Life Insurance Over 60 & 65

Compare life insurance for over 60s and 65s from our panel of insurers with Savvy today.

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, updated on July 19th, 2023       

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We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

For many Australians, being over 60 or 65 can herald an exciting new chapter in life with rich adventures and plenty of new experiences. It’s also a perfect time to consider what would happen to your family if you died or become seriously sick. If you’re in the market for some seniors’ life insurance, Savvy can help point you in the right direction.

By comparing with us, you’ll be able to consider quotes from some of the country’s top insurers to find the best one for your stage of life. You get to weigh up inclusions and exclusions, benefit limits and other features so you can get the most out of your money. Grab a quote and start comparing with Savvy now.

Can I get life insurance if I’m over 60 or 65?

Yes – many forms of life insurance are open to seniors over 60 or 65. As you ease into retirement, you're bound to spend some much-needed downtime travelling, taking quality time out with your loved ones or pursuing new hobbies. While we hope the good times last forever, it's wise to be prepared for the worst.

Life insurance companies in Australia typically allow people between 18 and 75 to purchase policies, though this age range can vary across providers, as some may limit this to those under 65 purchasing their first policy. Your life insurance policy's term is likely determined by how old you are and will expire once you reach a certain age. In most cases, life insurance covers you up to the age of 99. As such, if you are 65 now, it may be possible to get coverage up to the age of 100 and be protected for the next 35 years or more.

As you progress through various phases of life, your needs may shift, so it's crucial to assess your coverage every so often to avoid having too much or too little. Life insurance for those over 65 can be tailored to meet a wide variety of specific needs but, in general, it’s used to pay for things like:

  • Medical costs: medical bills can be a heavy burden on a spouse or family member. Life insurance can provide your beneficiaries with some financial relief once you pass away or are diagnosed with a terminal illness.
  • Funeral costs: with life insurance, your loved ones won't have to worry about paying for your burial costs out of pocket. A funeral benefit, usually expressed as a percentage of the sum insured, is often included in insurance plans. Funeral plans sold separately may also be an option.
  • Outstanding debt: it isn’t uncommon for policyholders of this age to have a big mortgage or other forms of debt, even those who are elderly.

What types of life insurance are available if I’m a senior over 60 or 65?

If you’re searching for life insurance and you’re over 60 or 65, you may have a few options to consider, including:

  • Life cover: the most common form of insurance in Australia is life cover. It can protect you up until you turn 99 and provides a payout to your loved ones if you die. Among some of its benefits are a payout if you’re diagnosed with a terminal illness and a funeral benefit which allows you an advanced payment to help cover costs related to your death.
  • Total and permanent disability (TPD) insurance: if you become totally and permanently disabled and are never able to return to work, your insurance provider will pay you a lump sum payout. It's worth noting that while the maximum entry age for this type of cover can reach up to 75 with some insurers, others may set this at 60 or 65.
  • Income protection insurance: if you become temporarily unable to work due to an injury or illness, this sort of coverage will pay up to 70% or more of your regular salary, typically on a monthly basis (provided you haven’t yet retired). However, redundancy isn’t covered by income protection insurance. While most insurers set their minimum entrance age at 60, others will cover Australians of an older age.
  • Trauma insurance: those over the age of 60 or 65 may want to consider purchasing trauma insurance either as a rider to their existing life insurance policy or as a separate policy. Up to 50 serious medical illnesses, such as heart attacks and strokes, may be covered by trauma insurance policies.

How much will my life insurance cost if I’m over 60 or 65?

Life insurance premiums can easily run into the hundreds of dollars per month once you hit your 60s. Unfortunately, there is no universally applicable answer to the question of how much life insurance costs, as each insurer evaluates applicants differently. Your premiums may increase or decrease depending on factors such as:

  • Age
  • Gender
  • Smoking status
  • Profession
  • General health and family history

According to data from Compare Club, if you’re a 50-year-old male office worker in NSW who doesn’t smoke and wanted $500,000 in life insurance cover, you’d likely pay life insurance premiums of between $46 and $72 per month. However, this increases to between $335 and $475 per month for someone aged 63 years old. If you’re over 65, you can expect your premiums to be between $400 and $500 per month.*

That’s why it pays to compare with Savvy, as we can help you consider policies from a selection of Australia’s top insurers so you can determine which is the most affordable among our panel with confidence.

*Figures correct as of April 2023, but are subject to change.

Types of life insurance

Why compare life insurance through Savvy?

Top tips for saving on life insurance if you’re over 60 or 65

Compare with us

Comparing life insurance quotes with Savvy is the quickest and easiest way to help you save. If you want to find a plan that protects your future and offers the cover you need, it's in your best interest to shop around. Life insurance offers from some of Australia's top companies are available for comparison with us, so you can choose the plan that works best for your needs and budget with more confidence.

Bundle or combine your policies

You may also save money by purchasing multiple policies from the same life insurer. You can combine traditional life insurance with total and permanent disability coverage or income replacement insurance, for instance, with some insurance providers offering reductions of up to 5%. Another option is to purchase a joint life insurance policy with your partner, rather than buy two separate ones.

Pay your premium annually

If you pay for an entire year of insurance coverage at once rather than making monthly payments, you may be eligible for a discount from some providers. A single annual payment can save you up to 9% on your policy, plus any administrative and transaction fees, compared to making payments every month.

Assess your lifestyle

The cost of your life insurance policy can go down if you make healthy lifestyle changes like giving up smoking, cutting back on alcohol and increasing your physical fitness. Quitting smoking alone can often result in your premiums being halved if you can remain smoke-free for 12 months or more. When calculating premiums, insurers consider the risks connected with each policyholder. This means that your current and past health status might have a significant impact on your premiums.

Frequently asked questions about life insurance for over 60s and 65s

Can I get a couples’ life insurance policy if I’m over 60 or 65?

Yes – you can purchase couples’ life insurance so long as you and your partner or spouse are both within the age limits. Combining life insurance policies rather than taking out individual ones can be less fuss. However, where there’s a large age difference between partners or one person has a pre-existing health condition that the other does not, it may be best to get two different policies.

Can my children receive my payout if I pass away?

Yes – a life insurance payment can be earmarked for your children. To collect the payment upon your death, your child usually must be at least 18 years old. If not, a legal guardian will act as trustee and hold the funds in trust until the minor reaches legal age.

Will I need to undertake a medical test to be covered?

Not necessarily – you can purchase life insurance without taking a medical exam. While this often means the application process is faster and your claims are generally approved quicker, you may not get as much coverage by going with a no-medical check policy.

Do these types of policies come with waiting periods?

Yes – policy waiting periods usually last anywhere between two weeks and two years. It’s best to compare these to ensure it suits your needs.

What’s the difference between term and whole of life insurance policies?

Term policies provide protection for a certain period, usually between ten and 30 years, whereas whole of life policies remain in effect for the policyholder's whole life. However, if you haven't already done so, you can no longer get whole life insurance in Australia, meaning term insurance will be your only available option when it comes to life cover.

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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.