Life Insurance For Seniors in Australia

As people get older they begin to think more about taking out a life insurance policy for various reasons. Commonly, so loved ones don’t feel the burden of final arrangements or outstanding debt. This is especially true when people hit their 50s, 60s and 70s and consider senior life insurance options.

Who offers the most competitive Life Insurance for Seniors?

At Rate Detective we compare 10 life insurance companies to try to find you the most competitive rate. If you are a senior considering life insurance, then give us a call on 1300 793 143 (or fill out Life Insurance Enquiry form on the right side) and speak to one of our friendly advisers, who will help you find the right policy for your needs at the most competitive price.

There are two types of personal insurance in Australia that can benefit seniors, funeral insurance and life insurance. Typically life insurance is a cheaper option, but available only up until age 74. Funeral Insurance is available after age 74 but amounts of cover are capped at a lower level and generally funeral cover is more expensive.

1) Funeral Insurance

In Australia, most funeral plans will allow you to take a lump sum cover of up to $30,000 that will pay out in the advent of death. Of course the family does not have to use all of the payout on final arrangements, the payout can be used for any purpose. Typically, insurance companies will accept any applicant irrespective of their current medical condition. The catch is the policy will not payout in the case of death by illness in the first 12 months after taking out the policy. Death by any means is usually covered after 12 months.

Funeral insurance is generally more expensive than life insurance, but if you have a poor medical history might be a more cost effective option.

2) Term Life Insurance

A standard term life insurance policy is usually cheaper than funeral insurance as insurance companies taken your medical history into account before providing cover.

How much you pay for term life insurance depends on several factors:

  • Your Age - The older you are the higher your premiums.
  • Sex - Senior men have to pay more for life insurance than women because they have a lower life expectancy.
  • Smoking - If you are a smoker then you may have to pay two times more for life insurance than non smokers. Most life insurance companies will only consider you as a non smoker if you have not smoked for 12 months or more.
  • Health - If you are in good health or if you have a few minor health issues such as high blood pressure or high cholesterol, then you will most likely be accepted for a standard life insurance policy.

Unfortunately if you have some health issues such as heart attack, stroke, or cancer then your premiums may be loaded. Every life insurance company will view each policy individually. At Rate Detective, we specialise in finding the most competitive cover for those with a medical condition.

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Published on March 3-th, 2010 in Life 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.