Compare the Best Life Insurance For Seniors Over 65 Years Old

For Australians over 65, life insurance can address crucial financial needs, such as covering funeral costs, paying off debts, and securing financial support for dependents. 

Options like funeral insurance can relieve loved ones from the financial burden of end-of-life expenses, while term life insurance offers flexibility to cover larger obligations, such as paying off a mortgage or providing a financial legacy for your beneficiaries.

But most of all, life insurance for over 65 year olds provides peace of mind by ensuring that your financial responsibilities are well managed and your loved ones are financially supported after you pass. 

How much does over 65 life insurance cost? 

Premiums for over 65 life insurance vary widely depending on the insurer, the coverage amount, the policy options you choose, and your individual circumstance. 

For example, a 66-year-old, non-smoking, retired female living in Queensland could expect to pay around $150 to $270 per month for life insurance with $250,000 coverage.

Alternatively, a 74-year-old, non-smoking, retired male living in New South Wales could expect to pay around $480 to $700 per month for life insurance with $250,000 coverage. Sources: Figures are per Compare Club online quotes

Factors that can impact your life insurance premiums include: 

• Your age: Life cover premiums typically increase with age. Rates for those in their late 60s or 70s are often significantly higher than for younger applicants​.

• Your health status: Insurers will likely assess your current health and medical history to determine risk. Conditions like heart disease, diabetes, or cancer can lead to higher premiums.

• Your smoking status: Smokers generally pay higher premiums than non-smokers due to the associated health risks.

• Your coverage amount: Higher coverage amounts usually lead to higher premiums. For example, you’ll likely pay higher premiums for $500,000 coverage than for $250,00 coverage.

Your policy options: Depending on the insurer, adding additional features to your life cover such as total and permanent disability (TPD) or trauma cover can increase premiums. Note that you can’t add these additional features in if you are older than 64.

Is Life Insurance Worth It Over 65 years old?

Deciding whether life insurance is worth it for individuals over 65 depends on their specific requirements, risk tolerance and what they are looking to protect in the event if they pass away.

Expenses that your family might struggle to manage without you and/or your income can include: 

• The costs of raising dependents;

• Outstanding mortgage/s;

• Other debts;

• Ongoing lifestyle costs such as school fees and rent;

It  might be a good idea to talk to an expert specialising in life insurance.

Can I still get covered if I have a pre-existing medical condition?

Cover for any pre-existing medical conditions depends on your insurer and the type of life cover you hold with them. While term life insurance often covers pre-existing conditions, other policies such as TPD, trauma, and income protection may have certain exclusions. Some insurers offer life insurance for people with pre-existing medical conditions, but at a higher premium rate or with limitations on benefit payouts related to your medical condition. 

The key health issues for over 65 year olds in Australia include the following leading causes of death among seniors:

What are life insurance benefits for over 65s?

There are several life insurance benefits for over 65s, including: 

• Funeral and end-of-life costs: Funerals in Australia can be costly. Ensuring that these expenses are covered with funeral cover as part of your life insurance policy can prevent financial strain on loved ones who may already be dealing with emotional stress. 

• Outstanding debt: Some seniors may still have financial obligations, such as mortgages or personal loans. Life insurance can offer peace of mind by covering these debts, allowing family members to avoid inheriting financial liabilities.

• Financial security for dependents: Seniors who still support dependents, such as a spouse or adult children with disabilities, might worry about their family’s future financial stability. Life insurance provides a way to secure an ongoing financial foundation for your loved ones.

• Terminal illness: Some life cover policies may pay a lump sum if you’re diagnosed with a terminal illness. Alternatively, trauma insurance may pay a lump sum if you’re diagnosed with a specific illness or injury, such as cancer. However, most insurers apply a maximum entry age for trauma insurance. Note that all life insurance policies include terminal illness cover. 

