The cost of life insurance is based on your individual circumstances and the level of cover, so the only way to find out how much you will pay is to get a quote for yourself. Every insurer has their own quoting process, but it’s common to be asked about what level of cover you want, your age, lifestyle, health, and whether you are applying for a joint or single policy. With Seniors Term Life Insurance, you only need to answer eight health questions to apply for cover.

It’s important to remember that the cost of life insurance will likely change over the duration of your policy, as some policy premiums are adjusted based on CPI (Consumer Price Index) and due to the increased risk to insure you as you get older.

What is life insurance?

Before you research the cost of life insurance, it’s important to understand exactly what you are buying (and what you are not!) Life insurance is a form of cover that you can take out to protect your family’s financial future in case you pass away, or, for some policies, suffer a terminal illness. When a claim is made, your family will receive a lump-sum payout that can be used to help with any short-term expenses that come up (such as a funeral, palliative care, grief counselling etc.), as well as assisting ongoing obligations like the mortgage, rent, and other general living expenses.

Every policy has its own benefits and exclusions so don’t forget to weigh up all your options rather than just focusing on the price. While some policies may seem cheaper, they might not cover you for everything you need.

Learn more about what life insurance is >

How much life insurance do seniors need?

This is a question that only you can answer, preferably alongside loved ones as they are the people who are likely to benefit from any payout. Even at the exact same age, everyone’s personal needs will be different.

You should discuss your options with your family to find out what plans they have for the future and whether or not they could afford to live out those plans if you weren’t around. This can be especially vital as we get older and our overall needs/financial wealth may look very different to the way they used to.

Here are some key things to consider when setting a cover amount:

  • whether you are currently working
  • how long until you retire
  • any personal savings, investments, or other forms of income you have
  • your assets
  • your current health
  • the number of dependants that rely on you (spouse, children, or grandchildren).

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Understanding how your premiums are calculated

Life insurance premiums are based on many different factors and may be re-evaluated every year according to the Consumer Price Index (CPI). Premiums are also adjusted to reflect the risk of insuring you. This means that if you take out cover at 55 years of age, your premiums will be different by the time you are 70.

If you’re worried about your premiums becoming too expensive, you should ask your insurer about their premium adjustment rates. This will help you compare the long-term cost of each policy. With Seniors Term Life Insurance, 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.

Did you know

Australian Seniors offers Term Life Insurance starting from $26 per week for a 57 year old non-smoker on a single plan for a $50,000 benefit, with fortnightly or monthly payment options.

Here is a closer summary of the different variables which affect the cost of life insurance:

Age

Unfortunately, the older we get, the more likely we are to experience an event that initiates the option to make a claim (like passing away). Government data suggests that those of us over 65 are more likely to experience poor health, despite stable gains in the national life expectancy. 

To offset this risk, life insurance providers will adjust your premiums each year you are covered, to account for getting older. Most insurers also have maximum entry age requirements for new policyholders, which is why it’s important to consider getting cover while you are still able.

Health

Insurers will ask about your current health as well as any past medical conditions you have experienced. Premiums may be adjusted based on the risk of insuring you. You may also be asked to undergo a medical exam or blood test to confirm your health. Every insurer has their own set of questions and criteria, but it’s unlikely that you will be asked about common flu or headaches.

For those of us who are worried about intrusive medical tests, when you apply for Seniors Term Life Insurance, you’ll only be asked eight questions about your health over the phone.

Gender

You may be asked about your biological gender when you apply for life insurance as premiums could be adjusted based on any risk factors that relate to this. Statistically, men have a slightly lower life expectancy than women and are also more likely to develop common causes of death such as cardiovascular disease and cancer, so this may be taken into account when premiums are calculated.

However, every insurer has their own process for calculating premiums so the price of your policy may not be affected by your gender.

Lifestyle

Depending on the insurer’s needs, your premiums may be adjusted according to any personal risk factors in your life, such as your occupation or smoking status. Unsurprisingly, smokers can expect to pay a higher premium than non-smokers due to the known health risks of cigarettes. This is where those smart health decisions we’ve been making can pay off; data shows that smoking rates continue to fall for those of us aged over 55.

Your cover amount

Part of the reason it’s so important to choose a suitable cover amount is because the level of cover you take out will make a difference to your premiums. A higher cover amount means more financial assistance for your loved ones after you pass away, but you’ll need to make sure the cover amount you choose doesn’t make your premiums unmanageable.

However, it’s also important to be mindful that Australians are increasingly under-insured. This means they don’t have enough cover for their expected needs.

How Australian Seniors can help

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.

Benefits of choosing Seniors Term Life Insurance

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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