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Insurance for 50 to 60 Year Olds

Your fifties are when things start to slow down. The kids have probably finished up at school and are thinking about moving out or have already. Your mortgage is almost payed off and there are hopefully only a few debts still to be settled.

You may think that you’re past investing in insurance, but what would happen if you or your partner became seriously ill or injured? Would you have to drain your savings to pay for treatment costs? Even as you move towards retirement, life remains unpredictable and you will still need to protect your family in the event of an emergency.

Types of insurance to consider


Life Cover

Even though your children may no longer depend on you, would there be any debts left for them to settle if you were to pass away? Have you got a legacy to leave behind for your children and grandchildren?

While you may not think you need it, Life Cover is an important investment to ensure you and your family are protected in the event of your death. Life Cover will provide your beneficiaries with a lump sum payment if you died. You can buy life cover up until 75 years of age.

To save on the costs of hefty life cover policies (which can be higher if you’re above 50 years old), you may want to consider Couples or Family Life Insurance. Buying a policy to cover multiple people will lower the premiums, sometimes with a discount of up to a 10%.


Income Protection Insurance

While you may be winding down the hours at work or stepping away from some of your responsibilities, if you’re in your fifties, it’s likely you’ll still be in the work force for another decade. You don’t know what’s going to happen to you over the next ten years, but if you were unable to work, how would you, your partner and your family cope?

Income Protection will provide regular payments of up to 75% of your income if you are unable to work due to injury or illness. You cannot purchase Income Protection insurance after 59 years of age, so it’s important you act quickly to protect you and your family. Income Protection policies expire at an agreed age, generally 65 to 70 years old.

Learn more about Income Protection.


Trauma Insurance

As you get older, your health becomes more of a priority, since as your body inevitably ages, your health can deteriorate.

If you’re be diagnosed with a life-threatening illness, would you and your family be able to support the costs of your medication and treatment? Trauma insurance provides you with a lump sum payment if you’re diagnosed with a serious illness, providing much needed support and financial peace of mind at a time when you and your family need it most.

You can purchase a Trauma insurance policy until 65 years of age, although policy expiries can vary.

Learn more about Trauma insurance.

Funeral insurance/advanced payments

When purchasing Life Cover, you should check your policy for funeral insurance or the option of an advanced payment following your death. You can buy funeral insurance separate from your Life Cover, but many policies an advanced payment option, which is a portion of your cover paid out to your beneficiaries immediately to cover the costs of arranging your funeral.

If you already have Life Cover and are not sure if you have an advanced payment option, contact a Wealth Smart expert today who can advise you on your policy and your options.

Can I be refused?

Unfortunately, as you get older you become a higher risk for insurance companies and they can refuse your application for insurance. Don’t be discouraged if you’re refused the policy you want.

If you’d like to buy an insurance policy, we recommend you contact one of our Wealth Smart advisors. They can help you put together your application, and will find the best policies for you at a competitive price.

Page last updated: January 23, 2015