All Guides

What is Life Insurance?

Older woman looking at tablet

As you get older, it’s natural to think about the future. How will you spend your golden years, and what will happen to the people you love when you pass away? While it’s not a topic anyone wants to dwell on for too long, being financially prepared can take a lot of the pressure off, leaving you free to live life to the fullest. This is where life insurance could help you.

What is life insurance?  

In basic terms, life insurance is a way to secure a sum of money that can be claimed by a beneficiary after you pass away. When you take out a policy, you’re making an agreement to pay a monthly sum (premiums) to your insurance provider, and in turn they’ll pay out an agreed sum of money to your legal beneficiary after you’re gone. 

We know that your needs and priorities can change later in life, which is why policies with Seniors Choice are designed with you in mind. Available to Canadian residents aged 40-801, getting Canadian Seniors Life Insurance is convenient, genuine and straightforward. 

Do I need life insurance?

Life insurance can be a helpful option for many people. If you have debts or other financial obligations that you wouldn’t want your loved ones to inherit, it can give you peace of mind to put some protection in place. It could also be helpful if you have dependents, or if you want to leave a gift behind for your kids or grandkids. 

Is Canadian Seniors Life Insurance something different?

Canadian Seniors Life Insurance is only available to buy directly from Seniors Choice. This means that you won’t have to wait around and fill out endless forms to get coverage.  

It’s an age-based whole-of-life insurance policy. As the name might suggest a whole-of-life policy is a type of life insurance that will last you the rest of your life, as long as you keep up with the monthly payments. An age-based policy is a type of life insurance where what you pay each month will increase each year based on your age. So, this means that the premium will start off smaller and gradually increase over time. This increase happens every year on your policy anniversary.  

This increase in your monthly premium also means that your benefit amount will increase each year by 3%.  This kind of protection will consider the rising cost of living when the lump sum payment is needed for your loved ones. You have the choice of opting out of this benefit increase whenever you please. If you opt-out for three consecutive years, your benefit will no longer automatically increase, and your coverage will remain level. It’s important to note that your monthly premium will continue to increase each year, even if your benefit amount no longer increases.  

If you would like to get more information about the coverage offered by Canadian Seniors Life Insurance, we can send you out a free information pack. It can help break down the ins and outs of Seniors Choice, to help you feel confident that your policy meets your needs. 

How do I get Seniors Choice coverage?

Part of what makes us stand out from other providers is the fact that our coverage is available exclusively through Seniors Choice. This means that you can be sure you’re getting the best price with no additional broker fees, and you’ll also have the benefit of dealing directly with trusted advisors who know our policies inside out.  

Getting covered with Seniors Choice couldn’t be easier – if you’re a Canadian resident aged 40-801 you can apply for coverage. All you will need to do is speak to our friendly Canadian based customer service team at . They are available to help you Monday to Friday 9am to 8pm ET (excluding public holidays). It only takes a few minutes to secure coverage over the phone, helping you to secure peace of mind without the stress. 

What is covered under my policy?

Canadian Seniors Life Insurance is a whole-of-life policy, which means that you’ll have coverage for as long as you continue to pay your premiums. Once you secure a policy, you’ll have coverage immediately apart from suicide within the first two years of your policy. After that two-year period, you will have full coverage from death by any cause.

How much coverage can I get?  

You can get coverage of up to $250,000, depending on your age - with a minimum benefit amount of $10,000. The amount of coverage you can apply for will depend on your age when you are applying. Here is a breakdown of the coverage amounts that you can apply for depending on your age:  

  • 40 – 60 (Maximum $250k)  
  • 61 – 70 (Maximum $200k)  
  • 71 – 80 (Maximum $150k) 

The amount of coverage you choose will depend on what you need it for – will your life insurance cover your funeral costs or outstanding debts, or is the payout simply a gift to help your kids and grandkids live a full and happy life? Whatever your needs may be, it’s also important to consider how much you can afford to pay monthly and choose a benefit amount within your budget.  

For more guidance on choosing a cover amount, check out our handy guide How Much Life Insurance Do I Need? You can also use our life insurance calculator to help you figure out what benefit amount might work best for you.  

What types of cover are there? 

The monthly cost of your coverage is largely determined by the type of policy you choose. The monthly cost of your coverage is largely determined by the type of policy you choose. All Canadian insurers offer different types of life insurance policies, which means that the costs involved can vary. At Seniors Choice, we offer age-based whole-of-life insurance policies. This means that the monthly cost of your policy will increase each year based on your age and the benefit amount will increase each year by 3%. It also means that if you continue to pay your premiums you will have coverage for the remainder of your life. Whatever your protection needs, you can feel confident that you’re getting affordable coverage with Seniors Choice. In fact, you could get coverage from as little as $14.88 per month2

How much will my premiums cost?

After you’ve gone through the application process and answered a couple of health and lifestyle questions and been approved, we’ll calculate your premiums. This is the monthly cost of your coverage which you’ll pay each month until you pass away. With Seniors Choice, premiums start from just $14.88 per month2, but there are a few things to take into consideration.  

To calculate your monthly premiums, we’ll consider your age, gender, smoker status and how much coverage you would like. One tip to consider is that the younger you are when you take out your policy, the lower the rate we can offer, so it’s a good idea to get in touch as soon as possible. For more on what might affect your premiums, see our helpful guide How Much Does Life Insurance Cost? 

Is life insurance taxable? 

Life insurance benefits are not taxable in Canada, but there may be other costs associated with your state. 

Why go with Seniors Choice?

We’re here to offer you stress-free life insurance that suits your needs, so you can live your life to the fullest with nothing to hold you back. Here are a few more reasons why Seniors Choice may be right for you:  

  • Up to $250,000 of coverage – You could secure as much up to $250,000 of coverage depending on your age. 
  • Terminal illness advance – If you are diagnosed with a terminal illness3 you can receive an advance pay out, so you’ll have support for medical costs and other expenses. 
  • Whole of Life - As long as your premiums are paid, you and your loved ones can rest easy knowing you’ll have protection that lasts a lifetime.

We're here to help

Deciding on a life insurance policy is a big step and often a lifelong commitment, so it’s important to understand the ins and outs of any policy you choose. If there’s anything you need to know, we’re here for you. Just give our friendly Canadian based customer service team a call at 1-844-997-0940. They are available to help you Monday to Friday 9am to 8pm ET (excluding public holidays). We’ll be happy to get you a free no obligation quote, answer any questions you have, or even get you covered over the phone in just a few minutes.

1

Available to Canadian residents aged 40-80 only. Not yet available in Quebec.

2

For a 51-year-old female non-smoker with $20,000 of coverage.

3

A medical professional has to diagnose the terminal illness, diagnosis is subject to the standard terms and conditions in your policy.