After decades of working and saving, building a family, or building a career, you and your loved one can finally enjoy retirement and the golden years. While there is so much more to explore in this new era of your lifetime, it’s important to make sure that you have insurance coverage to protect you in all walks of life. One important safety net to have in place is life insurance to make sure that your loved ones are cared for, or to potentially help you in the here and now. Let’s take a closer look at what life insurers have to offer senior Australians like you.
Types of Life Insurance Policies
When shopping for the best life insurance policies, it’s important to know what each type of policy entails. For example, life cover, also known as term life insurance, is a policy that pays a set lump sum when you pass away. That money is distributed to your nominated beneficiaries. Life cover is considered ‘guaranteed renewable’, which means you’ll generally only stop being covered if you stop premium payments on the policy, or if you reach a certain age excluded under coverage.
There’s also income protection life insurance. Also known as salary continuance, income protection coverage is designed to help you and your family members manage expenses if you’re unable to work for a certain period of time as a result of illness or injury. Trauma cover, also known as critical illness life insurance coverage, provides a certain coverage amount when you’ve suffered a serious illness that makes it impossible for you to continue work. Also known as recovery insurance, it can provide financial stability during uncertain times.
Finally, there’s total and permanent disability coverage, also known as TPD. This insurance coverage provides protection if you’re permanently disabled and unlikely to return to work. This policy can cover the cost of rehabilitation, debt repayment, and the future cost of living. Be sure to check the terms and conditions of any life insurance policy before signing on board to better assess coverage options.
Remember, you should fully understand the life insurance product that you are purchasing before you sign on the dotted line. Insured parties should always read the product disclosure statement you’re reviewing. This contains all of the important information to allow you to determine which type of insurance is right for you. When comparing policies, be sure to understand the life insurance cover like term insurance or TPD, as well as the level of cover.
You’ll also need to keep in mind the inclusions and exclusions of a life insurance policy, and how pre-existing medical conditions can impact certain medical costs. Health status could have implications for the ongoing cost of cover, particularly if you have been diagnosed with a terminal illness. Be sure to avoid any shortcuts when it comes to medical details, as this could end up costing you down the line in an application process.
What could impact insurance premiums?
When it comes to life insurance, the cheapest option in terms of monthly premiums may not always be the cheapest option down the line. This could be because of additional fees, limits, and conditions to take into consideration. If you’re in the market for a new life insurance policy, the Australian government recommends some factors to keep in mind like your monthly expenses outside of insurance policies, as well as your savings in the case that certain life events may spring up out of nowhere.
Be sure to consider your health status and the different needs of your family at this moment in time. You may want to consider individual life insurance policies for all of your family members, which will see higher life insurance rates for the entire family. Age is also impacting competitive rates.