How to Get Life Insurance for Senior Citizens Living in Australia
The Australian population is ageing. According to the Australian Bureau of Statistics, the proportion of people aged 65 and older have increased to 15.3%. 9.7% of which need assistance with core activities, like mobility, communication and self-care.
What’s more, at the start of 2018 payments for carers have gone up an extra $2.40 a fortnight to remain in line with inflation, which is especially concerning if you have Dementia. Getting older is becoming more and more expensive.
Purchasing life insurance when you’re over 50, 60 or more needs to be easy, available and at an affordable price.
However, because older Australians are so diverse, with different age groups, responsibilities, and lifestyles, it makes sense that there’s no ‘one-size-fits-all’ option.
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5 reasons why people over the age of 65 might still need life insurance
- Unpaid debts: You might still have outstanding mortgage payments or debts, and you need help covering these end-of-life expenses.
- You're still providing for someone: Even when your children are financially independent, you might be caring for an elderly parent or your spouse.
- Changing circumstances: You may have re-mortgaged your property, or perhaps you or your spouse requires frequent medical assistance. Life insurance could help secure your financial future in these changing circumstances.
- Estate equalisation: Life insurance gives you an easy, cost-effective solution to estate equalisation so that you can keep your business, holiday home, and other assets in the family by leaving the assets to one beneficiary while providing the others with a payout from your life insurance policy.
- You want to leave a legacy: Many retirees keep their life insurance policy for the benefit of leaving their loved ones with an inheritance.
What seniors should consider when reviewing their insurance needs
- Home modification: You may need to install ramps or safety features to your home due to decreased mobility.
- At home assistance: You and/or your partner may need someone to help you with your daily tasks.
- Ongoing medical care: Due to improvements in medical care you are more likely to survive treatment, thus requiring a greater need for continuing care.
- Nursing home care: You may need 24-hour care if any of the above is no longer a viable option.
Seniors in Australia can choose from several life insurance products, depending on your needs. Although there is no specific Long Term Care insurance product available, we do have life insurance solutions that can provide either a lump sum benefit or monthly payments to help you with the costs of living.
Best life insurance for senior citizens
- Term life insurance: Generally, provides a lump sum payout to your nominated beneficiaries when you die or are diagnosed with terminal illness. The typical maximum entry age ranges from 50 to 75, with a general expiry age of 100, depending on your insurer.
- Trauma insurance: If you suffer from one of the critical illnesses listed in your policy documents, the insurer pays you a lump sum benefit. The typical maximum entry age is 59, and as long as you continue to pay your premiums, your trauma insurance policy could last up to your age 70.
- Modified TPD Insurance: Pays a lump sum to you if you become totally and permanently disabled due to an accident or illness. Disability entails an inability to care for yourself which includes eating, drinking, bathing or showering without assistance.
- Funeral Insurance: Provides your beneficiaries with a lump sum to be explicitly used for your funeral expenses. The typical maximum entry age is 80.
- Living Expenses cover: Usually pays a monthly benefit if you become significantly disabled (for example, unable to dress yourself or use the bathroom) due to an accident or illness, and remain so during your waiting period.
With a combination of term life, TPD, trauma and living expenses cover, you can structure a comprehensive personal insurance plan to complement your retirement plans; giving you financial security well into retirement.
Calculating term life insurance rates for seniors
Specific factors affect your life insurance rates as a senior, especially your age. The older you are, the higher your premiums will usually become. This is because you are at a higher risk of developing health problems, such as heart failure and stroke.
Additional factors that affect your life insurance rates:
- Your current health status.
- Smoking status.
- Your gender.
- Your medical history.
How retirees can reduce the cost of life insurance premiums
- Shop around: Gather a variety of quotes from different insurers. Be sure to compare "apples" with "apples".
- Improve your health: Quitting smoking can reduce your premium by more than half. With exercise and diet, you can reduce your chances of stroke, heart disease and cancer.
- Go for level premiums: Some insurers offer level premiums up to the age of 70. This premium structure does not increase as you get older like stepped premiums do and could be much more affordable in the long run.
