During a person’s life they will require life insurance for different reasons.  For a young single they may simply need a small policy to cover a few debts, and for a family they may require a larger policy to cover the mortgage and ongoing family expenses.

Seniors have a variety of reasons for needing life insurance.  Some will choose a small policy to cover their funeral expenses, some will require a larger amount to provide a financial buffer for their living partner, and in some cases more complex structures are required for estate planning.

Whatever your reasons are for needing life insurance, your age should not mean that you cannot obtain the appropriate cover.

What is the maximum age for life insurance?

Most life insurance policies have an expiry age of 99.  This means that as long as you keep paying the premiums, the insurer will agree to cover you until you reach 99 years of age.  Once you reach this age the policy will expire and no benefit will be paid.

There are some policies with lower expiry ages and some that are higher, so if you are planning on keeping your life insurance policy for a long time it is worth checking this with any policies you are considering.

Although the expiry age for many seniors life insurance policies is 99, most policies will have an entry age limit that comes in much earlier.

Maximum entry age for life insurance

Most insurance companies will have a maximum age limit for seniors taking out a new policy.  This doesn’t affect existing policies holders, but if you are planning on taking out a life insurance policy later in life, you need to be aware of the entry age requirements.

The maximum entry age for most Australian life insurance policies is between 65 and 70 years of age.

As with most life insurance features, the maximum entry age can vary from one insurance company to the next.  If you have passed the maximum entry age for one insurer, it is worth shopping around as you may still be eligible for a life insurance policy issued by a different insurer.

Medical requirements for seniors life insurance

As we get older our risk of suffering a serious or life threatening illness increases.  For this reason insurers may require that blood tests or a medical exam is undertaken once you have reached a certain age and are applying for a new life insurance policy.

The requirements do vary between the insurers, and they can also vary depending on the amount of cover you are applying for.  Generally the older you are or the more cover you are applying for, the greater the chance that the insurer will impose medical requirements.

Funeral insurance

A common alternative to life insurance for seniors is funeral insurance.

The application requirements for funeral insurance are generally lower, particularly when it comes to medicals, however the cover will often be more expensive than life insurance.

If you are still in good health and have a good medical history, life insurance can be a better alternative to funeral insurance for seniors.