Life Insurance At Different Stages Of Life

CHRISTINE THELANDER
19 June 2015
Each year Canstar researches and rates the direct life insurance policies available in the Australian market. This year we have compared 31 direct life insurance policies from 27 insurance companies. Our research covers 5 age groups and 20 common profiles detailing gender and smoking status of people within their 20s, 30s, 40s, early-50s and late-50s.

So – what life insurance-related issues do people need to think about at different stages of life? Here’s a quick rundown:

Twenties: 20 to 29 years

Chances are if you’re in your twenties, single with no children or dependents, you may believe that life insurance is something that can wait till “later on”. However, the idea of waiting till you’re married and in your thirties may not be so relevant these days.

The biggest advantage of buying life insurance when you’re young and healthy is that you’ll enjoy lower premiums than when you buy life insurance at a more advanced age. If you have the misfortune of contracting a chronic health condition when you’re older (before you sign up), you may have death as a result of that condition excluded, or your monthly premiums may be significantly higher, if you’re granted cover at all.

Consider your family as well. With so many configurations of sole-parent and blended families who live with their children, it’s not uncommon to see people in their twenties supporting others. In this case, life insurance provides a financial safety net for them in the event that something happens to you. This same scenario is repeated if you have a significant outstanding student loan debt (apart from HECS). The right life insurance policy could help protect your loved ones from any unwanted financial burdens.

Top causes of death in your 20s…

Males

Females

Suicide

Suicide

Car/motorbike crashes

Car/motorbike crashes

Accidental poisonings (drug overdoses)

Accidental poisonings (drug overdoses)

The source of all causes of death noted in this article is the Australian Bureau of Statistics.

Thirties: 30 to 39 years

The thirties is an exciting adventure for many. Buying your first home, changing jobs, getting married and starting a family – it’s all usually rolled up into this age group. Part of the whole thing is preparing should something happen and one of you is left alone.

Life insurance can help ease the financial burden brought on by the untimely and sudden death of a spouse. For example, you may want to cover your home mortgage amount so that your spouse and children continue to have a roof over their heads should something happen to you.

Top causes of death in your 30s…

Males

Females

Suicide

Suicide

Accidental poisonings (drug overdoses)

Accidental poisonings (drug overdoses)