Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario, CEA®, Member of the Estate Planning Council Canada
Is life insurance worth it when you’re over 60?
Yes, life insurance can absolutely be worth it after age 60, especially if you want to protect your family, reduce estate taxes, preserve your wealth, or leave a legacy.
Many Canadians in their 60s have accumulated significant assets such as real estate, businesses, cottages, RRSPs, RRIFs, or investment portfolios that may create substantial taxes when they pass away.
Permanent life insurance can provide the liquidity needed to pay those taxes while allowing your family to keep the assets you worked so hard to build. It can also provide tax sheltered growth during your lifetime and a tax free benefit to your beneficiaries.
Who should get life insurance in their 60s?
Life insurance is often an excellent choice for individuals in their 60s.
If you have a growing estate, investment properties, a business, or significant registered and non registered investments, life insurance is often an excellent investment.
It is particularly valuable for those who want to reduce the impact of estate taxes and provide financial security for their spouse, children, or grandchildren. Business owners can also benefit from corporate owned life insurance, which provides tax sheltered growth and may allow the insurance proceeds to be distributed tax free to shareholders through the Capital Dividend Account.
If protecting your wealth is important, your 60s are often the ideal time to review whether life insurance should be part of your estate plan.
Is it difficult to get life insurance when you’re over 60?
Getting life insurance after age 60 can be more challenging because insurance companies place greater emphasis on your health and medical history.
However, many healthy Canadians are still able to qualify for excellent coverage, and even those with medical conditions often have more options than they expect. Every insurance company has different underwriting guidelines, so being declined by one insurer does not mean another company will reach the same decision.
Working with an experienced independent broker who understands the underwriting process can often make a significant difference.
What are the best types of life insurance for people in their 60s?
The best type of life insurance depends on your objectives.
Term insurance may still be appropriate if you only need temporary protection, while participating whole life, universal life, and Term to 100 insurance are often better suited for long-term estate planning.
Whole life and universal life insurance both provide lifetime coverage, tax sheltered growth, and a tax free death benefit, making them valuable tools for protecting wealth. The right policy is the one that fits your financial goals, your estate plan, and your family’s future needs.
Case Study: Estate Planning with Life Insurance Over Age 60
One of our clients was a successful 64-year-old real estate investor who owned several rental properties with substantial unrealized capital gains.
Like many experienced investors, they understood the value of using leverage to build wealth and recognized that the same principle could be applied to life insurance through an Immediate Financing Arrangement (IFA).
We helped them reposition a portion of their investment portfolio into a participating whole life insurance policy where the money could grow on a tax sheltered basis. The policy was then assigned to a bank as collateral, allowing them to borrow against it and reinvest those funds into additional real estate opportunities while still maintaining their liquidity.
Unlike a traditional investment loan that relies only on the performance of the investment to support the debt, an IFA is also backed by the life insurance policy itself, reducing the risk of margin calls or being forced to sell investments during a market downturn.
At the same time, the insurance created a growing tax free death benefit that will help pay future estate taxes, preserve the family’s real estate portfolio, and transfer significantly more wealth to the next generation.
Where should I buy life insurance in Ontario?
There is no single insurance company that is the best choice for everyone.
However, life insurance is often one of the longest lasting financial decisions you will ever make, so it is important to work with someone who will continue to provide advice and service long after the policy is issued.
At Strategic Wealth Protection Partners (SWPP), we regularly review existing life insurance policies and often find opportunities to improve coverage, reduce costs, or better align the policy with our clients’ current estate planning goals.
We also compare Canada’s leading insurance companies to find the insurer whose underwriting guidelines, products, and long-term service are the best fit for each person’s unique situation. When you buy life insurance, you are not simply buying a policy, you are choosing a long-term advisor who will help ensure your insurance continues to work for you and your family for decades to come.
Turn Life Insurance Into a Tax-Efficient Retirement Strategy
If you’re exploring strategies like an IRP or IFA, you’re already thinking beyond traditional planning.
These strategies can be powerful when designed correctly.
At Strategic Wealth Protection Partners, we help Ontario business owners, real estate investors, and high-income professionals use life insurance to:
- Supplement retirement income
- Access capital in a tax-efficient way
- Reduce taxes on their estate
- Preserve wealth across generations
The challenge is that these strategies involve multiple moving parts, including insurance, lending, and tax rules.
A small mistake in structure can significantly impact the outcome.
That’s why we focus on building fully integrated plans, not just recommending policies.
If you’re considering an advanced life insurance strategy, we’ll help you understand exactly how it works and whether it makes sense for your situation.
Schedule a Life Insurance Clarity Call
For high-income earners, business owners, and real estate investors, the biggest risk isn’t a lack of growth.
It’s taxation.
Without proper planning, a large portion of your estate will be lost to taxes, fees, and forced asset sales. Life insurance can help offset these costs and preserve more of your wealth for your family. But only if it’s used correctly.
But not every strategy is right for every situation.
That’s where SWPP comes in.
We design life insurance strategies as part of a complete estate plan, so every decision supports your long-term goals, not just a product recommendation. And if life insurance isn’t the right move, we’ll tell you.
We’ll show you all the wealth preservation options that apply to your exact situation, including living trusts, estate freezes, and life insurance.
Discover how to reduce and avoid taxes and leave a rock-solid legacy for the ones you love.
Read More
If you’re considering life insurance for estate planning, you may find these articles helpful:
- Why is it so hard to get life insurance in Canada?
- How much life insurance do I need at 60 in Canada?
- How much is a $1,000,000 life insurance policy for a 60-year-old man in Canada?
About the Author
RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS
With over 30 years in financial services, I’ve seen the challenges families face when a loved one passes—lost assets, unnecessary taxes, and emotional stress. That’s why I created the Living Estate Plan, a comprehensive process to protect assets, eliminate estate and probate fees, and create legacies that are remembered for many years to come.
This plan ensures your family receives not just your wealth, but a meaningful reminder of your care and love. Tools like The Final Word Journal capture your story, wishes, and essential details, offering clarity and comfort during difficult times.
Your final gift should be more than money—it should be peace of mind, cherished memories, and an organized estate.
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