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.
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Top causes of death in your 20s… |
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Males |
Females |
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Suicide |
Suicide |
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Car/motorbike crashes |
Car/motorbike crashes |
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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.
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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.
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Top causes of death in your 30s… |
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Males |
Females |
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Suicide |
Suicide |
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Accidental poisonings (drug overdoses) |
Accidental poisonings (drug overdoses) |
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Car/motorbike crashes |
Cancer |
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Forties: 40 to 49 years
With 20 or so years of work behind you and another 20 (at least) ahead of you, now is the time to prepare for the second half of your career and for retirement. Arriving at your forties can bring you sudden perspective on life. Creating a master plan for your retirement is important but it’s likely you’ll have more expenses than ever at this stage (think teenage kids at university).
As your long-term responsibilities become obvious, you will realise that life insurance in your forties is crucial to cover the family’s needs and leave them financially protected. After all, a stay-at-home parent takes care of services that are costly if provided by an outside source.
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Top causes of death in your 40s… |
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Males |
Females |
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Suicide |
Cancer |
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Heart Disease |
Suicide |
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Accidental poisonings (drug overdoses) |
Accidental poisonings (drug overdoses) |
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Early fifties: 50 to 54 years
Early-fifties are often considered your peak earning years. You’ll typically want to consolidate and make sure that all you worked hard for is protected in the event of the unexpected.
Grandchildren may now be a part of your life, along with caring for aging parents. Your entry into middle age carries a different set of responsibilities which life insurance can help alleviate.
Mortgages and any other debt that’s still outstanding won’t be an added burden on your family when you have an appropriate life insurance policy in place.
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Top causes of death in your early 50s… |
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Males |
Females |
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Cancer |
Cancer |
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Heart Disease |
Heart Disease |
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Suicide |
Suicide |
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Late fifties: 55 to 59 years
With retirement on the horizon, most in their late fifties want to have the peace of mind that they will be able to enjoy life once they stop working. Even though your children may be grown up and self-sufficient, it may still be a good idea to buy life insurance. If one spouse passes away, even at an advanced age, the remaining spouse may live at least another 10 or 20 years and will need to have some sort of financial security.
You may also have ageing parents who depend on you for financial assistance. It’s always a good idea to put in place a financial safety net for dependents in case you are suddenly taken out of the picture.
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Top causes of death in your late 50s… |
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Males |
Females |
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Cancer |
Cancer |
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Heart Disease |
Heart Disease |
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Liver diease |
Respiratory disease |
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