Over 65 Life Cover

As you get older and into your senior years, you may start to think that you may no longer need life insurance or other types of insurance, especially if your home is paid off or your mortgage is reduced, your children are no longer financially dependent, you have no other debt to pay off and you are no longer working.

However you may still have other expenses which can be passed onto your children or family when you pass away and you could potentially suffer from a critical illness or a significant injury.

A life trauma, TPD or income protection insurance policy can help alleviate any financial concerns for you and your family.

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Important things to consider:

  • Medical Expenses: As you get older, your medical expenses could significantly increase, especially any that eventuate prior to ones death. This could leave a burden to your family to pay off.
  • As you age there is an increased risk of suffering from a fall or a critical illness, leading to expensive treatment costs.
  • Funeral Costs: A funeral can cost up to $30,000 depending on what you want and where you have it. As a funeral may be required to be paid for up front, this can leave your family with a financial burden at a difficult time in their lives.
  • Debt: For many people, debt will not necessarily be paid off once they reach the age of 65 or older, and they may still have a mortgage, credit card debt or other forms of debt.
  • Whether or not you want to leave some sort of financial benefit/gift to your children or grand children.

Premium Conversion Age:

Generally at the age of 65 or 70 (depending on your insurer) your policy will convert from Level Premiums to Stepped Premiums. This is to reflect the increased risk to the insurers as you age.

Life Insurance

Entry and Expiry Ages

The life insurance companies we work with generally offer a maximum entry age of up to 78, so you can generally still take out a new policy well into your 60’s. Generally a number of factors will determine your ability to get cover, not just your age. These include your health, occupation and past times.

Policies generally expire at the age of 99 or 100. In some cases, there is no expiry age at all. This means you can stay financially protected well into your senior years.

Important Life Insurance Benefits for over 65’s

Life Companies provide a number of built- in benefits with their policies, some of which are particularly important to those over the age of 60 or 65:

  • Funeral Advancement: Pays an advanced benefit to your beneficiaries upon your death to help them pay for the cost of your funeral and other associated expenses. This can alleviate some of the financial pressures that may affect your family at a difficult time.
  • Premium Freeze: If your cover is getting too expensive as you age, you can generally elect to freeze your premiums at a particular price so they do not increase further. While your cover will reduce to reflect the reduced premiums, cover is still maintained at a more affordable price.
  • Terminal Illness Benefit: Pays your full lump sum benefit if you are diagnosed with a terminal illness and have less than 12 months to live.
  • Remove Indexation: Increases your level of cover so your policy keeps up with inflation
  • Worldwide 24/7 Cover: In your retirement, you may have a strong desire to travel. You can be rest assured that our life insurance policies will generally cover you even if you were to pass away overseas.
  • Change of beneficiary: As long as you are the policy owner, you can elect to change your beneficiary at any time to reflect any change in your family situation. For e.g. you may want your benefit to go to your grand children or if you are divorced or your husband or wife has passed away, you may elect for your benefit to go to your children.

Income Protection

Entry and Expiry Ages

The policies we compare generally offer entry ages for Income Protection of 16 – 60 for Blue Collar Occupations and 16 – 64 for White Collar Occupations.

Expiry ages again differ depending in your occupation and you may find that by age 65, your income protection policy has expired. Generally Blue Collar occupations do expire at age 65 and White Collar at age 70, however this may also depend on your policy and you should consult the PDS or speak to an adviser.

Important Income Protection benefits for over 65’s:

  • Reoccurrence Benefit: If you suffer from a reoccurrence of your injury or illness within 12 months, of select life insurers will waive the waiting period and continue your benefit period. This benefit could be particularly beneficial to those over the age of 65 who may suffer falls or recurring illnesses.
  • Rehabilitation Benefit: As you get older and into your 60’s, you may find it more and more difficult to overcome even the smallest total disability. To help get you back on your feet, select insurers will reimburse you for any rehabilitation programs you participate in while totally or partially disabled.

Important Additional Options for Over 65’s

  • Bed Confinement: Injuries or illnesses you sustain in your senior years could leave you confined to a bed. This additional option allows you to start accruing 1/30th of your monthly benefit for each day during the waiting period you are confined to a bed.
  • Superannuation Contribution Option: Particularly useful if you are nearing retirement, this option allows for up to 80% of your income to be protected, with the additional 5% going into your superannuation.

Trauma Insurance

Entry and Expiry Ages

Trauma Policies generally offer entry ages of 16 – 64, regardless of your occupation. At the age of 65 or 70 the policy will generally convert to a Modified TPD policy, providing you with limited cover if you suffer from the loss of limbs or sight, loss of independent existence or cognitive loss.

You will need to consider whether or not it is worth keeping this type of policy going into your 60’s and 70’s.

This policy will then generally expire when a Modified TPD policy expires, which can be at the age of 100.

