What to Look For In Life Insurance for Seniors

Find Affordable Seniors Life Insurance that Won't Leave you Over/Under Protected

With the number of insurance providers all over Australia, it is not difficult to find a life insurance policy. However, there are some individuals who may have difficulty in obtaining a policy because of certain situations that call for a special type of insurance policy or they simply do not know how to find one.

The latter reason is true if you are one of those first-time insurance buyers. You understand that there is a need for cover but do not know how to spot a good deal. The other group of people who may also have difficulty finding coverage are those who have high-risk occupations, pre-existing medical conditions, or seniors.

If you are a senior citizen and you think that it is difficult to get cover because of your age, do not be deterred as it is still possible to find life cover to suit your needs and situation. You can obtain expert advice from an insurance adviser and help you find the right policy. Just remember, even with the help of an insurance expert, you still need to do a little legwork so you can understand a policy better and ask any questions concerning the policy you are getting. Every bit of information you get is crucial since a single feature will make a huge impact on your life insurance policy as a whole.

Special Needs of Seniors

It is a fact that our needs change with each phase of our lives. Your need as a single, young professional years ago are very different than your needs now as a senior. When you were much younger, your needs were focused on starting a family, raising your kids, and providing for them. As a senior, much of these financial obligations are not there anymore as your kids start their own families. Now you are left to focus more on enjoying whatever time you have left in this planet.

If you are still healthy, you might want to travel more with your spouse. Aside from this, thoughts regarding your funeral or nursing care needs might come to mind as well. These are the things you need to consider when looking for a life insurance cover. Below are other factors that you might want to include on your list as reasons to consider life insurance as a senior:

  • Extra medical care - This is very important especially if you have a pre-existing medical condition. You should face the fact that as the body grows older your health also deteriorates despite all the best intentions. This situation might even grow worse if your lifestyle is not as healthy when you were younger.
  • Home modifications - As you grow older, your mobility and flexibility decreases which might compromise your safety. In order to ensure safety in your house, you will need to modify or add some parts to help you move across the house. These modifications include ramps or ledges you can hold on to.
  • In-house assistance - Some of the most common ailments in seniors are arthritis and rheumatism making it difficult for you to do some chores that were otherwise easier when you were much younger. Due to this difficulty, you might need some household help to assist you in doing some chores like cleaning the house or doing the laundry. This, including the other factors mentioned above, requires extra finances to pay for such services. Thus, you need to consider this when looking for life insurance cover.
  • Nursing home care - Whether it is for medical or personal reasons why you will have yourself admitted in a nursing home, you need the extra finances to pay for such services. Surely, you do not want to burden your kids when they are just starting to build their own families.

What are the Advantages of Having Seniors Life Insurance?

With seniors life insurance, you have the invaluable peace of mind knowing that those you leave behind will not be bogged down with financial matters when you pass away. But, there are also other advantages that do not only your family but you as the policyholder as well, such as:

  • Pays for your final expenses: Even if you have children who are more than willing to pay for any of your medical expenses should you get sick, you may have some other financial obligations that you do not want to burden them with, such as outstanding debts and mortgages. With seniors life insurance, you are relieving them some additional burden aside from the emotional stress your loved ones may have at the time of your death. Not only does the benefit of your insurance policy pays for your medical expenses and debts, but it can also be used to pay for your funeral.
  • Protects your savings: As a senior, you are aware of the fact that as you age, your health also deteriorates; thus, the possibility of being hospitalised suddenly because of an illness or injury is high. With seniors life insurance in place, your savings remain untouched and can be used for more enjoyable purposes.
  • Tax-free inheritance for your children: It is normal for parents to be able to leave something for their kids - something that will financially help and serve as a reminder. However, there are often tax implication that go along with inherited assets and properties. The proceeds from senior life insurance claim, however, may serve as tax-free alternative for those who don't want to burden their children with inheritance taxes.

Insurance Solutions for Seniors

After taking into consideration some factors that might affect your choice of policy, you might also be wondering what type of insurance policies are available for you. The answer lies in the purpose of why you want an insurance cover. Basically, though, some insurance solutions that are especially designed for seniors are funeral insurance, Term Life Insurance, TPD Insurance, Trauma Insurance, and Living Expenses insurance.

