Getting Insured If You're Over 50

Fifty is around the age when you are near retirement, but are still healthy enough to enjoy your life to the fullest.

It is also the time when many of our clients think about life insurance for the first time. Our clients in this age group consider some of the following aspects when deciding upon taking out life insurance:

  • Can your family manage financially once you are gone?
  • Do you want to leave your Children with a lump sum payment towards their future should you die?
  • Will your family be left with debt that will survive after your death?

Life Insurance for Seniors

    Life insurance is one of the best ways to protect and secure your loved ones future.

    Most insurance companies will offer coverage all the way up to age 99; however, in general you need to take out your policy before you turn 70. There are a number of companies that offer cover up to age 75 (cover is not offered after this age).

    As your age increases, so does the level of premiums you have to pay in line with the risk of death increasing with your age.

    It thus helps to use a comparison site like Rate Detective to make sure you get the best bang for your buck in terms of premiums paid vs. level of cover. Here are some of the things you need to consider:

    • The amount of premium you have to pay
    • The level coverage the insurer provides
    • The value of the benefit your beneficiaries will receive
    • The ages covered by the policy
    • Requirements such as medical tests

    Choosing Your Coverage

    After 50, the choice of coverage in many cases comes down to budget. Many of our clients go for the highest premium/level of cover their budget can afford.

    For $100,000 in cover for a 50-year-old male, premiums are less than a dollar a day, which is reasonable considering the increase risk associated with insuring people in their 50s.

    Your beneficiaries may also use the money to cover their other expenses, including their utilities and education.

    Built in Funeral Insurance

    Many of our clients are unaware that most life insurance plans come in with a built in funeral cover which comes off the total lump sum payable.

    The funeral proportion is generally paid within 24 hours of death upon presentation of a death certificate. The balance of a successful life insurance claim is then paid after the necessary paperwork and investigations are carried out.

    Funeral benefits are often set 20% of the value of the amount covered capped at $20,000. The terms and conditions vary between insurance policies so be sure to ask our advisors.

    Seeking Expert Advice

    You deserve to get the best insurance policy for yourself and your loved ones. It is thus important that you have a clear understanding of your policy before signing up for it. The consultants at Rate Detective can help you decide on the right policy for you based on your lifestyle and your financial situation. They will also give you a comparison of the top 9 insurers in Australia, which further helps you make the right choice.

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    What to find out more? Enquire now

    Published on September 9-th, 2012 in Insurance
    Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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    Important Information

    Not all providers in the market are included in the comparison.

    Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

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