may be eligible for more coverage.

The key differences between life insurance policies with and without medical exams are monetary. No medical exam policies typically have lower coverage amounts and higher premiums than standard life insurance. This reduces risk for insurers, as they have less information about the health and risk levels of clients selecting these policies.

No medical exam life insurance policies are designed for individuals who:

• Have anxiety around needles or medical testing

• Have certain pre-existing medical conditions, such as heart disease

• Are 50 years of age and older

• Have high-risk hobbies like motorsports, rock climbing, or scuba diving

Types of life insurance with no medical exam

There are two main types of life insurance are available without medical exams: simplified issue life insurance and guaranteed life insurance.

Simplified issue life insurance

Simplified issue life insurance is “simple” because of a streamlined approval process that doesn’t always require a medical exam. Instead, when applying for simplified issue life insurance online, clients fill out a questionnaire that includes health and lifestyle questions about:

• Current or past health issues, including preexisting medical conditions

• Family history

• Prescription medications taken

• Smoking habits

Depending on the responses and the amount of coverage selected, clients seeking simplified issue life insurance may receive coverage at the time of application – all with no medical exam.

RBC Simplified® term life insurance is designed to offer affordable protection for Canadians, with coverage ranging from $50,000 to $1 million, depending on your age.

Guaranteed acceptance life insurance

No medical exam life insurance policies which accept all eligible clients is known as guaranteed acceptance life insurance. In addition to no medical exam, clients typically won’t have to answer detailed health and lifestyle questionnaires but will have to disclose their smoking habits. Provided that age and residency criteria are met, policies can be approved quickly.

RBC’s Guaranteed acceptance life insurance offers up to $40,000 of guaranteed coverage for Canadians aged 40 to 75. Interested to learn more? Get a quote online.

This type of insurance product can be a benefit for people who are underserved by traditional policies, as it includes:

• Lifetime coverage

• No medical exam

• Tax-free benefit

• Stable premiums

Who should consider no medical exam life insurance

No medical exam life insurance is a good choice for people underserved by standard life insurance policies. This includes customers aged 50 and over, people with preexisting health concerns such as cancer, heart disease, and those who are uncomfortable with medical testing processes.

Life insurance policies without medical tests can also be good choices for clients looking for a simple application process with low wait times for coverage to begin.

Canadians who apply for no medical exam life insurance also include people who work in careers with high risks of injuries or fatalities, and others with potentially dangerous hobbies like extreme sports. While these groups may be rejected for traditional coverage, they can still find a no medical exam life insurance option that will provide them with coverage.

Pros and cons of life insurance with no medical exam

Choosing one life insurance policy over another requires weighing different options to decide what’s right for you. Benefit amount, budget, coverage length and whether coverage is guaranteed can factor into deciding if a policy is a good fit.

Here are some pros and cons to consider when applying for no medical exam life insurance in Canada:

Pros of life insurance with no medical exam

Accessibility: People who might normally be denied standard life insurance coverage, including the uninsured and underinsured, can access life insurance coverage through no medical exam policies. Guaranteed acceptance policies are open to all who meet age and residency requirements, even if they have health issues like pre-existing conditions or risky careers or hobbies.

Convenience: Applying for a no medical life insurance policy online is simple—no appointments necessary and no scheduling a medical exam. Some policies, such as guaranteed life insurance, may be approved quickly with no medical exam required.

Peace of mind: Knowing that you are insured can bring peace of mind to you and your loved ones.

Speed: While traditional policy approval could take up time with meeting an advisor, medical appointments, and lab tests, applying for life insurance with no medical exam can be done in minutes.

Cons of life insurance with no medical exam

Premiums may be higher: While no medical exam life insurance generally costs more than medically underwritten policies, skipping medical tests and faster approval can still make them more convenient for some people.

Lower coverage limits: Compared to standard policies, no medical exam required life insurance offers more limited benefit packages. Guaranteed life offers coverage of up to $40,000, while more traditional life insurance products can cover Canadians for up to $25 million.

Limited options: Traditional policies with a medical exam might offer better value to younger, healthier individuals who are looking for comprehensive, long-term coverage.

