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While it's common for Australians in their 60s to either be retired or approaching retirement, there still may be value in investing in a life insurance policy. Some typical costs you may wish to cover at this age include:
Make sure you check the maximum entry age before applying. This is the age limit to apply for a policy. Be sure to inform your provider if you have any pre-existing medical conditions.
An adviser can help you find cover from trusted life insurance brands.
How cover works when you are over 60
The cost of cover
Why should I consider life insurance after my 60th birthday?Life insurance, at this point, can benefit not only you, but your family most especially. Just think what great a burden can be taken from their shoulders when you have taken care of all the payment for the final expenses. In doing so, you will be able to help them adjust smoothly.
Moreover, when you have life insurance at 60, you can also use this to leave something behind not only for your kids, but for your grandchildren as well.
Life insurance may seem like excessive security. If you've paid off your mortgage and are freed of your children, now able to live independently, the key financial burdens of life may finally feel like they have been lifted. However, there are a several reasons why life insurance still makes financial sense:
Before you start shopping for cover, however, make sure you’re aware that life insurance does have its drawbacks. For example, all pre-existing conditions may be excluded from cover, and policy expiry ages may mean that some types of cover are not available to you.
However, the most significant drawback of life insurance is the cost once you reach 60. The simple fact is that the older you are, the more life insurance costs, and taking out cover as a pensioner is never going to be cheap.
However, the benefits of life insurance mean that it is still well worth considering, so speak to a trusted insurance adviser who can help you find the best value for money.
The end of work doesn't mean the end of life, and life insurance is about more than just income protection. It's about providing some level of comfort to those who've made up your world after you leave it.
Seniors may no longer face the same financial obligations of yesteryears, but you probably still wish to secure yourself as you transition to your golden years
Features to look for at this ageHow can you choose a good life insurance policy that provides the protection you need at a reasonable price? There are a few key features you should look out for:
One of the common reasons people over 60 avoid taking out life insurance is because they think they’re too old to be covered. However, you might be surprised to learn that you may be eligible for life insurance cover well into your senior years.
Although maximum entry and expiry ages vary between insurers, the following age limits generally apply to life insurance:
| Brands | Life Cover Maximum Entry Age | Policy Expiry Age |
|---|---|---|
75 | 100 | |
74 | 99 | |
75 | 100 | |
69 | 99 | |
64 | 99 | |
65 | 80 | |
65 | 99 | |
73 | 99 | |
70 | ||
75 | 75 | |
69 | 99 | |
75 | 100 | |
70 | 99 | |
69 | 85 |
There are many different aspects to life policies that can make them seemingly expensive if you don’t shop around and compare the best rates. To understand why this might be the case, there are a number of things related to the status of your life and health largely determine the premiums that you need to know, such as:
We analysed 10 life insurance policies to get a rough idea of how much it costs per month for a 60 year old and how it increased if you get it at the age of 70.
| Brand | 60 years old | Increases by | 70 years old |
|---|---|---|---|
| Average | $287.20 | $764.98 | $1,046.15 |
| Clearview LifeSolutions | $297.53 | ||
| TAL Accelerated Protection | $284.92 | $765.11 | $1,050.03 |
| MLC Insurance | $316.00 | ||
| OnePath OneCare | $291.20 | $743.80 | $1,035.00 |
| Zurich Wealth Protection | $251.68 | $733.31 | $984.99 |
| AIA Priority Protection | $296.87 | $817.70 | $1,114.57 |
| AMP Elevate (Members only) | $301.82 | ||
| BT Protection Plans | $257.56 |
| Brand | 60 years old | Increases by | 70 years old |
|---|---|---|---|
| Average | $186.11 | $467.75 | $649.07 |
| Clearview LifeSolutions | $190.79 | ||
| TAL Accelerated Protection | $182.08 | $431.55 | $613.63 |
| MLC Insurance | $198.87 | ||
| OnePath OneCare | $190.71 | $477.32 | $668.03 |
| Zurich Wealth Protection | $165.69 | $448.66 | $614.35 |
| AIA Priority Protection | $187.52 | $512.73 | $700.25 |
| AMP Elevate | $205.99 | ||
| BT Protection Plans | $167.24 |
Quotes are taken from finder's life insurance engine on July 2020 with a life cover of $500,000 for a non-smoker. Prices only a rough guide and are subject to change.
You’ll usually pay a ‘premium’ either fortnightly, monthly or annually to fund your cover. There are...
Premium payments are calculated on an average over the life of your policy, making the payments stable and relatively unaffected. Stepped premiums are typically higher at the beginning of a policy, but lower and even out over the long term, typically saving you money over the life of the policy. Level premiums are predictable and easy to budget for, giving you cover with no surprises.
Stepped premiums are payments that start out low, based on your age, and when re-evaluated annually increases the premium as you age. This is a good option for younger people because the payments remain low at the onset and increase as you age. The stepped premiums are better for a short-term life insurance policy because near the end of the policy the premiums can get quite expensive.
Both level and stepped premiums are good options, but of course it depends on each individual situation. It is important to carefully assess your current financial situation and choose the most appropriate premium style that you afford, in the short or long run. Should you be wishing to have cover over the long term, level premiums are the more affordable option.
Some other important things to keep in mind when looking for high levels of life insurance include:
All life insurance companies require applicants to declare any pre-existing medical conditions prior to taking out cover. Failure to do so may lead to the policy being rejected at claim time.
With the likelihood of conditions increasing in later years, most insurers will require applicants over 60 to submit a medical exam regardless of whether or not they declare they have a pre-existing condition. This is to account for the additional risk that they present to the insurer. If the applicant has a pre-existing condition, the insurer will generally either:
If you have struggled in the past to find life insurance due to a pre-existing condition, you may wish to consider cover options that require very little or no medical underwriting whatsoever. These include:
There are two options when choosing life insurance cover: purchase direct life insurance straight from an insurer, or choose tailored life insurance through an adviser.
Direct life insurance is designed to make it quick and easy to take out cover, with fast application online or over the phone and minimal medical underwriting. However, as a result of this streamlined process, direct life insurance does have some shortcomings.
Direct life cover is sold on a “one size fits all” basis rather than tailored to suit the needs of each individual applicant. It also has much stricter limits on the cover entry age, so if you’re over 60, it may not be possible to find cover with some insurers.
If you’re looking for a tailored package, your best bet is to speak to an adviser. An experienced adviser will take the time to assess your financial situation and personal circumstances to help you determine the type of cover you need and how much. They will then be able to help you sort through the myriad policy options available and choose one that matches your needs and budget.
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