Life Insurance for over 50’s and 65’s

As we get older, what we focus on and what’s important to us changes. Our attention is drawn to topics and conversations that we might not have previously considered. Our primary financial objective shifts from earning as much as you can to preserving as much as you can. With these changing objectives comes a unique need for specialised expertise with regards to seniors insurance.

When it comes to protecting the financial future of your loved ones, ensuring your policies are being looked after by the right financial adviser is of the utmost importance. Knowing that your family will have an expert advocate in their corner and will not have to deal with a call centre in the event of a claim is just one of the many advantages to dealing with Curo Financial Services.

Whether you are simply looking to provide your loved ones with funds to cover the cost of a funeral or whether you are looking to provide loved ones with financial support while you are not around to do so, it is crucial to seek out insurance advice. Whilst the process might seem simple on the surface, life insurance can be highly complex, particularly at claim time where the assistance of a financial adviser can be invaluable.

As more and more Australians are working into their late 60’s and even 70’s, Income Protection insurance for over 65’s is becoming increasingly important in today’s society. With almost all of the major life insurers now offering Income Protection cover to age 70, if you plan on continuing to work until reaching this age then Income Protection insurance is definitely worthwhile for you. As we get older our susceptibility to illness and injury increases and the chances are that if unfortunately you suffer from a serious illness or injury you will need to take time off work. The monthly income benefit provided through Income Protection Insurance can cover your everyday cost of living. You can still apply for Income Protection Insurance up to the age of 64. Once again, should you have to make a claim before age 70, the monthly income you receive from your insurance policy can increase the time before needing to draw on your retirement savings.

The advent of daytime television advertising has brought about a considerable amount of misinformation regarding what types of life insurance are available to seniors. As well as this, there is significant confusion regarding what these varying types of cover actually insure you for.
 
The most common  confusion is associated with Life Insurance and Funeral Insurance. What most people dont understand is that Life Insurance actually includes a form of Funeral Insurance! For example, lets take a look at ClearView’s Term Life Insurance policy. ClearView’s Life Insurance product includes a ‘funeral advancement benefit’, this benefit is designed to alleviate some of the financial pressure that a funeral can cause. This benefit will pay you $25,000  (assuming your sum insured is greater then $25,000) immediately upon receipt of the deceased’s death certificate. This feature is generally included, to varying degrees, in other term life insurance policies too. 
 
Generally speaking, funeral insurance policies are more expensive than their term life insurance counterparts. To highlight this, we have provided you with a quote for the following scenario – A 65 year old man from NSW who doesn’t smoke. A $15,000 Funeral Insurance quote with one of Australia’s leading banks has resulted in a quote of $113.53 per month. A quote for $50,000 of Life Insurance with ClearView will only cost $82.90 per month. It is vital to keep in mind that the ClearView policy will provide you with an upfront payment of $25,000 (as opposed to the $15,000 that the alternative quote is offering) and a further $25,000 upon completion of the insurance companies investigation. This type of policy could ultimately pay you 4 times as much as what you would get through your typical funeral insurance policy and it’s cheaper!

When looking at taking out insurance once you are over the age of 65, it is very important to consider the maximum entry ages of insurance products as well as their expiry age. The maximum entry age generally refers to the oldest age at which you can still be eligible for a certain product and the expiry age refers to the age at which that product will expire and cease to protect you. With significant differences between insurance company’s expiry and entry ages, it is very important to ensure that you have considered all your options.

Differences Between Life Insurance
And Funeral Insurance

These days, you can’t watch television for more than 30 minutes without seeing an advert for Funeral Insurance. The prevalence of these ads, as well as various other types of marketing, has made it increasingly difficult for people to identify the difference between traditional life insurance and funeral insurance.

Both Life Insurance and Funeral Insurance will pay a benefit to the family of the person insured upon their death. Typically, neither of these policies has a surrender value (no money can be claimed if you cancel the policy).

However, there are a number of differences between these types of cover. They include:

Funeral Insurance will only provide you with a relatively small amount of cover, typically $5,000 – $30,000. Life Insurance can provide you with up to $5 million worth of cover, allowing for you to cover significantly more than your funeral.

Life Insurance is generally far more affordable. A 70 year old male, in good health, looking to spend a maximum of $250 per month, would be able to get: $90,000 of Life Insurance or $30,000 of Funeral Insurance.

Funeral insurance is generally a far simpler product that has a relatively short application form. Life insurance tends to contain many additional benefits (on top of paying a lump sum upon death) that make it a little more complicated. As well as this, Life Insurance generally has a more lengthy application.

Life Insurance Entry and Expiry Ages


What is the oldest you can be to apply for life insurance?

Insurance CompanyLife Insurance Maximum Entry AgeLife Insurance Expiry Age
AIA7599
AMP7099
Asteron Life7599
BT6999
ClearView7599
Comminsure6999
MLC70100
Macquarie Life (Now Zurich)7099
OnePath75130
TAL7599
Zurich6999

Income Protection Entry and Expiry Ages


What is the oldest you can be to apply for life insurance?

Insurance CompanyIncome Protection Maximum Entry AgeIncome Protection Expiry Age
AIA6470
AMP5970
Asteron Life6170
BT5970
ClearView6070
Comminsure5964
MLC5970
Macquarie Life (Now Zurich)6070
OnePath6070
TAL6370
Zurich5970

Trauma Insurance Entry and Expiry Ages


What is the oldest you can be to apply for life insurance?

Insurance CompanyTrauma Insurance Maximum Entry AgeTrauma Insurance Expiry Age
AIA6470
AMP6499
Asteron Life5975
BT5975
ClearView6580
Comminsure6280*
MLC5975
Macquarie Life (Now Zurich)6599
OnePath6570
TAL6169
Zurich5975

* denotes a change to the policy wording after age 70

TPD (Disability) Insurance Entry and Expiry Ages


What is the oldest you can be to apply for life insurance?

Insurance CompanyTPD (Disability) Insurance Maximum Entry AgeTPD (Disability) Insurance Expiry Age
AIA6470
AMP5999
Asteron Life7599
BT5999
ClearView7599
Comminsure5979
MLC5999
Macquarie Life (Now Zurich)6599*
OnePath7599
TAL6199
Zurich5999

* denotes a change to the policy wording after age 65

 

Factual Advice Disclaimer

The information I have provided you is purely factual in nature and does not take account your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require financial product advice you should consult a properly licensed or authorised financial adviser.

Don’t put off your insurance until it’s too late.
Call Curo now to speak to your personal advisor, on 1300 665 356.

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