Important Trauma Benefits generally available for Over 65’s:

  • Death Benefit: Provides a small benefit of up to $10,000 if no other death benefit is payable upon your death.
  • Accommodation Benefit: If you plan on travelling in your retirement, you can be rest assured that if you suffer from a critical illness while overseas that you are not only covered but that select insurers will also pay for the accommodation expenses of a family member who has to trave to be with you.
  • Worldwide 24/7 cover

Total and Permanent Disablement Insurance

Entry and Expiry Ages

General entry ages for TPD Insurance are 16 – 64, however this may differ between insurers. Expiry age is generally up to age 70 so your policy may still be available to you after the age of 65.

Important TPD Benefits generally available to over 65’s

  • Conversion to Modified TPD: Unlike other forms of insurance, TPD does not expire at the age of 65 or 70 but rather it converts to modified TPD, allowing you to maintain some level of cover.
  • Worldwide 24/7 cover

Funeral Cover:

Funeral Insurance may be an option for those over 65 who want to maintain a small amount of cover to help pay for their funeral but cannot afford a full life insurance policy or cannot obtain one due to medical reasons.

Important Funeral Insurance Benefits generally available for over 65’s

  • Select insurers offer 3 times your benefit if death is caused by an accident after the first 12 months.
  • Worldwide 24/7 Cover
  • No medicals required to take out cover
  • Discounts for couples
  • Take out cover from as little as $5,000

Policy Reviews for over 65’s

We can provide seniors and those aged older than 65 with regular policy reviews to make sure your cover is still relevant to you. If you have no mortgage, have significantly reduced your mortgage, no longer have any financial dependents or you simply cannot afford your level of cover, you may still want to maintain a smaller level of cover.

If you are over the age of 65 and are looking for life insurance, contact us today on 1300 135 205.

Published: November 1, 2013
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Ask an Expert?

8 Comments

  • Laila Ghaly |

    Hi,
    I am non-smoker female aged 68 and already insured with MLC for more than fifteen years. I am looking for policy to cover me until age 99, my current policy is owned by my SMSF for 300K.

    • Russell SPECIALIST
      Russell |

      Hi Laila

      Having your life Insurance owned and funded by your SMSF is very common. Some of the providers will let you hold your life insurance in your SMSF till age 100 or 99. While others only allow you to hold the policy in your fund till age 75 / 80 then at which time if you want to retain the policy you need to have it transferred to your personal name. Currently to do this, you simply complete a cancel and reissue of the policy process (Generally there is no underwriting to do this however you would need to check with your insurer and this none requirement may change in the future). Therefore for absolute certainty you may want to consider a policy / provider that currently allows you to hold the policy in your SMSF to age 99/100. If you would like us to assist you finding such a insurer please request a smsf life insurance quote or call us on 1300 135 205.

  • michael earley |

    I am 68 and live in Indonesia. I will be buried in Indonesia. The funeral will basically cost nothing so I don’t expect a premium from the life insurance. However, to retire in Indonesia, I need life insurance! Can I get a life insurance for a minimal sum (say 100 dollars).

    • Russell SPECIALIST
      Russell |

      It is possible to find life insurance for Australian Expats living overseas with an Australian insurer, however each circumstance is considered on an individual basis. Generally the most important factors that influence obtaining your eligibility is: The DFAT (Travel warning) of the particular country you are currently (or planning on) residing in. Secondly it is the duration of your intended stay in. Thirdly do you intend to return to Australia? There are a few other factors therefore I suggest you contact our office +61 (02) 9929 7355 and we would gladly be happy to contact the relevant insurers we have access to, to see what options are available to you in your circumstance.

  • Mike |

    I am 71 years of age and have life insurance but I am looking for cover with lower premiums?

    • Brett Lenertz SPECIALIST
      Brett Lenertz |

      Thanks for contacting us Mike. Unfortunately, this can be a very common situation and it would be interesting first of all to look at the type of policy you have in terms of Features and Benefits and expiry age. At Life Insurance Direct we offer a comparison service and can therefore review your current life cover against 11 x Life Insurance Providers in the Australian Market potentially. The best way to do this is to speak to one of our Life Insurance Specialists on 1300 135 205 who can then provide you with factual information for you to make a decision that best suits your needs. Thanks

  • Viktor |

    I am currently 64 with a life insurance policy with Westpac [Death Benefit $147300, Living Plus Benefit $71000] that currently has a $422 monthly premium. I am now retired and non-smoker + non-drinker.

    Are there similar cover policies available without such a hefty premium?

    • Russell SPECIALIST
      Russell |

      Hi Viktor

      I have generated a quote for you to compare the premiums of a combined life and trauma insurance quote based on your age of 64 (Living in NSW which you can change). You will see based solely on the info you have provided above it looks like the premium you are paying provides fairly good value. Please note when you compare trauma cover that there can be a big difference in benefits between, basic, standard and plus polices.

      I hope this online resource helps, or if you would like us to provide a detailed no obligation review of your policy please call us on 1300135205.

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