Life insurance provides a lump-sum payout to you if you become terminally ill, or to your family when you pass away. The process starts by getting approved by a provider and then setting your benefit amount (how much you want your family to receive). This will vary depending on the exact insurer you choose – you might be asked to undergo a medical test before taking out cover, or your benefit amount may be capped depending on your age bracket.
Life insurance covers death by any cause, although suicide is usually excluded for a set period of time. That means your family will receive a pay out if your death is related to an event such as:
Life insurance also covers you for terminal illnesses, so you can access your benefit amount if a doctor concludes that you will likely pass away in the near future. Although every provider has their own criteria for a terminal illness, the diagnosis from a doctor is usually at having 12 months or less to live in order to claim.
It’s important to remember that every life insurance policy has specific exclusions and limits. Make sure you read the Product Disclosure Statement carefully to know what you’ll be covered for and what limits are placed on your cover.
Some insurers offer policies designed more closely for seniors. For example – some policies let you apply for cover at an older age than others, or even offer specific discounts. Depending on the insurer, you may be able to apply without going through the usual hassle of a blood test or medical exam.
Find out more about how life insurance works for seniors >
If you’re considering life insurance, the first thing you should check is whether you already have cover. Despite decades in the workforce, a lot of us don’t realise that life insurance is sometimes included in our superannuation fund. However, keep in mind that life insurance through your super isn’t always tailored to your exact needs, which could mean you are under-insured. You should contact your superannuation provider to check how much you may already be covered for.
Don’t forget to review any other insurance policies you have in case you are already covered for your expected needs. It’s also important to understand any limitations when claiming on more than one policy with the same insurer.
Finally, don’t forget to consult your loved ones when considering life insurance. The amount of cover you need will depend on what your plans are for their future, and whether they could manage financially if you passed away. Without a financial safety net, your family may need to make some lifestyle changes. This might include relocating, downsizing and selling the family home, or even postponing their retirement.
The sooner you consider getting life insurance the better, because as you age it may become harder to get approved for cover. Applying for, and taking out cover while you’re still healthy generally works out easier, since your premiums and insurability depend on whether or not you have any pre-existing medical conditions and if you’re of an eligible entry age.
If you’re considering term life insurance, then it’s also worth looking at how long the cover period is. Term policies can last 10 or 20 years, or until you reach a certain age, so make sure your policy covers the portion of your life where you will need it most.
When you first set up your policy, you’ll need to nominate your beneficiaries, which are the people who are authorised to make a claim and receive your cover amount if you pass away while the policy is active. While every insurer has their own claims process, here is a quick run-down of what it’s like to make a claim with Australian Seniors:
You (if you are diagnosed with a terminal illness) or your nominated beneficiaries (if you pass away) will need to let us know that a claim will be lodged. At this stage, a dedicated claims agent will contact you to discuss the claims process and provide further instructions.
You will need to complete the required claim forms, depending on what exactly you are making a claim for (i.e. death or terminal illness).
Send the completed forms back to us. You will receive a notification that your claim has been lodged, and we will keep you updated on the outcome.
You will need:
Any official documents that you supply to your insurer (such as a death certificate or identification) need to be certified copies according to Australian law.
Seniors Term Life Insurance helps put you back in control of your family’s financial future, with up to $100,000 in cover right when it’s needed most.
A flexible cover amount that suits you – choose how much you or your family will receive if you pass away or become terminally ill. You can set a benefit amount from $10,000 up to $100,000.
Cover for when you need it most. We know that the older you get, the more you have to protect. That’s why our cover is designed for people aged 45 to 79, protecting you for up to 20 years or until age 85, whichever comes first.
Immediate cover. Once your policy is set up, you’ll be covered straight away for death by any cause, and for terminal illness (excluding suicide for the first 13 months).
20% advance payout to cover funeral costs. When your family makes a claim, we’ll give them 20% of the benefit amount in advance, so they won’t have to worry about the cost of your funeral or other immediate expenses.
Triple payout for Accidental Death. Your family’s benefit amount will be tripled if you pass away from an accident, helping with any last-minute expenses they might face.
Easy to apply with no medicals. Simply answer eight questions about your medical history over the phone. Once approved, you can get covered in minutes.
We’ll keep your premiums manageable. Unlike some life insurance policies, your annual premium increase won’t be based on your age which will help with budgeting later in life. Plus, we offer lower starting premiums for non-smokers.
Your own Australia-based personal claims specialist. If you or your family need to make a claim, we’ll assign one of our local claims specialists to look after everything. No need to explain things to multiple people.
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Family1. Older Australia at a glance – Australian Institute of Health and Welfare
Get peace of mind when choosing Australian Seniors. Talk to one of our friendly team members today. We're here from 8am to 8pm Monday to Friday on 1300 050 510. Or, if you prefer, we can call you back when it suits.