What Does Life Insurance Cover?

Life insurance covers the event of your death, or diagnosis of a terminal illness. With Seniors Life Insurance, you can choose your own cover level between $10,000 and $200,000. This lump sum payout can be used by you or your loved ones in any way, and it is intended to help cover your immediate bills, funeral costs, or for terminal illness, other types of bills such as medical expenses.

Even if you are an older Australian aged between 45 and 79, you are eligible to apply for cover for death resulting from any means (excluding suicide for the first 13 months of your policy) and if you pass away as a result of an accident your chosen beneficiaries will receive a triple payout to help with any unexpected costs.

With Seniors Life Insurance you are also covered if you were to suffer a terminal illness where the doctor advises that you have 24 months or less to live. This can be helpful even if you are single, because it means you would be covered for any additional medical treatments, lost earnings, paying a mortgage, other household expenses, and even funeral costs.

When should I get life insurance?

Some older Australians may have found that as you age life insurance can become more difficult to get, as well as more costly, due to rising premiums. However, Australian Seniors has designed a policy for people to be able to get cover later in life, and you can apply if you are aged 45–79. Find out what it means to get life insurance as a senior.

When you withdraw your superannuation in retirement, any life insurance included in your super policy may end. Many older Australians find that they would still like their families to be covered financially if the unexpected was to happen, so they choose to take out a life insurance policy.

Consider the following situations and think about how you and your family would cope. If you were to suddenly pass away due to a medical condition such as a heart attack, stroke, or even by an accident, how would your family manage financially? Along with dealing with significant grief and immediate bills such as funeral expenses, they would also likely have to engage an estate lawyer to settle your affairs. Then they would often have ongoing bills to cope with, such as a mortgage, household bills and more.

Likewise, if you were to suffer a terminal illness, along with the stress of that situation, you would likely have medical bills to pay. You might want to try alternative health treatments that you couldn’t afford, or that might not be covered under your health insurance or Medicare. You and your family might even have travelling and accommodation costs, which can add up quickly. Imagine not having to worry about the medical bills and spending the time relaxing with your family instead. This is where life insurance can help.

What can you use life insurance for?

There are no limits on what you can use a life insurance payout for, you (or your family) can choose to do whatever you want with the money. However, life insurance is intended to be used for medical bills, funeral expenses, or other ongoing costs.

Pay off debts

Australians retiring with mortgage debt has risen 600 per cent since the year 1987, and the average amount of their debt has also soared from $27,000 to over $185,000 and growing¹. Many older Australians have other types of debt, such as credit card debt, car payments and personal loans. If you were to pass away or suffer a terminal illness that affected your current income stream, consider how your family would manage financially.

Life insurance can assist you or your family with paying off any debts you have if the worst was to happen. This can become even more important as you get older, or after you have retired, as you may have to keep a closer rein on your finances.

Nominate your beneficiaries

Seniors Life Insurance allows you to nominate between one and five beneficiaries, which might be people you name in your Will, or others, the choice is up to you. You might nominate your partner, your children, grandchildren, or other family members or friends, for example. In the event of your death, these beneficiaries would receive a lump sum payout of the nominated cover amount that you chose when you set up your policy.

Some people are not able to leave anything behind for their families, even if they have spent their life working hard. A life insurance payout can help ensure your family is in a stable financial position when you are no longer able to provide for them, and they can use the money in any way they need. For example, the money does not have to be used on medical bills or a mortgage. It can be spent by your beneficiaries any way they choose.