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HealthTerm life insurance is a type of insurance policy that covers you for death or a terminal illness, for a set period of time. The cover period (term) is usually a defined number of years, or until you reach a certain age. This can be a smart way to make sure you and your loved ones are financially protected during the later stages of your life.
How does term life insurance work?
Term life insurance has a few key differences compared to some life insurance products. The key difference being a term life policy expires after a certain ‘term’, usually a number of years or when you reach a certain age, whereas some life insurance products will remain active as long as you continue to pay your premiums on time. When applying for term life insurance, you will need to set a benefit amount, which is the amount of money you want to be covered for. Should you pass away or suffer a terminal illness, you or your family will receive a lump-sum payout to help with ongoing living costs, funeral expenses, or anything else needed.
Level term life insurance
Level term life insurance is a type of policy where your cover amount stays the same over time. This means that your family’s final payout will never change, regardless of inflation or how long the policy has been active.
This type of policy can ensure that you always know exactly how much you or your family will receive upon a claim, making it easier to plan their financial future. It can also offer more freedom over how the money gets used after making a claim as the benefit amount is paid in a lump-sum.
Benefits of term life insurance
Term life insurance offers a few advantages over other types of life insurance. Some term policies are much easier to apply for as you don’t need to go through any intrusive medical exams or long forms. In the case of Seniors Term Life Insurance, all you need to do is answer is eight questions about your health to apply for cover.
Seniors Term Life Insurance can be a great option for those who only need cover for a limited time in their life. Whether you’re going through unexpected concerns as you get older or have just made large financial commitments which you need to meet, taking out term life insurance means you won’t have to worry about your financial plans being interrupted during the most unpredictable stage in your life.
Term life insurance for older Australians
Some insurers offer term life insurance designed exclusively for those aged 45 and over, with benefits that can become more important as you age. Request a quote for Seniors Term Life Insurance to choose your cover level and find out about cost.
A term life insurance policy offers many great benefits for those of us who are taking on life’s late challenges, such as retirement or downsizing. There’s no denying that we may be at risk of certain setbacks that we probably didn’t have to worry about when we were 25. For example – if you have adult children, they may still need a helping hand in becoming financially independent.
Term life insurance in Australia
It’s important to do your research and choose an insurer that offers the best possible value for your personal needs and goals.
Direct term life insurance
Direct term life insurance is a type of life insurance policy that you can purchase for yourself directly from an insurer, such as Australian Seniors. This means you don’t need to go through any third-party agents or brokers. Although direct life insurance is very common in Australia, it’s a good idea to understand the differences or overlaps term life insurance has with other types of policies, such as group life insurance, or purchasing insurance through a broker.
Read more about direct life insurance >
Group life insurance
Group life insurance is a type of cover that you receive from your employer or superannuation fund, where several people are insured under a single contract. Your employer or union usually purchases a policy on your behalf and includes the cover as part of your remuneration.
Many Australians already have some form of group life insurance built into their superannuation, although it’s important to remember that this cover is not tailored to your specific circumstances. If you feel that you need more cover, you can take out a direct policy based on your individual needs and financial plans.
Life Insurance FAQsFrequently Asked Questions
Does term life insurance cover accidental death?
Yes, Seniors Term Life Insurance covers you for death caused by accidents, and your policy will cover you for a set period of time. The cover period (term) for Seniors Term Life Insurance is 20 years, or until your 85th birthday, whichever comes first. In the event of an accidental death, your family’s payout will be tripled (up to a maximum of $300,000).
Depending on your personal circumstance, this may be a smart way to make sure your loved ones are financially protected if the worst was to happen. This can be even more important to offer you peace of mind as you get older. For more information head to our page on direct term life insurance.
Does my life insurance policy expire?
Seniors Term Life Insurance provides cover for a specified period of time (meaning it has an expiration date). Seniors Term Life Insurance is specially designed with Australian seniors in mind, you can get cover later in life; from age 45 all the way up to age 79, and you can keep your policy for 20 years or until you are 85, whichever comes first.
How much cover can I get?
The choice is up to you. You can choose a cover amount that suits you, and your family’s needs, from $10,000 up to $100,000 in increments of $5,000. This means that you’ll have the peace of mind knowing that an agreed amount of money will be paid to you, or your nominated beneficiaries when you (or they) need it the most. This could give you an added feeling of security if you have left the workforce, or are on limited savings as you get older.
Is a life insurance payout tax deductible?
The good news for older Australians is that your life insurance payout will usually be tax free. This is important as it means that any money you or your family receives will be able to be put towards your general expenses or bills. In most cases if a beneficiary of a life insurance policy receives the death benefit, this payout is not counted as taxable income, and they will not have to pay taxes on it. However, it is important to note that premiums are not tax deductible (in most cases). Read more about life insurance and tax considerations.
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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Better LivingReady to choose Australian Seniors?
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.