Life insurance for people aged over 60 is available, provided they meet the eligibility criteria of the policy. Although most insurers have an upper limit on the age of the policyholder, the average entry limit is 67 years old, while the maximum entry age is 75. Other factors such as health, occupation, lifestyle, and hobbies are also considered. Life insurance is useful for those who have financial commitments such as mortgages or personal debts. It also provides for dependents or relatives who rely on you financially, or for covering funeral expenses.
|Policy Type||Maximum Entry Age||Average Cover Expiry Age|
|Term Life Insurance||Highest maximum age of entry||91 years old|
|Total and Permanent Disability (TPD), Trauma Insurance, and Income Protection Insurance||Around 60 years of age||N/A|
Term life insurance, also known as “death cover,” provides a lump sum payment to the nominated beneficiaries in the event of terminal illness or death. It only provides coverage for a set term, so you need to check the maximum entry age and the expiry age when selecting options. The cost of life insurance for seniors varies depending on factors such as age, gender, smoking habits, occupation, and medical history. The average expiry age is 91 years, while the maximum is 99 years, and the premiums increase as they age, which could cost hundreds of dollars per month by the time you reach your 60s.
Life insurance policies that provide coverage well beyond 70 years old are available outside of super, as TPD insurance cover in super usually ends at age 65, and life cover usually ends at age 70. However, whether to take out life insurance is a personal decision based on individual circumstances. If you need guidance in making that decision, it could be worth getting personalised financial advice.