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Senior life insurance

Senior life insurance is usually taken out between the ages of 50 and 75 and can offer a financial safety net to your family when you die.

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By

Richard Laycock

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NobleOak Life Insurance

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  • Comparatively fast claims processing time
  • 96.9% paid claims rate - better than the industry average of 92%
  • Higher than average cover available - up to $25 million
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Senior life insurance is an important consideration for those entering or already in their retirement years. That's especially true if you have any unpaid debts or home loans that will need to be paid after you pass away. By having the right cover in place, you can avoid passing on a financial burden to those you love.

Compare senior life insurance


Below we've compared a few core features from different Australian brands. You might want to take a look at the 'maximum entry age' as this is the age limit to applying for a new policy. We aren't able to show you the costs upfront because there are a number of factors that make up the price but you can check the features and if you see one you like, select Get Quote to work out the costs.

1 - 7 of 7
Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Claims Acceptance Rate Average Claim Time Sum Insured
NobleOak Life Insurance
Finder Award
NobleOak Life Insurance
$25,000,000
74
$25,000,000
96.90%
1.1 months
$24,483 million
Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate.

⭐ Current offer: Get one month free for a limited time - apply by 21 December 2023. Offer T&Cs on insurer website apply.
Get Quote
View details
TAL Accelerated Protection Life Insurance
Finder AwardBonus
TAL Accelerated Protection Life Insurance
No set limit
73
Not stated
Data not available
1 months
$249,285 million
Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older).

⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.
Get Quote
View details
Medibank Life Insurance
Medibank Life Insurance
$2,500,000
70
$2,500,000
Data not available
Data not available
Data not available
Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.
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View details
ahm Life Insurance
ahm Life Insurance
$1,500,000
55
$1,500,000
Data not available
Data not available
Data not available
Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests required.
Get Quote
View details
HCF Life Protect Insurance
HCF Life Protect Insurance
$1,500,000
65
$1,500,000
Data not available
Data not available
Data not available
Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process.

⭐ Current offer: Eligible HCF Members receive 10% premium discount and HCF Thank You rewards.
View details
RAC Life Insurance
Bonus
RAC Life Insurance
$25,000,000
74
$25,000,000
96.90%
1.1 months
$24,483 million
Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance.

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Real Family Life Cover
Bonus
Real Family Life Cover
$1,000,000
64
$1,000,000
88.90%
2.4 months
$53,238 million
Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout.

⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.
Get Quote
View details
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Why compare life insurance with Finder?

  • You pay the same price as buying directly from the life insurer.

  • We're not owned by an insurer (unlike other comparison sites).

  • We've done 100+ hours of policy research to help you understand what you're comparing.

What types of life insurance are available to seniors?

  • Life cover. Your nominated beneficiaries will receive a lump sum payment upon your death. This means that your loved ones will be financially secure when you are no longer around to provide for or take care of them.
    Maximum age of entry:Can range from 60 - 79
  • TPD cover. A lump sum benefit in the event of permanent or partial disablement and can be used for every day costs of living with a disability. Definition of disablement may vary between insurers so it is important to determine when a benefit will be paid. This cover can be purchased as standalone cover or bundled with the life cover policy.
    Maximum age of entry:Typically 59 (lthough some insurers will offer cover up to 64).

    Trauma cover. Provides a lump sum benefit if you suffer a medical condition such as cancer or a heart attack, and other serious conditions are more common with older age. This cover can be purchased as standalone cover or bundled with the life cover policy.

    Maximum age of entry:Typically 59.
  • Funeral insurance. While the benefits of a life insurance policy can be used for various purposes other than paying for the funeral expenses, the payout from funeral insurance is usually used for covering the costs associated with a funeral. Most policies will allow applicants to take out between $1,000 and $30,000 in cover.
    Maximum age of entry:Typically 79 (although some specialised providers may have a higher entry age).
  • Income protection. With an expiry age of 65, income cover will only be relevant for applicants below this age bracket. Income protection insurance provides a lump sum benefit of up to 75% of your income, with some policies offering up to 85% if the additional portion is contributed towards a superannuation fund.
    Maximum age of entry:Typically 60 (although some specialised providers will offer a higher entry age).

Am I eligible for life insurance?

The maximum age that seniors can apply for cover will really depend on the type of policy that you decide to go with. This may vary between providers but generally the following rules apply.

  • Life Insurance. Maximum entry age of between 60 to 79 with an expiry age of 100.
  • Income Protection. Maximum entry age of 60 with an expiry age of 65.
  • Trauma Insurance. Maximum entry age of 59 with an expiry age of 70.
  • TPD Insurance. Maximum entry age of 59 to 64 with an expiry age of 70.
  • Funeral Insurance. Maximum entry age of 79 years.

How much does seniors life insurance cost?