Common myths about no medical exam life insurance

1. It’s only for people with health issues

No medical exam life insurance is designed for people who want a simple application process. While this includes people with health issues or preexisting conditions, it also includes those who have high-risk jobs or hobbies and others who want the convenience of getting faster online approval for their policy, instead of waiting up to several weeks.

2. It’s more expensive than traditional policies

No medical exam life insurance policies generally have higher premiums than standard coverage, but it is still possible to find no medical exam life insurance—even on a budget. Premiums could vary depending on an applicant’s age, health, along with the amount and length of coverage.

3. It offers limited coverage options

Though no medical exam life insurance is simple to apply for and has comparatively fewer options than standard life insurance policies, you can still select from multiple terms and benefit packages. Policy amounts can vary from a few thousand dollars up to $1 million, allowing clients to pick a product that works with their budget and unique needs.

4. It’s less reliable than traditional life insurance

No medical exam life insurance policies are as reliable as any standard life insurance policy. However, like any insurance product, it is important people understand the terms and conditions and any exclusions.

Protect yourself with life insurance without a medical exam

If you expected that life insurance coverage was too complicated to apply for, or wasn’t available because of your age, health history, or lifestyle, think again. Whether you have a pre-existing health condition, participate in high-risk hobbies, or prefer to avoid dealing with health providers, medical exam life insurance could be the key to affordable coverage and peace of mind.

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If you’re juggling debt and a family, it’s natural to think about their future–especially if something happens to you. Life insurance provides a financial safety net for them with a one-time, tax-free payout. It’s affordable, provides immediate coverage and it starts with an easy online application.

Key takeaways

• Life insurance provides a one-time, tax-free death benefit to your beneficiaries in the event you pass away

• The proceeds can be used however your beneficiaries need it most

• It is possible to apply online for life insurance quickly and easily and without a medical exam

• Your choice of term can be customized to your budget, and your coverage needs

• Not all life insurance options are available to purchase online

What to consider before getting life insurance online

It can be daunting to think about life insurance (and what happens after you die), but once you understand the purpose, benefits and limitations of buying life insurance online, you can easily find a policy that meets your needs.

Why buy life insurance?

There are many reasons to buy life insurance but perhaps the main one is to provide financial security to those who depend on you after you pass away. Upon your death, your beneficiary, such as your spouse, receives a one-time, non-taxable lump-sum death benefit.

This money can be used however it is most needed, such as:

• Covering the cost of funeral or cremation expenses

• Paying off the mortgage and/or other household debt

• Replacing lost income for childcare expenses or household bills

• Funding your child(ren)’s tuition or other education expenses

• Creating a tax-free inheritance

When is the best time to apply for life insurance?

There is no best time to buy life insurance but typically, if you apply when you are young and healthy, your premiums will likely be lower.

Some people time their purchase of life insurance to coincide with a major life event, such as getting married, buying a house or having a baby. Once you have other people depending on your income, or if you have debt (such as a mortgage) that will remain after your death, then it’s a good idea to apply for life insurance.

You should likely consider purchasing life insurance now if you:

• Are expecting a baby or have kids or other dependents

• Share financial responsibilities with a spouse or partner

• Have debt, such a mortgage, personal loans or a car loan

• Do not have enough savings to cover end-of-life expenses, such as your funeral, cremation or burial

• Want to leave an inheritance to your family and loved ones

What is the right amount of life insurance coverage?

Life insurance is not one-size-fits all and it’s important to consider both your financial needs (including your total debt) and your budget.

Financial needs

• Debt: How much debt do you have and how long will it take to pay off?

• Your current income: How much replacement income do you need to help your spouse or partner with day-to-day expenses?

• Your end-of-life expenses: The cost of a funeral, cremation or burial costs can vary significantly, starting at $800 for a simple cremation up to $15,000 (or more) for a burial, according to Canadian Funerals.

• Future education expenses: A four-year degree can cost over $100,000, including tuition, living expenses and food.

• Inheritance: How much do you want to leave your family as extra, above these basic needs?

