Life can be unpredictable no matter your age; nobody can foresee the future!
A life insurance policy can protect your loved ones from the burden of picking up sudden expenses should the worst happen to you, like death or terminal illness. That is why acquiring a suitable level of cover as a senior can be important.
Even if you’ve built up a nest egg over the years, life insurance gives you peace of mind, knowing your family won’t have to reach into your hard-earned savings to cover any unexpected costs. Many seniors who have reached (or are approaching) retirement seek to safeguard their family’s financial stability through a life insurance policy. We’ll take you through everything you need to know about life insurance for senior Australians.
Can senior Australians and residents take out life insurance?
Life insurance is available to most senior Australian citizens (typically between the ages of 60 and 75), provided they don’t have any serious pre-existing conditions. In some cases, you may be required to take a medical exam or have blood tests during your application, but this is relatively common even when purchasing cover earlier in life. The cost of your premiums depends on various circumstances, such as your current health status, medical history and how much life insurance cover you need.
Both permanent residents and those who are living in Australia without permanent residency may be eligible for life cover; however, there may be different application and procedural assessments, which are dictated by each insurer. Therefore, it’s imperative to check with your life insurer if you’re considering taking out cover. Generally, seniors who are not Australian residents applying for life insurance need to meet the following requirements:
- You’re from a listed country classified by the federal government (Level 1 or 2).
- You’ve been living in Australia for at least 12 months (with an intention to stay longer).
- Your visa status is accepted by the insurer.
What is the cost of life insurance when you’re a senior?
For seniors, life insurance costs can depend on many factors, such as the life insurance provider and the type of policy you choose. Generally, life insurance premiums tend to get more expensive as you age, but this is not always the case. For example, someone who lives a dangerous or unhealthy lifestyle could end up paying more for their policy than someone who is older.
The underwriting process differs between life insurance companies, so it might be a good idea to compare quotes from multiple insurers to find the best life insurance policy for you.
What options are available for seniors looking at life insurance?
There are several different types of life insurance available. Each type of cover varies in its purpose, conditions, payout type and minimum and maximum age limits. Four of the most common life insurance options are: