Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario, CEA®, Member of the Estate Planning Council Canada
How much does $1M in life insurance cost for a 60-year-old?
In Canada, a healthy 60-year-old man can generally expect to pay from approximately $345 per month for a $1,000,000 term life insurance policy.
Meanwhile, permanent lifetime coverage typically starts around $1,806 per month.
A healthy woman of the same age will often pay less because women generally have a longer life expectancy. Your actual premium will depend on factors such as your health, smoking status, medications, and the type of policy you choose.
Beyond basic coverage, there are also many permanent life insurance options that provide additional benefits, including tax-sheltered growth, the ability to use tax-efficient dollars to fund premiums, access to cash value, and a tax-free payout to your beneficiaries.
Permanent life insurance is a valuable tool for retirement, estate planning, and wealth preservation.
Which types of life insurance can you get in your 60s?
Canadians in their 60s still have access to several life insurance options, including:
• Term Life Insurance for temporary needs such as protecting debt or providing income replacement.
• Whole Life Insurance for guaranteed lifetime protection, tax-sheltered growth, and estate planning.
• Universal Life Insurance for lifetime coverage combined with flexible tax-sheltered investment growth.
• Term to 100 Insurance for permanent lifetime coverage without a cash value component.
• Simplified Issue or Guaranteed Issue Life Insurance for individuals with health concerns who may not qualify for traditional coverage.
Many people in their 60s are surprised to learn they can still qualify for excellent coverage, especially if they are in good health. The right solution depends on your financial goals, your family situation, and whether your priority is protection, wealth preservation, or reducing taxes.
What is the best type of life insurance for growing your wealth?
For Canadians focused on long-term wealth accumulation, participating whole life insurance and universal life insurance are generally the strongest options.
Both allow your money to grow on a tax-sheltered basis while providing a tax-free payout at death. In addition to protecting your family, these policies can become valuable financial assets that support retirement, estate planning, and wealth transfer.
The best choice depends on whether you prefer guaranteed growth and stability or greater investment flexibility.
Can you use life insurance as an investment in Canada?
Permanent life insurance is commonly used as a tax-efficient investment and estate planning strategy by successful Canadians.
Policies such as whole life and universal life allow investments to grow on a tax-sheltered basis, helping your wealth compound more efficiently over time. In many cases, policy values can also support borrowing strategies during retirement while preserving the insurance protection.
At death, the policy pays a tax-free benefit, and for corporate owned policies, the proceeds can often be distributed tax free to shareholders, making life insurance one of Canada’s most tax-efficient financial planning tools.
Example of $1M in Leveraged Life Insurance
A leveraged life insurance strategy is also known as an Immediate Financing Arrangement (IFA).
It is often used by higher net worth Canadians who want to maximize the tax efficiency of their investments while preserving their estate. Imagine a healthy 62-year-old who contributes $83,000 per year into a properly designed permanent life insurance policy.
The money inside the policy grows on a tax-sheltered basis, while the policy is assigned to a financial institution as collateral for a loan. The bank then lends the client approximately $83,000, allowing them to replace the capital they deposited into the policy and reinvest it into income-producing investments or their business.
When the arrangement is structured properly, the interest on the loan may be tax deductible, reducing the after tax borrowing cost.
For example, if the interest rate is 5% and the client is in a 50% marginal tax bracket, the effective after-tax borrowing cost may be approximately 2.5%, depending on the client’s circumstances and applicable tax rules.
The result is that the client now has tax-sheltered growth inside the insurance policy, a second investment that has the potential to appreciate over time, and a $1,000,000 tax-free life insurance benefit protecting the estate.
If the investment earns more than the after tax cost of borrowing over the long term, the strategy has the potential to significantly enhance overall wealth while also reducing future estate taxes.
Where should I get life insurance in Ontario?
The best place to obtain life insurance in Ontario is through an independent advisor who has a planning first approach.
You should work with an advisor who will compare multiple insurance companies and help determine which solution best fits your financial goals. At Strategic Wealth Protection Partners (SWPP), we begin with our Living Estate Planning Process, where we first identify your estate tax exposure, future financial objectives, and the role life insurance should play within your overall plan.
Rather than recommending a policy first, we evaluate all of the available planning options and determine whether life insurance is truly the right solution for your situation.
This planning-first approach helps ensure you purchase the right type and amount of coverage while integrating it into a strategy that protects your family, reduces taxes, and preserves your wealth for future generations.
Discover the Benefits of a Tax-Savvy Life Insurance Strategy
Are you an Ontario resident who wants to protect, build, and transfer your wealth seamlessly to the next generation without excess taxation or family drama?
At Strategic Wealth Protection Partners, we’re here to guide you through every step of the estate planning and life insurance process with expert advice and personalized support.
Find out more about how you can use life insurance to secure your family’s legacy and build generational wealth. Schedule a Life Insurance & Estate Planning Clarity Call.
Avoid the Biggest Wealth Killer in Canada
Taxation is the biggest wealth killer in Canada.
If you’ve worked hard and built substantial assets, then it’s frustrating to know that 50% or more of your assets will go to the government when you die.
That’s where SWPP can help.
We create estate planning and life insurance strategies designed to secure your family’s legacy and preserve generational wealth.
But planning your legacy is about more than numbers. It’s about ensuring your family remembers you and your values are honoured for many years to come.
Estate planning, life insurance, and generational wealth planning can be confusing and complex.
With our comprehensive Living Estate Plan process, we make it easier for you. We’ll do a full assessment and walk you through all of your options including trusts and insurance.
From there, you can take action knowing what the real numbers are and how they’ll affect your family and your wealth.
Read More
If you’re considering life insurance for estate planning, you may find these articles helpful:
- Is It Worth Buying Universal Life Insurance in Canada?
- How Much Life Insurance Should I Have at 40 Years Old?
- Can You Outlive Universal Life Insurance 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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