You may also have employer-provided life insurance. While this is a great benefit, especially if you don’t have other coverage, it’s important to understand its limitations, namely:

• Coverage is usually two to three times your salary, which may not be enough

• Your policy is only in effect while you are employed by that company, so if you get laid off or switch jobs, you will lose that coverage
  

Employer-provided life insurance can provide excellent supplemental coverage, but if you have the budget, purchasing more that is not tied to your employer can add another layer of security for your dependents.

Budget

The amount of your life insurance premium, which is typically paid monthly or annually, depends on several factors, such as your:

• Age: Generally, the younger you are, the cheaper the insurance policy

• Gender: Women statistically live longer than men, so their premiums may be cheaper

• Tobacco use: Smokers pay a higher premium than non-smokers

• Health: Healthier people (for example, no chronic high blood pressure) pay a lower premium

• Lifestyle: Your premiums will be higher if you’ve had your driver’s license revoked, if you’re facing criminal charges or if you engage in risky activities, such as sky diving or flying

Keep in mind that some life insurance coverage is better than none if you can’t currently afford to purchase the amount of coverage that meets all your future financial needs. You can always add more coverage as your budget allows, though you will need to qualify based on your age and health at that time.

What health information will you need to provide?

Depending on the insurance that you are applying for, you will need to answer questions about your health and lifestyle, such as:

• Age

• Gender

• If you’re a smoker (includes any form of tobacco, betel nut leaves, vaping or smoking cessation products, among other products)

• Your occupation

• Any diagnosis or chronic conditions, such as high cholesterol or cancer

• If you engage in high-risk or hazardous activities, such as racing, mountain climbing or flying aircrafts.

• If you’ve been charged with impaired driving or alcohol or drug-related offenses or activity.

Who will be your life insurance beneficiary?

A life insurance beneficiary is the person (or entity) who you designate to receive the proceeds from your policy after you pass away. The death benefit is paid directly to your beneficiary or beneficiaries and does not become part of your estate, meaning it bypasses probate.

You can choose anyone to be your beneficiary, such as your spouse, children (if they are under the age of majority, you would name a trust), siblings or other family members, a friend, business partner or charity. You can choose one beneficiary or multiple ones, and you can tailor how much each beneficiary receives.

When choosing a beneficiary, it’s important to consider who is most dependent on your income now, and in the future. If you have young children, for example, a life insurance policy can help your surviving spouse with future post-secondary education costs.

It’s also important to ensure you keep your beneficiaries up-to-date, especially after a significant life change, such as marriage, divorce, or having children.

Types of life insurance available online

RBC offers two types of life insurance you can buy entirely online:

Term life insurance

Term life insurance provides affordable coverage for a set time, or term, such as 10, 15, or 20 years. Your premium will stay the same for the entire term but it’s important to note it will increase when you renew.

Here are some of the key features of simplified term life insurance with RBC:

• Terms between 10 and 40 years

• $50,000 to $1 million in coverage for ages 18 to 55

• $50,000 to $499,999 in coverage for ages 56+

• No medical exam

• Premium will not increase for the length of the term

• Option to renew (at higher premium) at end of the term

• Accidental death benefit that pays an additional $10,000 available

• No cash value to your policy beyond the death benefit

• 30-day money-back review period

• Must be a Canadian citizen or permanent resident

Curious to know how much term life insurance might cost you? Get a term life quote online in a few minutes to find out.

If you are applying for more than $1 million in coverage, or if you are between the ages of 56 and 70 applying for more than $500,000 in coverage, you’ll need to speak to an accredited insurance advisor.

No medical exam life insurance

This is a kind of permanent life insurance that covers you for the rest of your life. Your premiums will never go up and your policy does not expire, if your premiums are maintained. With this guaranteed issue insurance, there is no medical exam, but coverage is lower than other insurance options available.

Here are some key features of RBC’s guaranteed acceptance life insurance:

• Available for Canadians or permanent residents aged 40 to 75

• Between $5,000 to $40,000 in lifetime coverage

• Premiums remain the same

• No medical exams or health questions

• Accidental death benefit (before age 85) of five times the basic coverage

• No cash value to your policy beyond the death benefit

• 30-day money-back review period

Curious to know more? Easily get a quote for guaranteed life acceptance insurance with no medical exam.

