Life Insurance for Seniors vs. Young Adults: What You Need to Know
Table of Contents
Key Takeaways
- Life insurance premiums typically increase by 8 to 10 percent every year you wait to apply.
- Young adults benefit from low rates and flexible coverage terms.
- Seniors have fewer options but can still find meaningful coverage, even without a medical exam.
- Term life works best for younger people; seniors tend to lean toward permanent or whole life insurance.
- Living benefits and cash value options can serve both age groups in different ways.
- The reason for coverage often differs: young adults protect income and dependents; seniors aim for legacy and final expense planning.
Age Isn’t Just a Number When It Comes to Life Insurance
If you’re thinking about life insurance for the first time, your age has a lot to do with what’s available to you.
The older you get, the fewer options you have and the harder it is to get the coverage you want. Harder, but not impossible.
At McIver Insurance Inc., we help families and businesses across Nova Scotia find the right life insurance policy that fits their stage in life, their budget, family needs, and long-term financial goals.
So, whether you’re in your 20s and buying your first policy, or your 60s planning for your retirement or estate, this is what you need to know.
How Age Impacts Premium Costs
The bottom line: Life insurance gets more expensive the older you get.
According to Ted Bernstein, Director, Life Insurance Concepts Inc., premiums rise about 8% to 10% each year you wait to apply.
This is because life insurance premiums are calculated based on actuarial life tables that assess the risk of death for active policies.
The older you get, the higher the likelihood of that day coming. Thus, higher premiums.
Let’s assume you are a healthy, non-smoking 30-year-old male. If you were to look for a $500,000 coverage life insurance policy today, you would likely pay around $30/month for a 10-year term policy and about $45/month for a 20-year term policy.
However, let’s say you are a healthy, non-smoking 50-year-old male. This same policy would now cost you over $100 per month for a 10-year term and approximately $180 per month for a 20-year term.
Thus, buying younger can often be highly beneficial as it means locking in lower rates for decades and potentially saving thousands in premium payments.
Best Policy Types for Seniors vs Young Adults
| Age Group | Recommended Policy Types | Why It Works |
| Young Adults | Term Life Insurance | Affordable, flexible, great for income protection and short-term goals |
| Seniors | Whole Life, Guaranteed Issue, Final Expense | No expiry, fewer health hurdles, and useful for estate planning |
Younger people tend to favor term policies that align with major financial milestones, such as paying off student loans, buying a home, and raising children.
On the other hand, seniors often require more specialized policies, such as permanent life insurance or guaranteed issue plans. This is especially true if they have health issues.
To learn more, check out our blog: What life insurance coverage is most appropriate at various life milestones?
Underwriting and Health Considerations for Seniors vs Young Adults
Young adults usually pass medical underwriting easily, as generally, the younger you are, the healthier you are. That means cheaper premiums and more choices for young adults.
Seniors, on the other hand, may have more trouble when it comes to passing medical underwriting.
Seniors may be required to take extensive medical exams, face more questions about medications or chronic conditions, and have fewer policy options with strict health criteria to begin with.
Some Canadian insurers offer no-medical-exam or simplified-issue life insurance for older applicants. However, these options usually come with much higher premiums and lower coverage amounts.
While they can still be practical choices for many, it is always best to consult with a licensed insurance broker to help you find the best policy for your needs.
Coverage Needs Across Life Stages: Seniors vs Young Adults
Depending on your life stage, your coverage needs may be drastically different.
For example, if you are in your 20s or 30s, you are likely considering a life insurance policy to cover student loans or a mortgage, support young children or a partner, or replace lost income.
However, if you are in your 60s or 70s, life insurance is generally a means to:
- Cover final expenses like funeral costs
- Leave behind a financial gift or legacy
- Support estate planning or charitable donations.
The goals may be different, but they are all equally valid. What’s important is to ensure your policy always matches your reasons for buying it.
Permanent Life Insurance Policy Features: Living Benefits and Cash Value
Permanent life insurance policies come with living benefits and cash value features that work while you’re still alive.
Young adults can use policies to:
- Build cash value for future borrowing or retirement support
- Tap into living benefits if diagnosed with a critical illness
Seniors can use their built-up cash value to:
- Cover long-term care needs
- Pay for home upgrades to support aging in place
Affordability and Accessibility
If you are just starting your career, budgets can be tight. Thus, young adults usually look for policies that are low-cost and easy to scale as income grows, while offering optional add-ons or riders like critical illness or disability riders for added short-term financial protection.
For seniors, costs are usually higher, and accessibility can be limited.
Seniors will generally need to accept higher premiums for smaller coverage amounts to benefit from policies that guarantee acceptance.
Digital Trends and Buying Behaviour
The rise and popularity of no-medical-exam options and digital life insurance platforms have made securing life insurance a lot easier for both groups.
Online tools have changed how Canadians buy insurance.
Younger Canadians usually compare quotes using online calculators or trust financial influencers and social media gurus for advice.
Even seniors are turning to online application tools, as these usually come with fewer forms and faster processing times.
However, while digitization has made getting life insurance easier, it is always in your best interest to speak to a broker who can explain things clearly and answer questions fast.
They can guide you on how to tackle specific concerns and can broker policies that offer better coverage and lower premiums than what you would be able to find on your own.
Long-Term Value and Financial Strategy
Young adults see life insurance as part of a bigger financial picture. They see it as a tool for wealth building, retirement security, and income protection for their loved ones.
Seniors see life insurance as a means of protecting what they have already built. Life insurance can be a useful tool for passing down assets or clearing debts, succession planning, and as a means for covering health-care or other long-term costs.
Comparison Chart: Seniors vs. Young Adults
| Factor | Young Adults | Seniors |
| Cost | Lower premiums | Higher premiums |
| Medical Exam | Often required, easy to qualify | Sometimes optional, it can be a barrier |
| Best Policy Type | Term life | Whole life, guaranteed issue |
| Reason for Coverage | Income protection, family planning | Final expenses, legacy support |
| Living Benefits | Often included in permanent plans | Useful for long-term care or emergencies |
| Digital Accessibility | Embrace online tools and quotes | Prefer guidance with simplified tech |
Conclusion: Life Insurance Looks Different at Every Age
Whether you’re starting your first job in your 20s or reviewing your estate plan in your 70s, life insurance plays an important role in your financial journey.
At McIver Insurance Inc., we believe in making insurance simple, personal, and local. We help Nova Scotians of all ages find coverage that makes sense and feels good. No pressure. Just smart, personal advice. Let’s help you protect what matters most.
Call Pat McIver now at 1-902-220-3279 or schedule a no-obligation 30-minute meeting by clicking here.
FAQs
Q1) What happens if I buy life insurance and my health changes later?
If your policy is active, your rate and coverage usually stay the same, even if your health changes.
Q2) Can seniors still get life insurance if they’re in poor health?
Yes. Guaranteed issue and no-medical-exam policies are designed for this exact situation, though they come with limitations.
Q3) Should I buy life insurance if I don’t have kids?
Yes. Even without dependents, you might want to cover debts, final expenses, or leave a gift to someone or a cause you care about.
Q4) How do I know how much coverage to buy?
A good rule is to add up your debts, final expenses, and income replacement needs, then subtract your current assets. We can help you fine-tune the numbers.