The cost of life insurance will get more costly as you enter your later years.

AgeMonthly premium for malesMonthly premium for females
50$115.04$89.51
60$402.33$260.34
65$760.53$457.43

'Monthly premium' based on the average of monthly policy premiums available through finder.com.au's quote engine. Premiums last checked March 2022 and are subject to change.

What factors influence the cost of a premium?

Life insurance premiums are calculated based on different risk factors a person is exposed to. An insurer will use the criteria below to determine the premium payable.

  • Age. With most types of insurance, the older you are, the higher your premiums will be. When you apply for cover in your senior years, you can expect the premiums you pay will be more expensive compared to people that apply for cover when they are young. This is due to age related health risks.
  • Gender. Men typically pay more in premiums than women because statistics have shown men have a lower life expectancy.
  • Smoking status. If you are a smoker you will usually pay two to three times more in premiums than a non smoker. To be assessed as a non smoker for insurance purposes you need to have ceased smoking for 12 months.
  • Medical history. A standard risk means you are in generally good health, and can qualify for a lower premium, even if you have minor health issues such as high blood pressure or high cholesterol. However, if you have a number of pre-existing health conditions, your premiums may be higher.
  • Family medical history. Your insurer may ask details of any medical conditions of your immediate family members. This may include heart disease, cancers, diabetes, mental disorders etc
  • Pastimes. Insurers may ask if you are involved in any hobbies or pastimes that may increase the likelihood of a claim.
  • Occupation. If you're still employed, the nature of your occupation may also lead to an increase in premiums if your insurer deems it to be higher risk.

Is it possible to find cheap life insurance as a senior?

Life insurance gets more expensive the older you get. However, some key steps to find affordable cover include:

  • Take the time to research what cover is actually suitable for your needs
  • Determine an adequate level of cover based on your existing financial obligations
  • Take steps to improve your health. Giving up smoking may lead to a reduction in premiums in the future
  • Consider funding cover through your superannuation. If you already have life cover in existing super funds, consider consolidating funds to avoid paying multiple fees
  • Look out for special offers and discounts offered by the insurer to cut your premium
  • Consider how your premium is structure and paid to reduce the overall amount
  • Receive assistance from an insurance consultant to help you find and compare different policy options

Is my pre-existing medical condition covered?

While some life insurers won't cover pre-existing medical conditions (especially for seniors) there are some exceptions. These are a few common ways insurers may assess your condition:

  • Provide you with cover but exclude the pre-existing medical condition
  • Provide you with cover with restrictions on the condition e.g. a partial benefit
  • Provide you with cover for an additional premium

'Fully underwritten' - Why it's important

Be on the lookout for a policy that offers 'fully underwritten' cover. This means you'll know upfront if you are covered or not and what the next steps are. Most policies you get through an adviser will be fully underwritten.

Learn more

What expenses can life insurance cover?

The benefit payment from a seniors life insurance benefit may be used for a number of remaining expenses. This may include:

  • Any outstanding mortgage and smaller personal debts e.g. credit card debt
  • Funeral costs
  • Financial planning benefit to be used by your partner
  • Legal fees
  • Taxes
  • On-going living costs of your family
  • Creation of instant estate
  • Deliver a legacy to pass on to family members or charity

What should you look for in a seniors life insurance policy?

Some key features to consider when looking at seniors life insurance plans include:

  • Premium freeze. Insured may select to pay the same premium that was paid the previous year by reducing the sum-insured before the policy anniversary date.
  • Benefit indexation. The sum insured on your policy will automatically increase each year by the consumer price index or 5% to ensure your cover keeps pace with inflation.
  • Guaranteed future insurability. Enables you to increase the level of cover on your policy without undertaking another round of medical underwriting
  • Interim cover. Will provide complimentary interim life cover while application is being assessed by insurer.
  • Funeral advancement benefit. Will make an advance payment (usually to a maximum of about $20,000) to your nominated beneficiary to assist with funeral expenses.
  • Financial planning benefit. Will provide an advance payment to cover any legal or estate planning costs.

Benefits and drawbacks of life insurance for seniors

Taking out life cover can seem like just another thing to organise, when all you want to do is relax and enjoy planning your retirement. However, there are some important benefits and limitations you should consider when looking at seniors life insurance:

Benefits of life insurance

  • Protect your savings. If you're still working you don't want to let an injury or illness force you into early retirement, which would mean you'd have to start living of your retirement savings earlier than expected. Having an adequate amount of cover would protect you in this eventuality.
  • Cover your final expenses. Your funeral has probably never been at the top of your savings goals. Seniors life insurance can pay out a benefit for funeral and burial expenses.
  • Avoid inheritance taxes. If you have significant assets and savings you will want to make sure the money doesn't get scooped up in taxes. You can structure the benefit payout so that it's received tax free by your beneficiaries and they won't have to worry about estate taxes.