Pros and cons of buying life insurance online

If you’ve been considering life insurance, buying a policy online has several advantages. To know if it’s the right choice for you, it’s important to also be aware of the downsides.

Pros of buying life insurance online

• Convenience: You can purchase insurance anytime and anywhere that is convenient for you without having to book an appointment with an advisor.

• Speed: Buying life insurance is typically a quick process, where you provide basic information about yourself, your health and your lifestyle. You can then pay for your policy online.

• No need for medical exam: With life insurance products such as RBC Simplified Term Life Insurance and RBC Guaranteed Life Insurance, there is typically no need for a medical exam.

• Money-back guarantee: With RBC Insurance, you’ll have a specified period, typically 30 days, to review your policy. If it’s not the right fit, you have the option to cancel your policy and get a full refund.

Cons of buying life insurance online

• Limited to basic insurance types: If you’re looking for more sophisticated life insurance coverage, such as Term 100 Life Insurance that offers higher coverage amounts and special riders like disability, you cannot purchase those products online.

• No personalized advice: Shopping online means you don’t have the experience or guidance of a licensed advisor who can offer personalized advice to your circumstances and needs.

• You may overlook the fine print: While you can buy your policy quickly and easily, your insurance coverage will include a list of terms and conditions. For example, if you die within the first two years of purchasing Guaranteed Life Insurance coverage, the death benefit is limited to a refund of your premiums paid (without interest).

While purchasing a life insurance policy online is easy, if you have questions about your options or are unsure what kind of insurance is the best fit for you and your family, it may be helpful to contact an accredited insurance advisor for a more comprehensive life insurance quote.

How to apply for life insurance online

Once you’ve decided you want to purchase life insurance, it’s time to figure out how much coverage you need. To recap, start by reviewing your current financial situation and your goals.

Know what coverage you’ll need

Here are some questions to ask yourself before you begin:

How much debt do I have? This includes your mortgage and any loans.

What expenses do I expect? When you think of “saving for the future,” what does this include? It could be post-secondary education for kids, 

What expenses do I anticipate when I die? Get specific about your final wishes when you die and understand the costs associated with a funeral.

What financial legacy do I want to leave? Are there charities or organizations you want to donate to after you’ve passed away?

Our life insurance calculator can help you figure out how much coverage you might need.

This online tool asks questions about your:

• Age

• Marital status

• If you have kids and their ages (if under the age of majority)

• Your gross annual income

• If you have debt and if so, how much you’d need to pay it off

Once you have the total coverage amount in mind, you can easily compare life insurance plans to find the one that meets your eligibility and coverage needs.

Tips for getting approved for life insurance online quickly

• Best honest in your application, especially if you’re a smoker (for the purposes of an application, smoking includes any form of tobacco, betel leaves, vaping, and smoking cessation products)

• Have a clear understanding of your coverage needs

• Choose a policy that best suits your age and health profile

• If you have preexisting medical conditions, or are afraid of needles or medical appointments, consider a policy that does not ask health questions or require a medical exam

• Have your payment method (such as a credit card) ready

Get a life insurance quote online in minutes

If you’re looking for simplified life term life insurance or guaranteed acceptance life insurance that provides immediate coverage, you can save time and stress by getting a quote online.

To start, you’ll need to answer questions about your province of residence, your date of birth, your gender and your tobacco use over the past 12 months. You can then customize the term that’s right for you and the coverage amount. From there, you can start your application entirely online. Alternatively, arrange to speak to an accredited insurance advisor to guide you through the insurance-buying process.

Purchasing life insurance online does not need to be overwhelming or difficult. In fact, RBC Insurances makes it easy to assess your needs, get an insurance quote online, and purchase your coverage in just minutes – giving you peace of mind knowing your family is protected.

FAQs about buying life insurance online

Can I get life insurance completely online?

Yes, you can get an RBC Simplified Term Life Insurance policy or RBC Guaranteed Acceptance Life Insurance policy completely online. You simply need to answer questions about your personal profile, health and lifestyle. Some insurance products, however, such as RBC’s Term 100 Life Insurance, are not available to purchase completely online.

