How does life insurance work?

What type of life insurance is best for you?

While some life insurance products offer lifetime cover, many seniors may find this type of insurance can be difficult or even impossible to obtain once in your 60s due to low entry age requirements and substantial health and lifestyle requirements required to be met. Before choosing a life insurance policy, it’s important to understand the differences between the types of policies that are available, so you can make the best decision for your individual situation.

Lifetime insurance

Also known as ‘all of life insurance’, this type of policy covers you for as long as you’re alive, or until you make a claim or decide to cancel your cover. This type of life insurance can offer protection over the course of your entire life, however cover may be subject to certain restrictions as you get older which can make it difficult to take out a policy after you reach a certain age.

Term life insurance

Term life insurance is a policy that covers you for a set period of time or until you reach a certain age, and can be a great way to make sure you and your loved ones are protected during the stages of your life, when you need cover most.

Seniors Term Life insurance was designed with the over 50s in mind:

• You can apply over the phone by answering eight questions about your health, and there’s no need for blood tests, medicals or paperwork.
• You can choose a benefit amount that suits you and your family’s needs, between $10,000 and $100,000 and once approved, rest easy knowing you and your family are covered for the next 20 years or until you turn 85, whichever comes first.
• When your family claims, Seniors Term Life insurance offers a 20% advance payout to cover funeral costs so your loved ones have fast access to money for your funeral
• Your family’s benefit amount will be tripled if you pass away due to an accident.
• We’ll even assign you your own personal claims specialist to look after everything, so there’ll be no need for your loved ones to explain things to multiple people.

What should you check before getting life insurance?

Before you apply for a new life insurance policy, you should always:

• Check if you already have cover – you may have taken out a policy in the past and forgotten about it, or a loved one may have taken out a policy for you, so it makes sense to confirm this so you’re not paying for the same thing twice. 
• Read the Policy Document – this explains a policy’s terms and conditions, including all inclusions and exclusions, so review carefully to make sure any new cover meets your specific needs.
• Review other policies – while it’s possible to take out multiple life insurance policies, there are likely to be limits on how much you can claim on more than one life insurance policy when they are held with the same insurer, so check all terms and conditions carefully.
• Consult your loved ones – whether it’s just as a courtesy or if you want to involve your loved ones in a process that will ultimately benefit them, it makes sense to include your family in any discussion around your plans for a time when you won’t be around any longer.