You may have noticed that there are only a handful of life insurance providers in the table below. This is because some insurers won't take applications for people aged over 65. To make it easier for you, our table only shows the Finder partners that do.
The maximum entry age on life insurance policies in Australia can vary between providers but generally, people can take out cover if they are between the ages of 18 and 75.A policy expiry age can also impact the length of your life insurance policy. This is the age at which your policy will automatically terminate. It is usually between 99 and 130 years of age. For example, if you're currently 70, you could purchase a policy with a maximum entry age of 70 or above and an expiry age of 100 and be covered until you turn 100 years old.
| 75 | 100 |
| 70 | 99 |
| 75 | 100 |
| 69 | 99 |
| 75 | 99 |
| 65 | 75 |
| 73 | 130 |
| 70 | 100 |
| 75 | 130 |
| 70 | 99 |
| 69 | 99 |
| 69 | 99 |
The figures in this table were correct at the time of publishing. Make sure you check the Product Disclosure Statement (PDS) to see you if you're eligible to apply.
Term life insurance for people over 65
Term life insurance, also known as 'death cover', is the standard type of life insurance you can get in Australia. It covers you for a period of time (for example - until the age of 99) and will pay a lump sum benefit to your loved ones if you die during this time.
- Terminal illness benefit. Receive 100% of your life cover sum insured if a certified medical practitioner diagnoses you with a terminal illness.
- Benefit indexation. Ensures your sum insured (and premiums) keeps pace with inflation over the life of the loan.
- Premium freeze. Freeze premium payments for a specified period. This feature is generally only available with stepped premiums.
- Funeral expenses benefit. An advanced payment of a portion of the sum-insured is paid to nominated beneficiaries to help them cover immediate expenses following death.
- Financial planning reimbursement. Beneficiaries are reimbursed for the cost of obtaining a financial plan from a certified financial adviser.
Trauma insurance for people over 65
People over age 65 may wish to consider adding Trauma Insurance to their life insurance plan, either as a linked benefit on their policy or as a standalone policy.
Trauma cover, also known as 'critical illness cover', can offer policyholder protection for up to 50 different medical conditions including heart attacks and strokes.
Some of the key features of trauma insurance include:
- Buy-Back option. If the trauma cover is linked to a life insurance plan and a benefit is paid for a trauma event, the life insurance sum insured is reduced by what was paid for the trauma benefit. The buy-back feature allows the policy owner to repurchase the sum-insured 12 months after the claim was paid.
- Chronic Diagnosis Advancement Benefit. Some policies will provide policy owners with an advancement of a portion of the sum insured following the diagnosis of a specified condition.
- Conversion to loss of independence. As most trauma policies will only provide cover to age 70, some policies will allow policy owners to convert the benefit to a "loss of independence" benefit. This benefit can generally remain in force until the age of 100.
- Financial planning benefit. Some insurers will reimburse financial planning costs so you can plan how to use your lump sum payout.
- Death benefit. A lump-sum payout may be awarded if there is a death within 14 days of suffering from a critical condition.
Total and Permanent Disability cover for people over 65
Total and Permanent Disability (TPD) cover pays a lump sum benefit if you can't work again due to a permanent illness or injury. It's important to note that most insurance policies have a maximum entry age of 65 but there are a few that have their cut off point in the 70s.
Some of the main benefits of TPD include:
- Partial disability benefit. You can be paid a lump-sum amount in the event of partial disablement (e.g. loss of one arm or sight in one eye).
- Buy-back option. If your TPD cover is bundled with your life insurance, when a TPD benefit is paid, the amount gets deducted from your life insurance sum insured. A buy-back option lets you reinstate that amount.
- Death benefit. If your TPD cover is a standalone policy a benefit amount can be paid in the event of your death.
- Benefit indexation. Your sum insured will increase annually in line with the Consumer Price Index to keep up with inflation.
In addition to the benefits and features of the policy being applied for, there are some key things to look out for when comparing quotes on life insurance policies.
- Sum insured. What is the maximum amount of cover that can be taken out on the policy?
- Cost. Are you getting good value for money? Does the policy have expensive extras that you don't really need?
- Waiting period. How long is the period between the claim being made and the benefit being provided to the policy beneficiaries?
- Maximum entry age. What is the cut-off age for applying for cover?
- Cooling off period. What is the duration of time after the policy being taken out that cover can be cancelled and premiums refunded?
- Claims process. What is the insurance provider's claims process? This should be stated on the insurers website.
- Cover renewal. To what age can cover be renewed?
These are just a few components of the policy to review when comparing quotes. An insurance consultant can help you compare different policies and explain any exclusions that may apply.
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