How do you get life insurance quickly?

Purchasing life insurance online is quick and easy and will likely not require a medical exam. You can be covered in the time it takes to get a quote, complete an application online, and submit your payment details.

How much does life insurance cost per month?

The cost of life insurance depends on your age, gender, health, risk factors and coverage amount. For example, a policy of $100,000 for a 10-year term would cost a 31-year-old woman $9.22 per month, and a 51-year-old woman $20.95, per month. Increase the coverage to $250,000 and it would cost $11.70 and $34.29 per month.

Is buying life insurance online safe?

Yes, buying life insurance online is safe. Purchase life insurance online from a reputable insurance company and check the policy comes with a a money-back cancellation period (such as 30 days), if you change your mind.

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For many Canadian seniors, life insurance may seem unnecessary once financial freedom is in sight. Maybe the house is mostly paid off, the kids are grown, and your pension is steady — so what’s the point?

Here’s the truth: life insurance isn’t just about replacing income. It’s about peace of mind, protecting the estate you’ve built, and easing the financial load on loved ones. The right policy can cover final expenses, safeguard assets, and even create a meaningful gift for children, grandchildren, or charities.

Moreover, while some seniors already have a policy, they may not review it often. Fewer than 40 per cent of Canadians revisit their coverage each year, leaving many with outdated policies that no longer fit their current lives.

This guide breaks down the best life insurance options for seniors in Canada — from simple plans for final expenses to policies that help pass wealth to the next generation.

Key takeaways

• Life insurance can help seniors cover end-of-life costs, protect retirement income, preserve estates, and leave a legacy.

• Seniors have several options, including term, permanent, and guaranteed acceptance policies, each with pros and cons.

• The right policy depends on your needs, health, and goals, so compare carefully and work with a trusted advisor.

• Read the policy’s fine print to avoid surprises and ensure it truly fits your long-term goals.

Why life insurance matters for seniors

Life insurance isn’t just a “young person’s product.” Whatever your age and stage, the right policy can be a smart financial tool for protecting your family, assets, and peace of mind.

Estate planning

Settling an estate isn’t free. Taxes, fees, debts, and other costs must be paid before assets are passed on to beneficiaries. Without life insurance, your loved ones may need to dip into the very assets you hoped to preserve — like the family home, cottage, investments, or savings — long before anyone is ready.

Life insurance provides cash to cover those costs, keeping your estate intact. Since death benefits are tax-free in Canada, your beneficiaries receive the full payout.

Read more: What Is Estate Planning?

Cover end-of-life expenses

Think the cost of living is high? The cost of dying isn’t cheap. Funerals in Canada can cost between $5,000 and $10,000+, cremations up to $5,000, and in some city cemeteries, a single burial plot can exceed $25,000. Without insurance, families may have to find the money to cover the costs. A policy ensures loved ones can focus on saying goodbye, not the bills.

Protect retirement income

Losing a spouse brings more than grief — it can also mean a sudden drop in income. Pensions and survivor benefits often shrink, leaving the surviving partner to cover expenses or maintain the lifestyle you built together.

The impact can be especially tough before age 65. In 2021, widows under 55 saw an average after-tax family income drop by more than $15,000 in a year, and the share living in low-income households nearly tripled, from 7.7 per cent to 21.9 per cent. Life insurance can help buffer that financial blow, giving the surviving partner a tax-free payout to ease their money worries.

Leave a legacy

What’s the best gift you can leave your family? Financial security. Life insurance provides a tax-free benefit that goes directly to children, grandchildren, or loved ones, which can help fund tuition, contribute to a first home, or simply provide a cash cushion for the future.

Covering taxes on assets

Cottages, investment properties, and non-registered investments can trigger hefty capital gains taxes. Insurance creates funds to pay those taxes, helping keep assets in the family.

Opens the door to charitable giving

Your generosity doesn’t have to stop when you do. By naming a charity as a beneficiary, you can create a tax-free gift that bypasses probate and delivers immediate impact.  Depending on the policy’s structure, you may also benefit from tax credits.