Life Insurance for Over 65 year olds: Key Terms

• Term life insurance: Typically known as ‘life cover’ and sometimes referred to as ‘death cover’, this type of life insurance pays a lump sum to your beneficiary(s) as listed in your will if you pass away or are diagnosed with a terminal illness. 

• Trauma insurance: Also known as ‘critical illness cover’, trauma insurance pays a lump sum if you’re diagnosed with a specific illness or injury, such as cancer. 

•  Income protection insurance: If you’re still working, income protection insurance may cover up to 70% of your typical income, usually monthly, if you can’t work temporarily due to injury or illness. The maximum entry age is usually 60, but some insurers do offer cover for older Australians. 

• Funeral insurance: Funeral insurance pays a lump sum to your listed beneficiary to pay for your funeral expenses when you pass away. Funeral insurance is often included in term life insurance policies, however may also be available as a stand-alone policy.

How much does seniors' life insurance cost?

The cost will vary for everyone depending on your age, employment, medical history and whether or not you're a smoker.

To help you get an idea of how much it will cost you, below is a table of the average cost of a $500,000 term cover policy by age group for a man and woman in NSW in an office job with no pre-existing medical conditions.

This data was obtained on 31 July 2020.

The table is only indicative, so your quotes may be less or more depending on your personal circumstances.

Below is an indicative table of the average cost of a term cover policy

How much does life insurance for senior cost?

*(based on $500k term cover, non-smoker, office job in NSW)

What factors impact the cost of seniors life insurance?

As with any insurance, several factors can impact the cost of seniors life insurance, including but not limited to:

• Your age -- Typically the older you are, the higher your premiums will be.

• Your gender -- Premiums for older men are usually higher because men statistically have a lower life expectancy.

• Whether or not you smoke -- If you're a smoker, your premiums will be higher.

• Your medical history -- If you have pre-existing health conditions, your premiums may be higher.

• Your family medical history -- Your premiums may be higher if your immediate family members have a history of major illness such as heart disease.

Conclusion 

If you’re aged 65 or over, you may still be eligible for life insurance. Whether you want to financially provide for your beneficiaries after your passing, or simply want to cover your funeral expenses, Compare Club can help you find a life insurance policy that fits your goals and budget.

Compare policies now or speak with a Compare Club advisor for expert help. 

Frequently Asked Questions

What is the best life insurance for over 65s?

The best life insurance for over 65s generally depends on your specific needs, such as funeral expenses, debt coverage, or providing for dependents. The experts at Compare Club can help you find a life insurance policy that fits your personal needs.  

How to choose life insurance over 65?

When choosing life insurance, consider the coverage amount you need. For example, you might like to leave a significant lump sum to provide for your beneficiaries, or you might just want to cover your funeral expenses. It's also important to review options for additional benefits, like trauma insurance. Comparing policies across providers can help find the right fit for you.

Can I get funeral insurance over 65?

Yes, many insurers offer funeral insurance for people over 65. This type of policy covers the cost of end-of-life services and typically does not require medical exams, making it accessible for older individuals. 

Is life insurance with no medical exam over 65 available?

Yes, no-exam life insurance options are typically available for seniors over 65. However, these policies may come with higher premiums. Please note all our policies are medically underwritten.

Additional Resources

• Use this free calculator to find out how much life insurance coverage you might need.

• APRA publishes quarterly life insurance performance statistics.

Sources

APRA

MoneySmart – life cover

MoneySmart - trauma insuranceSeniors.com.au 

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

Meet our life insurance expert,  Matthew Lang

Matthew's top life insurance tips:

• 1

  Identify what you want out of life insurance before you buy. Knowing the purpose of your life cover will help you choose a policy that meets your needs.

• 2

  It's easy to assume that the sole purpose of life cover is to leave money behind for your family, but there's more to it than that.

• 3

  Life insurers like those on our panel pay an average of 97% of claims in full.

• 4

  There are different types of life insurance, including term life insurance, income protection, trauma cover and total and permanent disability cover.