Life Insurance at Different Life Stages

If you’ve recently experienced a significant life event, for example buying your first home or getting married and starting a family; these changes in responsibilities can mean that the type of insurance best suited to cover those initial years might no longer be the best option for your current stage of life..

Published May 11, 2023

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Generally, it’s a good idea to ensure that your current life insurance policy provides you with sufficient coverage for your current phase of life and the requirements surrounding that phase.. When you aren’t reviewing your life insurance systematically throughout your life, the ones you love most may be effectively protected should something happen to you. It’s essential to do a yearly review of the type and amount of coverage you have to ensure your cover matches your requirements.

How does your insurance needs change at different stages in life?

It’s crucial to update your insurance coverage to align with your evolving needs. Adequate coverage should safeguard your income and provide financial stability for your loved ones to pursue their aspirations, even in the event of your untimely demise or incapacity due to sickness or injury. Don’t neglect the importance of insurance in securing a bright and worry-free future.

In Australia, there are different personal insurance types suited to different requirements, including:

Whenever life changes, review your life insurance needs and make sure the policy type still meets your requirements. Below are the different life stages which generally require you to re-evaluate your insurance coverage.

Buying a house

If you have a mortgage, you might require additional life insurance to cover your home loan, so the If you have a mortgage, you might require additional life insurance to cover your home loan. Generally, this will help to prevent your financial burdens from falling to your loved ones. You might also want to look at Trauma insurance because it may help you pay for medical treatments and assist you in replacing your income while you focus on recovery.

Starting a family

When becoming a parent, you’ll want to make sure you have enough cover in place to support your partner and account for the future costs of raising your children, including school and college. Life insurance for families is especially important if you are the primary or sole breadwinner. Policy riders, like TPD and critical illness cover, might also be beneficial.

Select insurance companies may also offer you child cover as an optional benefit to your life, TPD or trauma insurance policy. Child cover generally pays a benefit when your child dies or is diagnosed with a terminal illness or a critical illness, for example, heart conditions.

With the added responsibility of a family, you might also want to also protect your income with a TPD and/or income protection policy.

Getting Older

Seniors life insurance for over 50s might be necessary if you still have outstanding debts, especially a mortgage or a car. Because people have children later in life, you could even require life insurance to support yours, or perhaps your elderly parents financially.

When you’re over the age of 65 and retired, you typically don’t need income protection or TPD coverage, because you won’t be earning an income. However, trauma insurance at this stage of your life is generally essential, because the older you get, the higher your risk of developing a critical illness.

You might want to maintain a small amount of life insurance if you don’t have funeral cover or would like to leave a legacy, where the money is paid to your adult children or a chosen charity.

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

Switching jobs

When changing your career, it’s important to review your new employer’s superannuation and the insurance benefits provided. You might need to increase the coverage or buy an additional policy that gives you access to more benefits, for example, a retail policy held outside of superannuation.

Starting a business

If you’ve taken the plunge into entrepreneurship, keyman insurance could be beneficial. A key-person insurance policy protects your business by paying a lump sum benefit if an essential person to the business passes away or gets diagnosed with a terminal illness.

Getting divorced

If you’ve separated or divorced, you should also review your life insurance, as you might want to decrease the cover amount. However, if you have children, and you must pay child support, you need more insurance.

Be sure to update the beneficiaries listed on your policy documents if you don’t want your ex-partner to receive the lump sum benefit when you die.

Choosing the right type of life insurance and making sure you have enough

By filling in a quote form and using our robust comparison tool, you can compare term life insurance, TPD, trauma cover and income protection, online. Life Insurance Direct clients receive a free yearly review of their policies to help them make sure their cover still meets their requirements.

If you’re unsure of your needs at this stage of your life, speak with our insurance specialists. They’ll help you find the policy type and amount that meets your requirements.

Frequently Asked Questions and Answers

  • Why is life insurance important at every stage of life?

    As you pay off your liabilities, the financial burden for your family should be reduced. Typically, you also won’t need to purchase larger sums insured for your life cover as your responsibilities reduce over time. You may also want to continue reviewing your life cover as insurer’s periodically offer new members several discounts that generally are not available to current members.
  • Does life insurance change as you get older?

    Yes, typically premiums for life insurance policies get more expensive as you age. Generally, premiums are most affordable when you’re in your early twenties and increase as you age. However, with insurer deals you may be able to find affordable life insurance even if you are in a different stage of life.
  • At what age is life insurance no longer needed?

    Generally, it’s a good idea to have some sort of life cover in place throughout your life. However, many seniors may find that they do not need as much insurance as they did when they were younger and had more financial responsibilities. Typically, you want to make sure that you have enough life insurance in place to cover your liabilities should you no longer be around.

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