Types of life insurance for seniors

From short-term protection to lifelong plans that double as financial tools, there are a range of options designed to fit different needs. Let’s break them down.

Read more: The Types of Life Insurance Explained

Term life insurance

Straightforward and affordable, term life covers you for a fixed period (like 10, 20, or 30 years) or until a certain age (such as 65).  If you pass away during that term, your beneficiaries receive a lump-sum, tax-free death benefit. Coverage ends when the term expires, unless you renew or convert it to permanent insurance.

It’s a good fit for healthy older Canadians who need temporary protection, like paying off a mortgage or supporting a spouse until retirement. Premiums stay the same for the entire term, but they can increase upon renewal. RBC’s Term Life Insurance offers flexible terms that range from 10 to 40 years, and you can convert it to permanent coverage later — protection that can grow with you.

Best for: Healthy seniors with temporary needs who want flexibility to convert later.

Permanent life insurance

Think of this as the “locked-in-for-life” plan. Permanent life insurance never expires, as long as premiums are maintained, and often builds cash value that you can tap into while you’re alive. There are two main types:

• Whole life insurance is steady and reliable. Your premiums stay the same for life, coverage never ends, and the policy often builds a guaranteed minimum cash value over time. Some plans also invest part of your premiums and may pay out dividends. With RBC’s Participating Whole Life Insurance, you can access your policy’s funds while you’re alive, and coverage is available up to age 80.

• Universal life insurance does double duty: it combines lifetime coverage with an investment component. Part of your premium pays for insurance, while the rest goes into funds you choose. That money grows inside the policy, often with tax advantages. RBC’s Universal Life Insurance lets you adjust payments, pick investments, and access the cash value if needed. Coverage is available up to age 85.

Best for: Seniors who want lifelong coverage plus the potential to grow wealth and preserve their estate.

Guaranteed acceptance life insurance

Not in perfect health? No problem. Guaranteed acceptance life insurance makes it easy to get coverage with no medical exam or health questions. With RBC’s Guaranteed Acceptance Life Insurance, Canadians aged 40 to 75 are automatically approved for up to $40,000 in coverage.  Premiums never go up, and coverage lasts a lifetime.

Best for: Seniors in poor health who want hassle-free, lifetime protection for final expenses.

Funeral insurance

Funeral insurance (also called burial or final expense insurance) provides a smaller payout specifically for end-of-life costs. A medical exam isn’t typically required, coverage lasts a lifetime, and claims are often paid quickly.

Read more: Are Your Parents’ Final Expenses Covered?

How much does life insurance for seniors cost?

It depends! Premiums tend to rise with age, but the exact cost depends on factors like age, lifestyle, coverage amount, policy type, and overall health. Pre-existing conditions (like high blood pressure, diabetes, or cancer history) can increase the cost, and smoking is a surefire way to push rates even higher.  There’s no “one-size-fits-all” policy.

Get a term life insurance quote online to see what a policy might cost you.

Read more: Applying For Life Insurance: Why You Should Be An Open Book

How to choose the best life insurance policy for seniors

Life insurance is a major financial decision, and with so many options out there, it can feel overwhelming. Here’s how to focus on what matters and find the right fit:

1. Assess your needs

Calculate what you’d like the policy to cover. Funeral costs? Outstanding debts? Charitable gifts? This gives you a realistic idea of how much coverage you need. Our life insurance calculator can help you estimate in minutes.

2. Evaluate your health

If you’re in good health, you may qualify for term or permanent life insurance. If not, consider guaranteed acceptance policies that don’t require a medical exam.

3. Work with a professional

The right advisor can make all the difference. Look for someone who understands your needs, priorities, and budget, and can explain options clearly. RBC’s licensed insurance advisors can help you find the right policy and guide you every step of the way.

4. Compare policies

Compare quotes carefully, looking at the type of coverage, long-term costs, and included features. Don’t just chase the lowest price — cheaper isn’t always better if it leaves gaps in coverage! Make sure the policy will serve you years from now, not just today. RBC’s life insurance comparison tool makes it easy to review plans side by side.