  • Funeral Insurance - Although funeral insurance may seem like a gloomy idea, you cannot deny the fact that as you grow older death becomes a constant part of your thoughts. Though death is inevitable, you can make preparations for it in order not to become a burden to your loved ones. Funeral insurance is the easiest to understand and, perhaps, the cheapest among insurance products since its purpose is to pay for your funeral expenses. Unlike other insurance products which you have the freedom to use for other purposes, funeral insurance benefits are exclusively meant for anything related to your funeral.
  • Term Life Insurance - Although there are many types of life insurance policies available in the market, term life insurance is the most popular because it is easy to understand and very flexible. As a senior, you might not really need a 30-year insurance cover. Term life insurance gives you the freedom to choose the length of cover you deem necessary for your needs. You can opt for as short as 5 years or a much longer term of 10 to 15 years. Furthermore, you do not need to worry about the inflation since one feature you can add in your life insurance policy allows your benefits to rise with the inflation.
  • TPD Insurance - This type of insurance solution gives you cover against total and permanent disablement. Although the basic TPD cover is only until 65, there are some features where the cover can extend up to 99 years old. The basis of eligibility when making a claim will depend on the type of disablement you have sustained as a result of an injury or illness.
  • Trauma Insurance - Trauma insurance is also called Critical Illness Insurance. One distinguishing feature of this insurance product is that you can lodge a claim upon diagnosis of a certain critical illness. This means that you don't have to wait before you die to make a claim and enjoy your benefits. You must be careful, though, when getting Trauma insurance cover since the definition of critical illness differs between providers. The most common illnesses covered in this type of insurance include cancer, stroke and heart diseases.

When looking for life insurance cover, you have to consider that your age, health, gender, and lifestyle play a major role in the cost of your insurance policy.

  • Age - The older you get, the more expensive your insurance premiums become.
  • Health - Any pre-existing medical condition you might have means a higher premium. Depending on the seriousness of your condition, there is also a possibility that your application might get denied. Ask the help of an insurance adviser because there are some insurance providers who specialise in such cases.
  • Gender - Males have generally a higher insurance premium than their female counterparts since they are more exposed to risks through the occupation and activities they engage in and have a lower life expectancy.
  • Lifestyle - If you happen to be a smoker, expect a much higher insurance premium.

Getting life insurance cover as a senior is not a difficult feat nowadays. Insurance providers have designed insurance solutions made especially for seniors and the unique needs they have. You can get an instant quote online to get an idea how much insurance you need at your age and according to the lifestyle you have.

How to Get the Best Senior Life Insurance Deal

  • Decide the purpose of your life insurance: Will your life insurance cover only your expenses or as an inheritance for your loved ones? Once you know how your policy is going to be used, you can estimate as to how much cover you should have.
  • Shop and compare policies: Collect different quotes and then make the comparison. Look at the features of the policy to know if the cost is concurrent to the benefits it can give you.
  • Negotiate for a discount: You can either get a discount on the price of your policy or additional features on your policy. Any which way is possible. The secret is to ask.

After you have decided, there is just one thing left to do before signing on your insurance contract and it is to read the Product Disclosure Statement (PDS). It will give you further information about the policy you will get including the exclusions and inclusions of the policy. Being aware of what your policy can and cannot do prevents you from having false expectation that might bring some problems in the future.

Compare Life Insurance Quotes with an adviser

Please enter your full name
Please enter a valid email address
It's important to give us a valid phone number
Date of Birth
Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
By submitting this form, you agree to the finder.com.au privacy policy
Get quotes

Compare Life insurance quotes from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs.
Join Qantas Life Protect and earn up to 100,000 Qantas points. T&CS apply.
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™. Take out cover today and you could get a bonus $100 Gift Card.
Flexible cover options to suit your budget. New eligible customers can receive 25,000 Velocity Points. Ends 31 Aug 2018. Min monthly premium and T&Cs apply.
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
Get flexible life insurance up to the sum of $2,000,000.
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.

Compare up to 4 providers

William Eve

Will is a personal finance writer for finder.com.au specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site