Legacy, Not Liability: Why Life Insurance Still Makes Sense in Your 70s
For many Canadians in their 70s, life insurance might feel like something that belongs to a different chapter of life — the one filled with young children, mortgages, and career-building. But what many people don’t realize is that the right kind of insurance in your 70s can be one of the most effective tools to protect your estate, support your loved ones, and create a lasting legacy.
At Quantum Planning Group, we often hear clients say, “I thought I was too old for insurance.” But in reality, insurance at this stage of life serves a different — and often more impactful — purpose.
1. Insurance as a Tax-Free Wealth Transfer Tool
One of the most powerful benefits of life insurance is that it provides a tax-free death benefit to your beneficiaries. Unlike registered investments, which may be taxed at death, insurance proceeds bypass probate and go directly to your named beneficiaries.
For example, if your estate includes a family cottage, rental property, or non-registered investments, your estate may owe capital gains tax upon your passing. A permanent life insurance policy — even a small one — can ensure that your family doesn't have to sell a cherished property or dip into other assets just to pay the tax bill.
2. It’s Not Just About Death — It’s About Certainty
At this stage in life, many clients are focused less on accumulating wealth and more on preserving it — and on protecting the people they care about. A permanent life insurance policy can provide peace of mind, knowing that there’s a guaranteed amount set aside to support your spouse, children, or grandchildren when the time comes.
Some policies even include a cash value component that can be accessed while you're still living — giving you flexibility if your financial needs change.
3. Planning for Final Expenses
Even modest final expenses, such as funeral costs, legal fees, or last medical bills, can quickly add up. A life insurance policy earmarked specifically for final expenses ensures that your loved ones aren’t left scrambling at an already difficult time.
We often help clients set up small whole life policies — sometimes as little as $25,000 to $50,000 — that are affordable, guaranteed, and simple to manage.
4. Protecting a Loved One with Special Needs or Complex Needs
If you have a dependent spouse, adult child with a disability, or a vulnerable family member, insurance can provide a structured, protected source of income for their care. In some cases, proceeds can be directed to a trust to ensure the funds are used responsibly and to preserve government benefits.
5. Gifting Insurance to the Next Generation
You can also use life insurance to benefit your children or grandchildren. For instance, some clients take out permanent policies on their adult children or grandchildren, funding them as a form of “living inheritance.” These policies can accumulate cash value over time and provide a future tax-free benefit — helping to pay for education, a home down payment, or even retirement.
What If I’m Not in Perfect Health?
Many people assume that health issues make life insurance unattainable in their 70s — but that’s not always true. While underwriting is more selective at older ages, there are simplified-issue or guaranteed-issue policies available that don’t require medical exams. They may offer smaller coverage amounts, but for covering final expenses or creating modest legacies, they can be incredibly useful.
What Type of Insurance Is Best at This Stage?
For most people aged 70–85, permanent insurance (such as whole life or guaranteed universal life) is the most appropriate choice. These policies:
Don’t expire as long as premiums are paid
Have level premiums that don’t increase
May include cash values or dividends
Can be structured to be paid up in a limited number of years
At QPG, we often review a client’s current policies to assess whether they’re still serving their intended purpose — and explore new options that might better meet current goals.
Life insurance in your 70s isn’t about risk anymore — it’s about certainty. It’s about ensuring your family is supported, your estate is protected, and your legacy lives on.
If you’re wondering whether a policy you hold is still the right fit, or if adding coverage might benefit your family, we’re happy to walk through your options with you — no pressure, just clarity.