5. Understand the policy

Once you’ve chosen, dig into the details of that specific policy. Read the fine print, check for exclusions or waiting periods, and confirm which benefits and rates are guaranteed. Ask how the policy might change over time so there are no surprises later.

Secure peace of mind in your retirement

Life insurance isn’t just about numbers — it’s about knowing your loved ones will be taken care of when you’re gone. The right policy can cover end-of-life, provide financial support for dependents, or even help you leave a legacy. For seniors, premiums may be higher, but coverage is available. By assessing your needs, considering your health, comparing policies, and working with a trusted advisor, you can find an option that fits your budget and goals.

FAQs about life insurance for seniors

Do seniors need life insurance?

Not every senior does, but many find it valuable. Life insurance can cover final expenses, pay off debts, or leave a financial legacy. If you have dependents or want to ease the financial burden on loved ones, a policy can help with that.

Can seniors get life insurance without a medical exam?

Yes. Many insurers, including RBC Insurance, offer guaranteed acceptance policies that don’t require a medical exam or health questionnaire. These are designed to make coverage more accessible for older applicants or those with health concerns. RBC Insurance offers guaranteed acceptance coverage with automatic approval for ages 40 to 75.

Can you get life insurance after 70?

Absolutely! RBC Insurance, for example, offers life insurance options for Canadians up to age 85. Premiums may be higher, but coverage is available.

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If you’re thinking about purchasing a whole life insurance plan, you probably already know that it’s a type of coverage that comes with two advantages. Whole life policies offer protection and peace of mind for your lifetime and can work as a savings tool that helps you build wealth and plan for your future and the future of the people you love.

Life insurance, however, isn’t a one-size-fits-all product. How do you know if whole life insurance is the right product for you — and how do you choose the specific whole life insurance policy that’s the best fit for your financial goals? There are several important factors to consider before making your decision.

Here, we break down the typical features offered by whole life insurance plans, including how they differ from other types of insurance and how you can leverage your plan to grow your savings while looking after your family.

Key takeaways

• Whole life insurance plans provide lifetime coverage, paying out a death benefit regardless of when you die.

• Unlike term life insurance, whole life policies can feature a cash value component that offers the opportunity to build wealth that you can withdraw, borrow against, or reinvest.

• Participating whole life insurance plans also have a professionally managed investment component that may earn dividends.

• Alternatives to whole life insurance include term life insurance and universal life insurance.

What is whole life insurance?

A whole life insurance policy provides insurance coverage for your entire life, as long as premiums are maintained. When you pass away, your policy pays a fixed amount called death benefit to your beneficiaries. These policies may also include a cash value component where a percentage of each of your premiums goes towards the cash value of your policy, earning interest at a fixed rate. 

How does whole life insurance work?

There are several unique features that differentiate whole life insurance from other types of coverage. The biggest, and perhaps most important factor is that a whole life insurance policy protects you for your entire life, unlike term life insurance policies which offer coverage for a set term (usually ten, 15, or 20 years). When you die, your whole life insurance policy pays a guaranteed, tax-free death benefit to your selected beneficiaries, as long as premiums are maintained.

With a whole life insurance policy, you’ll have two options to grow your wealth: cash value or dividends, depending on the type of policy you choose.

A cash value component acts as a tax-deferred savings account. Policyholders have access to these funds and can use them to supplement their retirement income, fund home renovations, or take a dream vacation – it’s up to you.

With participating whole life insurance plans, part of your premium payments is pooled with other policy holders in a fund that is professionally managed and has the potential to produce earnings. These earnings are paid out in dividends when the fund produces growth or can be reinvested to pay off premiums or purchase additional insurance.

What are the benefits of whole life insurance?

