Life insurance is a need that not most people recognise or believe they can afford. Ideally, everyone should get life insurance as young as possible while they are at their healthiest. This is because you can never guess when you might need it in life. But can you ever be too old to get life insurance?
According to research commissioned by TAL, only around half of all Australians hold some form of life insurance, and many are under-insured.1
Purchasing personal insurance is often an uncomfortable subject for people as it means accepting that we are all not bullet-proof. However, life is full of uncertainty. Injury, illness or death in a family create substantial financial and emotional strain. It is better to be prepared and protected for life’s uncertainties so you can have peace of mind that your family and future are secure.
Why Is Life Insurance Important?
In this article, we refer to life insurance as holistically covering Term Life Insurance, Total and Permanent Disability Insurance, Trauma Insurance and Income Protection Insurance. If you ever become seriously ill or injured, life insurance can ease the burden of the costs of getting treated and also provide for living expenses so you can focus on your recovery. In the worst-case scenario where you may pass away, personal insurance can cover funeral costs and any other bills left behind for your next of kin to manage.
This is why life insurance is so important – it can make it easier for you and/or your loved ones when things become difficult. Without it, not only is there the stress and negative impact brought on by whatever incident but also financial burdens. It is essential to understand the different types of personal insurance available, how they work together, how policies differ, and how they pay out a claim.
Why Do We Need to Get Life Insurance at an Early Age?
Many life insurance policies have an age limit to them. Additionally, some insurance policies may have higher-priced premiums the older you start with them. This is why it is crucial to start life insurance as early as you can. Parents even have the option to get life insurance for their kids to help them get it started – this is typically in the form of Trauma Cover and/or Death Cover.
Age, gender and health are assessed when taking out a policy, so as younger people are typically in better health the costs will be less and more beneficial policy terms will be available to you. As you get older and become more susceptible to diseases, your policies will cost more.
What Age Can You No Longer Apply for Insurance Cover?
In Australia, life insurers typically have a cut-off age for new life insurance customers. Once you pass this age threshold, you are no longer able to apply for that cover.
The following summarises the typical expiry date for insurance cover:
- Life Insurance: 99 years old
- Total and Permanent Disability Insurance: 65 years old
- Trauma Insurance: 70 years old
- Income Protection Insurance: 70 years old
Owning Life Insurance Cover
Life insurance is something that is essential for everyone to have. This means that you should get it as early as possible in life. Consider the alternatives and the risks of not having personal insurance at all. Suppose you are too old for life insurance. In that case, there are still other options for you to consider such as health insurance and funeral insurance which can subsidise some expenses should you suffer an illness, injury or death.
For life insurance advice on the Central Coast, you can contact Central Coast Financial Planning Group. Our insurance experts will gladly help you protect your income and assets and can assist you in making sound financial decisions for your family. Call us or book online to secure your complimentary first meeting with our advice team today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.