What is senior life insurance?
Life insurance for seniors is an important part of retirement planning for Australians. It provides a lump sum benefit to your nominated beneficiaries if you pass away, which can be used to cover a range of expenses, like any remaining debt you may have or funeral costs.
What types of senior life insurance are there?
Life cover: Term life insurance that pays a lump sum to your beneficiaries if you were to pass away during the policy term.
Total and Permanent Disability (TPD) cover: Receive a lump sum benefit if you are permanently unable to work due to illness or injury.
Trauma cover: Lump sum payment if you experience a medical condition specified under your policy; this can be particularly beneficial for seniors who are more likely to be affected by certain conditions.
Seniors Funeral Insurance: Specifically designed to cover the costs of a funeral, you can usually take out anywhere from $1,000 to $30,000 in cover.
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Before he came to us, Frank was paying for three separate insurance policies that were costing him over $10,000 a year. He was frustrated and disappointed with his insurers but didn’t know where to start.
With the help from one of our Senior Advisers he was able to amalgamate his policies into one comprehensive plan. With a new yearly premium of $6,000, and an insurer that has paid out over $2 billion in claims to Australians over the past two years Frank’s family was better protected and he was paying less.
Frank has since returned to us and we’re helping him with his Income Protection claim. As he recovers from knee surgery this money will help him support his family while he’s unable to work.
After years of paying premiums to the same insurer Maggie found herself in trouble when they suddenly refused to renew her policy. Due to a change in her health and her finances, she was told that no insurers would protect her. That’s when she came to us.
Our advisers were not only able to get Maggie the peace of mind that an underwritten life insurance policy brings; they also helped her save a few thousand dollars on her yearly premium. She was even able to save on her out of pocket expenses by opting to fund the new premium through her SMSF (self-managed super fund).
Maggie is now in the process of upping her cover to include a Trauma Insurance benefit with the help of one of our Senior Advisers.
With our help she’s making the journey from uninsurable to fully protected.
The amount of senior life cover varies depending on your situation, but here are a few things to consider when deciding how much life insurance is right for you.
How much do you owe on any outstanding debts, like a mortgage or car loan? Your life cover should at least be equal to this amount.
What financial obligations will fall to your spouse, and how much will he or she need to meet those?
Life cover can also take care of legal fees, funeral expenses, and financial advice, so you may want to include these costs when deciding on the amount of your cover.
What types of cover do you want? For example, you may wish to take out combined life cover and Australian seniors funeral insurance.
Over 50 life insurance works much like it does at any other age, but there are extra factors to think about. Your cover provides a lump sum that can relieve your loved ones of financial pressure if you die, so they don’t have to worry about covering any outstanding debts or final medical expenses. If you have a spouse, they won’t have to dip into a savings account, either.
Premiums do increase with age, but you can still save hundreds of dollars by comparing life insurance policies to find the best price. Visit LifeInsuranceComparison.com.au today for a free quote on low-cost policies and financial advice from an insurance professional. Over 50 insurance works best when it is tailored to your financial situation.
The cost of senior life insurance depends on your age, health, gender, and lifestyle. Here are some average monthly senior life insurance premiums based on recent quotes:
Male age 50: $234.62
Female age 50: $69.63
Male age 65: $666.43
Female age 65: $419.17
Male age 70: $1,242.05
Female age 70: $754.80
Once again, your individual needs will determine what life insurance policy is best for you. However, there are several benefits to consider when comparing senior life cover:
Age requirements: Many policies have a maximum age of entry, which can be anywhere from 59 to 79 depending on the type of policy.
Pre-existing medical conditions: Not all pre-existing conditions are covered, but there may be alternative options if you have one.
Tax-free inheritance: A life cover payout can be a way to pass on money to your children without subjecting them to inheritance tax.
Indexation: Some policies offer cover that increases every year in line with inflation.
Premium freeze: Keep your premium the same by reducing the sum of your cover each year.
Financial planning benefit: An advance sum is paid to your beneficiaries while the claim is being processed,which can be used towards legal or estate fees.
Remember that these figures are only an average, and a better deal can often be found by shopping around.
Get a benefit advance of up to $20,000 while the claim is being processed to help with funeral expenses.
Get reimbursed up to $5,000 for the cost of a financial adviser when receiving a payout of $100,000 or more.
Receive a lump sum payment if you are diagnosed with a terminal illness, with no obligation to return the funds if you overcome it.
Choose from stepped or level payments to control the amount of your premium.
Offers a lump sum payout of up to $15,000 if you pass away, to cover final expenses.
Double the cover amount by including an optional Accidental Death Benefit.
Guaranteed acceptance if you’re between ages 50 and 70, no medical required.
Claims usually paid within two business days, so your loved ones aren’t put in a difficult financial situation.
*Note that OnePath insurance is issued through the ANZ brand.
Apply if you’re between 18-74 years old
Apply for a minimum of $100,000 in cover and a maximum of $1.5 million.
Choose to buy cover through your self-managed super fund
Under-61s can add premium relief to their policy to waive premiums if they are unable to work for more than three months in a row due to illness or injury, up to age 65.
Finding cheap life insurance for over 60 year olds can become more challenging, but it is possible if you are willing to compare prices. While not everyone will have the same idea of what makes up a cheap policy, the important thing to look for is value for money.
Some of the cheapest life insurance policies for seniors on the market are:
Male age 50: $214.16 per month
Female age 50: $58.27 per month
Male age 65: $620.40 per month
Female age 65: $368.47 per month
Male age 70: $1,139.62 per month
Female age 70: $631.76 per month
If you’re buying life cover for the first time, don’t worry if it seems overwhelming. To simplify the process and get a low price, compare cover for seniors with LifeInsuranceComparison.com.au. You’ll get a quote on the policies that have the features you want, plus receive complimentary financial advice from an insurance professional.
The benefits of senior life cover offer peace of mind knowing that your death will not lead to financial stress for your loved ones. Here are some of the ways life cover can help support the family you leave behind.
Pays for outstanding debts: If you have debt remaining on your mortgage, it may fall to your next of kin when you pass away. Life cover prevents that from happening.
Keeps your savings safe: Your family won’t have to dip into savings to cover legal fees, medical costs, or funeral expenses
Funeral costs: Funerals aren’t cheap, and they can create stress among family members if there isn’t enough money to pay for them. Life cover takes care of that problem.
Medical expenses: Life cover isn’t just for after death. Combined life insurance, such as life cover + TPD can provide cover for medical expenses incurred from a serious illness or injury.
Fills the gap: Life cover may provide in ways that other insurance, such as Australian seniors travel insurance, does not.