- Look for discounts: Keep an eye out for special offers and discounts that could reduce your premium price. For example, multiple lives on one policy discount.
- Remove CPI increases: Inform your insurer that you don't want your policy to keep up with the rate of inflation.
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What to consider when doing senior life insurance review
With there being so many options when shopping around for a policy, having some criteria in mind might help you narrow down your top choices.
- Policy price and which premium structures they offer.
- How easy is it to apply and claim benefits?
- Check that your policy is guaranteed renewable. Meaning, regardless of your changing health, your insurer cannot downgrade or cancel your policy if you continue to pay your premiums.
- Can you speak to a human when wanting to make changes to your cover?
- The insurer you choose should have an excellent financial rating.
- Find out if you can customise your policy, for example, add a Trauma rider, so you are also covered for critical illnesses.
- The maximum age you can be to take out a policy and at what age it expires.
- Does the insurer provide a premium freeze option? Your premiums will stay the same price, although your insured amount will reduce each year.
Best life insurance for seniors over 50
People are marrying (or remarrying) and having children later in life. By the time you’re in your 50s, you are still very likely to have financial dependants, like your spouse and kids and would thus need a higher level of coverage.
How much is life insurance for a 50-year-old?
| Life Insurance Company | Policy | Gender | Average Monthly Premium |
|---|---|---|---|
 |
Priority Protection Vitality – Life Cover | Male | $94.83 |
| Female | $67.36 | ||
 |
Complete – Healthy Life Option – Life Cover | Male | $98.21 |
| Female | $74.14 | ||
 |
Elevate Insurance Solutions – Healthy Start – Life Insurance | Male | $105.88 |
| Female | $78.45 | ||
 |
Insurance with On Track – Life Cover | Male | $106.03 |
| Female | $77.50 | ||
 |
Accelerated Protection – Health Sense – Life Insurance | Male | $108.69 |
| Female | $79.60 |
Where to find life insurance if you’re over 65
If you’re over 65 years old, you've probably paid off most of your mortgage and don't have financially dependent children. However, statistically you have another 20 years of life to look forward to. You might want to purchase or upgrade your trauma and TPD cover while ensuring you have enough life cover to pay for your funeral expenses and leave money to your spouse.
How much is life insurance if you're over 65?
| Life Insurance Company | Policy | Gender | Average Monthly Premium |
|---|---|---|---|
|
Insurance with On Track – Life Cover | Male | $825.13 |
| Female | $490.06 | ||
 |
Protection – Life Care | Male | $845.40 |
| Female | $501.49 | ||
|
Priority Protection Vitality – Life Cover | Male | $780.37 |
| Female | $510.40 | ||
 |
Wealth Protection – Death Cover | Male | $877.25 |
| Female | $528.60 | ||
 |
Life Solutions – Life Cover | Male | $905.29 |
| Female | $534.55 |
Life insurance quotes for seniors over 70
The maximum entry age for most life insurers is up to 75, which means, a 70-year-old may still be able to find life cover. However, it is probably going to be very expensive. At this point in your life having just a standard funeral insurance policy and trauma cover might be enough.
How much is life insurance for a 70-year-old?
| Life Insurance Company | Policy | Gender | Average Monthly Premium |
|---|---|---|---|
|
Priority Protection Vitality – Life Cover | Male | $1,490.79 |
| Female | $932.72 | ||
|
Complete – Healthy Life Option – Life Cover | Male | $1,565.59 |
| Female | $1,020.63 | ||
|
Accelerated Protection – Health Sense – Life Insurance | Male | $1,599.95 |
| Female | $951.67 | ||
 |
OneCare – Life Cover | Male | $1,605.01 |
| Female | $1,034.17 | ||
|
Life Solutions – Life Cover | Male | $1,657.74 |
| Female | $877.89 |
Life insurance for seniors over 80
Very few insurers offer life insurance to people over the age of 80. Instead of life insurance, you might want to compare funeral insurance alternatives.
Frequently asked questions
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