Does Life Insurance Continue After Retirement
Life insurance is designed help you secure your or your family’s financial future, if you were to pass away or suffer from a terminal illness.
As you get older, you might be thinking about your family’s outlook, and you might have to keep a tight budget as you may be on limited savings.
Having peace of mind can help you get on with living your best life.
If you’re worried about what life’s later stages can bring, it’s not too late to look into life insurance.
Many Australian insurance companies make it difficult for older people to get affordable life insurance, but with Seniors Term Life Insurance, you can rest assured that once you are approved your family will be protected with a product designed specifically for people aged between 45–79.
In fact, you might even find that the benefits offered are of great advantage for later in life.
With Seniors Term Life Insurance, you don’t need complex medical assessing, blood tests or other medical checks to apply, you simply answer just eight health questions over the phone. There’s no complicated paperwork either.
As we near retirement, many of us find that our needs and financial plans can change quite a lot.
Whether it’s helping our adult children get a financial head start, or even treating ourselves to the comfortable lifestyle that we’ve worked hard for, our financial commitments don’t just disappear over the years.
It can be a good idea to have a contingency plan in place, to help our family keep up with everyday bills or immediate expenses if we suddenly passed away.
Life insurance for older Australians works just like any other policy.
If you pass away or are diagnosed with a terminal illness, you or your family will receive a lump-sum payout. The money can be used to help with living costs or any other potential challenges that might come up, such as funeral or estate fees.
Different types of life insurance
Before looking for the best policy, it’s important to first understand the differences between the types of life insurances available in the market.
Term life insurance is a type of insurance policy that covers you for a set period of time (or until you reach a certain age).
You are able to choose a policy with a term to suit you, for example, choosing one that expires after ten years, 20 years, or once you reach a certain age, for example.
Term life insurance can be a good way to make sure you and your loved ones are financially protected during certain stages of your life.
Some life insurance products guarantee to remain in force for the insured’s entire lifetime, however, many older people find that this type of insurance can be difficult, or even impossible to apply for once you are in your 60s, as there are generally lower entry age requirements and more substantial health and lifestyle questions.
Group life insurance is often available through your superannuation, depending on your particular fund. It is often not tailored to your specific needs or budget as your employer/super fund purchases a single contract where multiple people are insured, those being the fund’s members.
If you have retired and already received your super, reached retirement age, or if you have been out of the workforce for more than six months, your group life insurance may lapse.
Which life insurance could be suitable for older Australians?
The best policy for your individual needs depends on what exactly you want to be covered for and how much you think you or your family would need if something unexpected happened, which is why it is a personal decision. It’s also important to consider your age and future plans. If you’re retired (or hoping to jump on board soon) and no longer have dependent children, you may only need cover for a shorter period of time. You may consider choosing a term life insurance policy in that case; as some insurers make it easy, allowing you to apply quickly over the phone with no blood tests or medicals required.
You can also consider a term life insurance policy to add extra coverage if you feel you may be underinsured with your current cover, but it’s important to understand any limitations when claiming on more than one policy with the same insurer.
However, we all have our own plans and financial needs that should be taken into account.