Life Insurance for seniors over 60

Can I get life insurance when I’m aged 60 and over?

Generally speaking, if you’re aged 60 and over you should be able to find a life insurance policy that offers you cover based on your age, provided you meet the other eligibility criteria of the policy. Most insurers have an upper limit on what age you can be when taking out a new policy. For example, based on the life insurance policies on Canstar’s database, the average entry limit is 67 years old, with the maximum entry age being 74. This means that options for life insurance for seniors over 70 are quite limited. Seniors over 80 may find it difficult to find a provider at all.

That said, age is just one of the factors that could determine whether a provider will give you life insurance cover. Your health, lifestyle (e.g. whether or not you smoke), occupation and hobbies are also likely to be considered.

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Why would someone who’s aged 60 and over want life insurance?

Depending on your circumstances, life insurance could still be useful if you’re someone who’s aged 60 and over and/or who is retired. For example, you may still have financial commitments, such as a mortgage or personal debts. There’s also the consideration of providing for any children or other relatives who may be financially dependent on you, or who you care for in some other way.

Some consider life insurance for over 60s as a way of ensuring their funeral and other related expenses will be covered when they pass away. A funeral benefit (also called a Funeral Advancement Benefit) is a feature offered by some life insurance policies which provides an upfront payment to cover funeral costs.

But if your family’s finances are in order, you’ve minimal household debt and you no longer have dependents, you may decide you don’t require any cover. You may also find that you’re adequately covered for life insurance through your super fund. Keep in mind though that total and permanent disability (TPD) insurance cover in super usually ends at age 65, and life cover usually ends at age 70.

Do I need life insurance after retirement?

If you retire, you can often expect a reduction in income. This could impact your ability to pay life insurance premiums, especially if they rise. Ultimately it depends on your personal financial situation. You may still earn income from sources like assets, and feel that they could help cover the costs if you were to pass away. On the other hand, you may still have debts like a personal loan or mortgage, which could become a financial burden on your family when you pass away.

What types of life insurance are seniors eligible for?

When it comes to the types of seniors life insurance that is available, term life insurance is generally the product with the highest maximum age of entry. Other products such as total and permanent disability (TPD), trauma insurance and income protection insurance typically have lower maximum ages of entry (often around 60 years of age) so they may not be suitable.

For people with an existing policy, the expiry age is generally higher than the maximum entry age. This can be a factor to consider if you intend to cancel a life insurance policy, as it could continue to provide cover were you remain a policyholder. You may then find yourself unable to take out a new policy with another provider due to your age being higher than the maximum entry age.

What does term life insurance for seniors cover?

Term life insurance (sometimes referred to as ‘death cover’), is what we usually mean when we talk about life insurance. It provides a lump sum payment to your nominated beneficiaries in the event of terminal illness or death. It could be suitable if you’re looking to provide for your family after you pass away. This type of policy only provides coverage for a set term, so you’ll need to check the maximum entry age and the expiry age when considering options. It could also be worth checking if any additional features or add-ons are offered, such as a funeral advance benefit.

How much does life insurance cost when I’m over 60?

There’s no simple answer to how much life insurance costs for over 60s, as each insurer takes into account different factors when assessing an applicant. Age, as well as gender, lifestyle habits, your occupation and medical history can all affect your life insurance premiums. Canstar research also shows a continuous increase in premiums for both men and women as they age. By the time you reach your 60s, you may find that the premiums for a life insurance policy could be in the hundreds of dollars per month.

How do seniors life insurance premiums work?

When it comes to seniors life insurance, there are two different types of premiums that you could potentially choose. Stepped premiums are like the ones mentioned above, which are recalculated at each policy renewal, usually increasing each year based on the higher chance of a claim as you age. Level premiums, on the other hand, charge a higher initial premium at the start of the policy with changes to the cost being based on administration costs rather than your age. This usually means that increases happen more slowly over time.

How long will life insurance cover last?

An important component of life insurance that you’ll need to factor in is your policy’s expiry age. This is when a policy will no longer cover you when you reach a certain age  and/or the maximum age up to which a claim can be made. Not all providers on Canstar’s database list an expiry age. But when they do, Canstar Research says they all list an expiry age of 99.

Who has the cheapest life insurance for seniors?

You’ll need to compare quotes from a number of providers to see what price they will offer you for a new life insurance policy. But while the price may be an important factor when choosing a policy, it’s not the only consideration. It’s also important to consider the level of cover provided, any exclusions, and the expiry age of your preferred policy. It’s also often worth checking the policy’s product disclosure statement (PDS) and other relevant documents to make sure the policy is suitable for your needs. You might also consider seeking  professional independent advice.

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