Life insurance for seniors

Your final years of working can help you achieve your retirement goals: it might be worth considering life insurance in case things go wrong.

You may have said goodbye to the kids and watched them go off on their own journey. While you may not need to worry about supporting them financially anymore, it’s still important to think about your own financial plans as you approach retirement.

Your final years working can help you transition into a smooth and worry-free retirement. But if you suffer a serious setback like a terminal illness diagnosis or even pass away unexpectedly, life insurance is one way to help make sure you or your partner aren’t left with unexpected financial challenges.

Life insurance can help with the future costs such as:

Paying the mortgage;
Credit card debt;
Property maintenance;
Replacing an aging motor vehicle;
Travel;
Aged care costs such as residential care; and
Contributing to your child’s wedding.

You have enough experience to know that life doesn’t always go to plan. One of life's twists might be that you pass away during these vital earning years, before you accumulate enough through savings, investments and superannuation for your partner to be comfortable long into retirement.

Health facts

While Australia has some of the highest living standards and life expectancy in the world, there are still risks associated with getting older. According to the Australian Institute of Health and Welfare, 66% of deaths in 2018 were among people aged 75 and above.¹ Australians over the age of 65 are also at a higher risk of decreased health due to serious illnesses.²

By organising life insurance through Choosi, your beneficiaries could receive a lump sum of up to $2 million (depending on your age and policy) in the event of your death or a terminal illness diagnosis. This could be used for paying off the mortgage and other financial obligations as you approach retirement, or to help with any potential health challenges after a terminal illness. It might make a difference to your older children too, who might otherwise have to pick up the pieces and assist their widowed parent financially.

Types of insurance

The products Choosi arranges direct have the following features.

Life Insurance

Cover for death or diagnosis of a terminal illness.^
Lump sum of up to $2 million, depending on your age and policy.
Cover can be adjusted to suit your individual needs.

Children's Insurance

Covers your child for death, diagnosis of a terminal illness or a specific and defined serious injury or illness.
Usually available as optional cover with life insurance policies.
Lump sum payment (up to $50,000) to help with funeral costs, medical expenses, or other family needs should the child pass away.
May be limited to be available for children who are Australian residents between 2 and 17 years of age. Waiting periods may apply.

Total and Permanent Disability Insurance*

Cover for when you become totally and permanently disabled.
Usually available as optional cover with life insurance policies.
Can help you and your family manage the costs of treatment and rehabilitation. Benefit paid in full if you suffer a disability which leaves you permanently unable to work.
Lump-sum payment of up to $1 million (depending on age).
Eligibility between ages 18 and 60 and working at least 20 hours per week.
Cover may expire after you turn 65.

Serious Illness Insurance*

Cover for a range of defined serious illnesses.
Often available in as optional cover with life insurance policies.
Assists with paying extra expenses during a defined serious illness.
Lump-sum payment of up to $500,000 (or 50% of life insurance benefit amount).
Eligibility between ages 18 and 59.
Cover may expire after you turn 65.

^ For the policies available direct through Choosi diagnosis of a terminal illness means where life expectancy is 12 or 24 months or less (depending on the policy) and cover is excluded for death or terminal illness as a result of a self-inflicted injury in the first 13 months.

* Payment of any Total & Permanent Disability or Serious Illness benefit (if applicable) will reduce the available death benefit.

As an empty nester, life insurance could offer you:

Peace of mind for your or your partner’s retirement plans – should you pass away or be diagnosed with a terminal illness, life insurance may help your partner carry out any plans made for the years ahead, such as travelling, relocating, or just enjoying a long-awaited retirement.
A way to prepare for unexpected illnesses or injuries – if you are worried about any life-changing events disrupting your plans as you get older, life insurance optional cover such as serious illness and total and permanent disability cover, could help you deal with medical costs or advanced care needed after a defined serious injury or illness.

For assistance, contact Choosi's team of Choosers on 1300 363 5261300 363 526 or request a quote today.

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

References

1. AIHW 2020, Deaths in Australia, https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/age-at-death
2. AIHW 2023, Older Australians, https://www.aihw.gov.au/reports/older-people/older-australians/contents/health/health-disability-status

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