Insights, Tools and Tips
Only the most interesting and useful items that cross our desk each month.
Life insurance premiums are determined by many factors, with age being the starting point in all cases. The best strategy is always to plan and qualify for your life insurance coverage when you’re young and healthy.
If your searching for an online quote based on your actual date of birth, use the ‘instant quote’ form on this page. You’ll see a complete list of Canada’s best insurance companies and their pricing for your age and smoking status.
The need for life insurance is different for everyone and at every age. Generally, if you ‘love’ someone or ‘owe’ someone, you need life insurance.
Life insurance gets more expensive as you age, and careful planning is important. On this page you’ll get info on buying life insurance by age.
What is difference between Age Nearest and Current Age?
When it comes to birthdays, we generally think of our ‘current age’ and not age we’ll be turning after our next birthday. If we are 39, we’ll want to remain 39 until our actual birthday arrives and we hit the big 40. Then we may reluctantly agree to be age 40.
The insurance companies take a different view of age and make the calculation on ‘age nearest’. This means that once you are within 6 months of your next birthday – you become that age for quoting & pricing. So if are only 39.5 and have 6 months to go until the big 40 – the insurance company considers you 40 already and prices your insurance accordingly.
Can I back date my policy to ‘Save Age’?
The short answer is yes, and in some cases it makes good sense to backdate your policy once it has been approved by the underwriter.
Each scenario is different, and your agent will need to confirm the backdating rules of your chosen carrier and compare the premium difference of both options. If you choose to backdate your coverage, you will be asked to pay the premiums back to the date you wish the policy to ‘start’ on.
Buying a Life Insurance Policy in your 40’s
This age band is critical for your wealth creation and a set-back here can be devastating for a family or business. Most of our clients in this stage are early in their mortgages, reducing debt, saving for retirement and children’s education. These are all big burdens and life insurance is the bedrock of the risk management plan.
At this stage a laddered approach can make sense which means we can plan most of your future life insurance needs so you’ll never have to go through a new application again.
Here are some articles written specifically for people in their 40’s:
Buying a Life Insurance Policy in your 50’s
These are likely your highest earning years, and you’re likely focused on reducing debt and growing your retirement nest egg. Many of our clients want coverage to get them to retirement – effectively insuring their retirement planning for their spouse if some happens. This is also a good time to plan for final expenses, legacies and potential tax obligations.
Planning life insurance at this age is important because the premiums start to go up significantly with each passing year.
Here are some articles written specifically for people in their 50’s:
Buying a Life Insurance Policy in your 60’s
These are also your primary earning years and planning for you’ll be able to retire is top of mind in many cases. Some of people get to choose their retirement date and many others are thrust into retirement in other ways – your own health, lost employment, family caregiver.
In most cases the final estate plan is being finalized and there is still a good case for permanent or term life insurance. The most important thing to remember is that life insurance will start getting very expensive in this stage and it should not be delayed any longer.
There are many types of insurance policies including fully underwritten for those lucky enough to have no medical issues and simple issue options if a pre-existing medical condition might be an issue. In all cases a life insurance broker can help in choosing the right path.
Here are some articles written specifically for people in their 60’s:
Buying a Life Insurance Policy in your 70’s
You’re likely already retired or starting to get very close. At this point the most common need is final expense coverage, legacy planning or something specifically designed for estate planning and tax minimization.
A new policy will be expensive compared to younger ages but something is usually better than nothing and we can usually build a program that makes sense. In some cases, the children and grandchildren are the beneficiaries and will help pay the premiums
Here are some articles written specifically for people in their 70’s:
Planning is different for everyone at every age and this page will not cover all the bases. The very best advice is to speak with a professional life insurance broker about your specific situation.
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Please call us directly or use the form on this page to get an idea of the pricing available in Canada.