Life Insurance Age Limit Australia

Find out what the age limits are for different life insurance policies with Savvy today.

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, updated on July 10th, 2023       

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Life Insurance Banner - Senior couple laughing together

As we age, the need for financial security becomes more important than ever. Life insurance can provide peace of mind by ensuring your loved ones are taken care of in the event of your covered illness, injury or passing. However, many seniors and other people wonder if there is an age limit for obtaining life insurance in Australia.

You can find out all about the different age limits which can apply to life insurance policies across the country through Savvy. It’s important to understand how they work, as well as know about the factors which may impact your individual age limit. Learn more about them here.

What are the age limits for life insurance in Australia?

First and foremost, it’s important to understand the difference between two key age limits which apply to life insurance: entry age and expiry age.

Entry age refers to the age at which an individual can apply for and be accepted for a particular type of life insurance policy. For example, if a policy has a maximum entry age of 70, an individual cannot apply for that policy once they pass that age.

On the other hand, expiry age refers to the age at which a life insurance policy’s coverage will end. This means that the policy will no longer offer protection beyond that age. For instance, if a policy has an expiry age of 80, the individual will no longer be covered for injury, illness or death by that policy once they pass that age.

The age limits for each type of life insurance in Australia are all subject to insurers’ eligibility criteria and terms and conditions, but the following are general indications of what these may be for seniors:

  • Life cover: life cover, also known as term life insurance, can provide coverage for death or terminal illness. The maximum entry age for life cover varies between insurers but can reach up to 75 years old in some cases. The expiry age may reach up to 100 years old for seniors with some providers (and sometimes older).
  • Trauma cover: trauma cover can provide coverage for critical illnesses and injuries such as cancer, heart attack and major head trauma. The maximum entry age for trauma cover also varies but is usually 65 years old. The expiry age is typically 70 years old, although some insurers may set this at 75.
  • TPD cover: total and permanent disability cover can provide financial protection if you become permanently disabled and unable to work. The maximum entry age for TPD cover can reach up to 75 years old, with the expiry age as high as 100 years old with some insurers.
  • Income protection cover: income protection cover can provide financial support if you’re temporarily unable to work due to illness or injury. The maximum entry age is typically 60, although some may extend this to 65 years old, while the expiry age is usually 65 (with some able to offer cover up to 70 to 75 years old).

What factors can affect my life insurance age limit?

As mentioned, all life insurance coverage in Australia is at the discretion of your provider. This means that while the above may be the maximum age limits available, they may not necessarily apply to you if you’re considered a greater risk to insure. Some of the factors which can impact your coverage age include:

  • Health: your health is perhaps the biggest factor in determining your life insurance age limit. If you have any pre-existing medical conditions, you may be subject to exclusions, higher premiums or, in some cases, refusal of coverage. Additionally, if your family has a history of critical illness, your coverage and policy cost may also be impacted.
  • Smoking: if you’re a senior who is also a smoker, you may be subject to a lower life insurance age limit than someone who has never smoked in their life.
  • Occupation: some occupations are considered more dangerous than others and may affect your life insurance age limit. For example, if you work in the mining or construction industry, you may be considered a higher risk than an office worker.
  • Hobbies: some hobbies, such as extreme sports, may also affect your life insurer’s willingness to cover you. If you participate in activities which are considered high-risk, you may have a lower age limit or higher premiums.
  • Lifestyle: your overall lifestyle can also affect your life insurance age limit. Factors such as your weight, blood pressure and alcohol consumption may be taken into consideration.

Common life insurance age limit queries

Will I have to undergo a medical exam before purchasing life insurance?

Whether or not you'll need a medical exam before purchasing life insurance will depend on the insurer and policy you choose and your circumstances. Some policies may require a medical exam, while others may not. It's important to speak with your insurer to determine if a medical exam is necessary.

How should I compare life insurance policies as a senior?

When comparing life insurance policies as a senior, it's important to consider factors such as the cost of premiums, the inclusions and exclusions, benefit limits and waiting periods. It’s important to compare your options carefully before you buy your life insurance policy to help you determine which is the most suitable for your needs at the right price.

Are whole life insurance policies still available in Australia?

No – whole life insurance is no longer available in Australia, having been phased out in the early 1990s. However, if you purchased whole life insurance before this period, your policy may still be active. Check with your insurer to determine whether you can still claim your surrender value as part of your whole life policy.

How do I make a claim on my life insurance policy?

To make a claim on your life insurance policy, you or your family will need to contact your insurer and provide them with relevant documentation, such as a death certificate or medical report. Your insurer will then assess your claim and may request additional information or documentation as needed. It's important to familiarise yourself with your policy's terms and conditions to ensure a smooth claims process.

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Compare life insurance policies side-by-side

Through Savvy, you can consider a range of competitive life insurance policies from reputable insurers, whether you're after life, income protection, trauma or TPD cover. Get the ball rolling on comparing your available options today!

Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.