Drawbacks of life insurance

  • The cost. If you are just now taking out life insurance as a senior citizen, your premiums will be quite high, which can be prohibitively expensive if you're on a fixed income.
  • Cover has an expiry date. Your policy could be due to expire soon depending on your age. Always check the expiry of your cover.
  • Pre-existing medical conditions excluded. Pre-existing conditions will typically be excluded on most policies, come with a higher premium or include heavy restrictions.

Life insurance at the later stages in life

Over 50

Considered the prime of your life, with a lot of professional and life experience under your belt than you had before. A lot of people start looking towards retirement in their 50s, but it's important to remember that there's a good chance you're still only halfway through a long and full life. This might be the right time to really focus on powering towards your savings and retirement goals, as the more you can put away now, the more you'll have later. The right life insurance can help keep you on target even if things go wrong.

Over 65

When you're over 65 you're officially a senior. You're older, wiser and probably feeling the physical aches and pains that come with age by now. Unfortunately, these growing health issues will likely start taking up increasing amounts of your time, attention and money. It's time to start considering how to actively use superannuation and life insurance as you move away from a constant income and towards savings.

Over 70

By now you're either feeling the weight of years and your health is an increasing concern. You may want to consider estate planning in more detail, and how you plan on passing on your belongings with minimal tax impacts. Many life and related insurance policies will be expiring when you're in your 70s. If you have been depending on benefits from these, or are expecting to rely on claims in the future then it's wise to assess your existing cover and options.

Should you get funeral insurance?

Funeral insurance can be a good choice if you're unable to apply for life insurance. Some key tips to follow when applying for funeral insurance include:

  • Obtain quotes from multiple providers. Don't get ripped off. Compare a number of quotes to ensure you're getting the best deal.
  • Choose a policy backed by a reliable name. Make sure you do your research into the company's before you buy your policy. Look for details such as the company's history, awards, customer service and claims process.
  • Compare features and benefits of the policy. It's essential to find out what events are covered. Read the product disclosure statement (PDS) to help you decide whether the life insurance plan is suitable for you or not.
  • Look for premium guarantees. Premium guarantees ensure you don't get ripped off by making sure your premiums are capped when they reach the total sum you have insured.
  • Premium payment options. Find out whether your policy includes flexible repayment options.

Is funeral insurance a better choice for seniors?

In some cases yes. With guaranteed acceptance usually offered to those under the age of 80, funeral insurance may be the only option for those that have been unsuccessful in taking out life cover in the past and don't require a significant amount of cover. Most funeral insurance policies allow applicants to take out between $1,000 and $30,000 in cover.

Funeral insurance benefits

  • Simplified claims process. Benefit is paid quickly
  • Guaranteed acceptance usually provided to age 80
  • Increased benefits of up to three times the normal cover amount may be offered for death by accident after first 12 months

Funeral insurance drawbacks

  • Medical examination is usually required
  • Premiums increase with age over time
  • If you live for 5-10 years longer than expected, you may end up paying more cost of the funeral in premiums
  • With most policies only covering accidental death in first two years, death from terminal illness may not be covered
As mentioned above one of the best things about funeral insurance for the older buyers is that you won't be refused cover even up to age 80, no matter your health, lifestyle or gender and you can take out joint cover with your spouse. Some insurers offer seniors two choices, an age based premium option or a fixed premium option:
  • The age based option is cost effective earlier on but as you age the premium cost automatically increases. The cost can become quite substantial as you get older, which find difficult to manage. Age based premiums are automatically increased by 5% each year to keep pace with the rise in funeral expenses.
  • The fixed premium option is fixed at the time of taking out the cover and it will always remain the same. It's dearer than the age based option initially but becomes cheaper in comparison as the age based option increases every year.

Learn more about funeral insurance plans

Tips to help you avoid life insurance scams

  • Make sure you use a reputable provider. A well known, regulated insurance provider cannot take the risk of deceiving its valuable customers, so you will have far greater security when you choose a company that is well known, reputable and regulated.
  • Do your research. Take the time to research brands you are considering, which means looking at customer reviews, finding out more about the provider if you are not familiar with it, and even comparing different plans and providers so you can boost your chances of getting a good deal.
  • Ask questions. If you have any questions or are uncertain about anything, make a list of questions to ask the provider, from queries that you have about the plan itself to questions about the provider, its background, its policies, and anything else you want clarification or peace of mind about.
  • Don't rush into anything. Many seniors make the mistake of rushing into a decision or feeling pressured into making a decision when it comes to life insurance cover. However, this can increase the chances of you making a costly mistake. Take some time to think about your choice before you make any commitment and if necessary seek advice from professionals.

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