Life insurance for seniors

There are two types of Personal Insurance available in Australia that may be most suitable for seniors. These include:

• Funeral insurance – this type of cover is quite common in Australia, having been advertised on television by companies like Real Insurance and Insurance Line. Funeral insurance does not usually ask any medical questions, so it therefore may be suitable for seniors who might have a number of health issues. Generally speaking, the acceptance age for funeral insurance is also slightly higher than that of term life insurance (up to around age 79), giving seniors more options later in life.

Just like Term Life Insurance, funeral insurance pays a lump sum payment to you after twelve months of having the policy if you die. Some life insurance companies even offer a double benefit payment should your death be caused by an accident at any time you hold the policy.

• Term life insurance – a standard term life insurance policy is often cheaper than funeral insurance as more medical questions are asked. The cost of term life insurance for seniors depends on several factors. Some examples of what life insurance companies look at include:
  • Your Age: Generally speaking the older you are, the higher your premium may be.
  • Your Sex: With all other things being the same, senior men pay more for life insurance than women because they have a lower life expectancy. This is purely from actuarial data.
  • Your Smoking Status: Smokers can pay as much as two to three times more for life insurance than non-smokers. Most life insurance companies will not consider you a non-smoker until you've been smoke free for at least 12 months.
  • Your Health: Depending on the insurance company, if you are in good health or if you have minor health issues such as high blood pressure or high cholesterol, then you will more than likely qualify for a standard term life insurance policy.

If you have a history of major health problems such as heart attack, stroke, or cancer then your premium may be ‘rated up’. Every life insurance company will always look at each policy on a case-by-case basis. If you are unsure about what to do, talk to an xLife financial adviser. We will be able to guide you in the right direction and can often find a policy which will suit your needs.

If you are thinking about buying term life insurance for seniors, then you may like to get a competitive term life insurance quote from xLife. We can help find the right policy for you, even in difficult circumstances.

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year’s life insurance premium.

February 2010