Is there an age limit for taking out life insurance?

The regulations do not set an age limit for taking out a life insurance contract. Each insurance company therefore sets its conditions, and be aware that insurers do not like late underwriting after 80 years. Thus, it is possible to take out life insurance at any time in your life: but beware of premium increases and restrictions that multiply as you get older.

50+ insurance, a targeted product

There is a specialized product, created expressly to meet the needs of people over the age of 50: this is life insurance 50 and over which can be offered with a medical examination or a simple questionnaire. This insurance can help loved ones take on:

    Funeral costs
    Repayments of accounts and loans
    Expenses related to medical treatment
    The mortgage balance

But this insurance premium can also finance the education of the grandchildren or be left as an inheritance.

Customers who are very old or in poor health who wish to purchase a life insurance policy turn to the no-medical exam offered by a dozen companies. And most of the time, they are offered two options:

    a simplified issue life insurance whose projected payment period, indemnities or the possibility of signing an endorsement such as critical illness insurance vary according to the age of subscription.
    life insurance with guaranteed issue: although this contract does not provide for a waiting period, it is accompanied by high premiums which are generally double those of a simplified issue contract.

Watch out for restrictions

Many insurance contracts are concluded without a medical examination, by people who have already been refused or who believe they have been turned away when trying to obtain conventional life insurance. However, we note with regard to this type of contract:

    That the premiums are generally much higher than those of policies contracted with medical examination
    There is often a waiting period, that is to say a period during which the beneficiaries cannot benefit from the guarantee. Thus, if the insured dies within two or three years of taking out the contract, the amount of insurance is not paid to the beneficiaries, the insurer merely reimbursing the premiums paid.
    Some of the companies also exclude certain causes, such as Alzheimer's disease, cancer, terminal illnesses or even strokes and heart attacks.

You are taken, but at what cost

Logically, the older you are when you take out the contract, the higher the premiums. But that's not all: some companies accept policyholders of all ages and in return do not guarantee the amount of premiums. This is how policyholders see their premiums soar, and even double from year to year. However, they do not want to or cannot pay these new amounts: but if they do not pay, it is simply a matter of them having contributed for years for nothing.

The Guaranteed Life Insurance Plan

For Canadian residents aged 40 to 75, there is a Guaranteed Life Insurance Plan which is an attractive formula characterized by:

    A fixed premium starting at $ 20 / month
    A two-year waiting period, with a refund of premiums if the insured's death occurs within the first two years
    Benefits that do not drop and can reach up to $ 50,000 in basic benefit and $ 250,000 in accidental death benefit
    Guaranteed acceptance, whatever their state of health
    No taxes on amounts received by beneficiaries
    A benefit in effect until age 95 as long as the premium is paid

Even if in theory, there is no age limit for taking out a life insurance contract, in practice, the older you get, the more things get complicated: premiums rise, and restrictions become more complicated. multiply. It is therefore wise to take out insurance as early as possible in order to benefit from conditions which remain advantageous.