With a whole life insurance policy, you’ll have access to additional features and benefits that other types of life insurance don’t offer. These benefits include:

• A savings component that grows over time at a guaranteed rate

• The ability to use your policy’s cash value as collateral against a loan

• Access to that cash value and the freedom to use it for whatever you choose including premium payments, supplemental retirement income, or a bucket list vacation

• The potential to earn dividends on the invested portion of your policy if you choose a participating whole life insurance plan

• Premium payments that are set from the start of your plan and remain regular and consistent, allowing for easier financial planning

• A guaranteed death benefit that isn’t subject to taxation

• Estate planning benefits that allow you to protect the wealth you’ve worked hard for and pass it on to your loved ones

Alternatives to whole life insurance

Different types of life insurance coverage are available to suit different needs and unique financial goals. If you’re considering signing up for a life insurance plan, you might also want to consider:

Term life insurance

Term life insurance offers coverage for an entire lifetime while term life insurance covers you for a specific length of time, typically between 10 and 40 years, depending on the plan you select. You may not need a medical exam to qualify, and the premiums are typically lower because there are no savings or investment components.

Read more: Term vs permanent life insurance

Universal life insurance

The differences between whole life insurance and universal life insurance are in the details. Both offer lifelong coverage, a death benefit payout, and a cash value component. However, with universal life insurance, policyholders have the potential to grow their death benefit and take a greater role in managing the investment components of their policy. 

What to consider when choosing a whole life policy

To understand whether a whole life insurance policy is the right kind of coverage for you and your family, consider these key factors:

Your coverage needs: Think carefully about the kind of coverage you need, how long you might need it for (based on your current age), and the financial goals you have for yourself and your loved ones. 

Your premium affordability: With a whole life policy your premiums are fixed which makes for simplified budgeting; however, you need to be sure that you will be able to afford the premium payments both now and in the future.

Your policy as a savings and investment tool: If you’re planning to use your policy to grow your savings and act as an investment tool, evaluate it carefully to ensure that it aligns with your financial goals. It’s also important to understand the different ways in which the cash value component of your plan can be leveraged for loans or withdrawals.

The policy’s exclusions: Be sure to take careful note of what is and isn’t covered by your policy. In what kinds of situations might you encounter an exclusion?

The reputation of your policy provider: Choosing the right life insurance policy is a decision made easier with guidance from an accredited insurance broker and a trustworthy insurance provider.

Common mistakes to avoid with whole life insurance

To select the ideal whole life insurance policy, it’s important to keep in mind the common errors people often make when deciding on a plan.

• Don’t underestimate your coverage needs. People may need more coverage than they think they do. Consider the number of people who rely on you, the amount of debt you have, and your current income. Use our life insurance calculator in order to get an initial estimate.

• Don’t sign on to a plan with premiums that are beyond your current or future budget. Failing to make premium payments can put your coverage and death benefit at risk.

• Always read the fine print and consult an accredited insurance advisor if you still have questions or don’t understand something you read.

Grow your wealth and protect your family with whole life insurance

Whole life insurance is an insurance product that provides lifelong coverage for you and your loved ones. You’re protected when you die, no matter when or at what age. Your beneficiaries receive a death benefit payout that helps support them financially after you’re gone.

Additionally, whole life plans include components that serve to grow your savings and offers the ability to earn dividends that can be reinvested or used to supplement your income. Should an unexpected expense come up, your cash value component may be eligible for withdrawal or used as collateral against a loan. It’s protection with built-in flexibility and financial opportunity.

FAQs about the best whole life insurance policies in Canada

Is whole life insurance a good investment?

Whole life insurance provides lifelong coverage while also featuring tools for savings and investment. The cash value component of your policy offers guaranteed growth that does not depend on market performance. Participating whole life insurance policies also have the potential to earn dividends based on the performance of the professionally managed investment component.

Who should get whole life insurance?

Whole life insurance is ideal for people who want the peace of mind that comes with knowing their loved ones and dependents will be provided for financially in the future. It can also act to bolster estate planning, protecting the assets you’ve worked hard for and want to pass on to your family.

Can I cash out my whole life policy?

Yes. If you decide to do this, your policy provider should be able to provide the cash surrender value of your plan. When you die, however, your beneficiaries will no longer receive the death benefit payout. It’s important to know, there may also be tax penalties related to the cash surrender value.

Does whole life insurance pay dividends?

Participating whole life insurance features a professionally managed investment component that offers the potential to earn dividends based on market performance.

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