Entering Retirement? The Key Reasons Why Life Insurance Still Matters for Seniors
July 26, 2022

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Life Insurance for Seniors

Being a senior citizen is something to celebrate. It’s the time when you can give yourself over to your passions and pursue the fundamental joys of life.

Over the years, you’ve worked hard to secure a sound financial standing to help look after you in retirement. Perhaps your debts and liabilities have decreased. The kids have moved out of home and your costs of living are cheaper.

You may believe that Life Insurance no longer matters. But that’s simply not that case. Here are some of the key reasons Life Insurance can be relevant to you even as you grow older.

elderly man
Closeup portrait of a senior man sitting with his daughter and grandson

You’re bound to live and work longer

Thanks to improved lifestyle habits and innovations in medical technology, humans are living longer than ever before. But we work longer as well – the retirement age in Australia has now risen to 70 years old.

And let’s face it. When you’re older you don’t bounce back from illnesses and injuries like you used to. Plus your risk of contracting a serious illness or injury is much higher than it was when you were young.

Have you thought about what would happen if you became so seriously ill or injured that you could no longer work? If you weren’t earning an income, would you still be able to protect your assets and your way of life?

You’ve worked so hard to accrue savings for your retirement that it would be a shame to have to dig into them early simply to cover groceries and bills.

This is where Life Insurance can help. One type of Life Insurance, Income Protection insurance, ensures that up to 75% of your income will be covered in the event that you’re unable to work because of serious illness or injury.

That means you can cover most of the costs of living without having to delve into those hard-earned savings.

You’ll want to leave an inheritance

If you’re lucky, you’ll have paid off most of your debts and liabilities as you come to the end of your working life and enter retirement. But if for some reason you still have debts, it’s worth remembering that someone will have to pay those debts off when you die.

You may want to leave an inheritance to your loved ones, as a final gift to them from you. But don’t forget that if you do leave a legacy, it may be diminished somewhat if you’ve left debts behind that need paying off.

With Life Cover, your beneficiaries will receive a lump sum payment of up to $1 million or more in the event of your death (or diagnosis of a terminal illness). They can use that money to pay off any accumulated debts, so your legacy to them remains untouched.

Help with funeral costs

Even if you’re living a debt-free existence, there are still costs your loved ones will have to manage in the event of your death. The most important of these costs is your funeral.

Funerals aren’t cheap. According to MoneySmart, funerals cost between $4,000 and $15,000, depending on their level of simplicity.

With a Life Insurance policy, you can get funeral benefits that will cover the cost of your funeral so your loved ones needn’t worry about overspending.

Help cover medical costs

We’re able to live with disabilities and poor health longer than we used to. But if you contract a serious illness or injury, there are a host of additional medical expenses that may prove a financial burden.

You might have to modify your home to install ramps or extra safety features. Perhaps you’ll need a trained professional to give you in-home assistance. And then of course there are ongoing medical needs associated with treatments.

With Trauma or Total and Permanent Disability (TPD) insurance, you can receive a lump sum payment to help cover medical costs while you’re down, further protecting your savings. Keep in mind with many trauma and TPD insurance policies, you must be under 60 to apply.

Is it worth it?

It’s worth noting that the older you are, the higher your premiums are likely to be. This is because you also have higher health risks related to your age. On the other hand, you’ll probably need less cover than when you were younger and trying to pay off a mortgage and other debts, so you can lower your premiums accordingly.

The peace of mind that comes with knowing that you’ll be taken care of no matter your circumstances cannot be underestimated. Being financially secure during one of the most trying times in your life is priceless. And providing financial security to your loved ones when you’re gone is arguably one of the best gifts you can give them.

What types of Life Insurance suit a senior?

Depending on your circumstances, such as your level of savings and whether you’ve retired, these Life Insurance products may be relevant to you:

If you’re unsure what kind of Life Insurance policy best suits your needs, consult an insurance adviser today. Wealth Smart can ensure that your policy is tailored to your personal circumstances, so you can get the most out of your policy – and your life! – today. Contact us now.

Find out what is the best Life Insurance policy for you by downloading our FREE comprehensive Life Insurance eBook today.


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