Can I Buy Life Insurance for my Parents in Australia?

Many adults consider taking out or helping parents take out life insurance, particularly as their parents age, face health concerns, or rely on them to navigate the health system and insurance options due to various reasons such as language barriers, cognitive difficulties, hearing and sight decline or lack of familiarity with technology.

According to the AIHW, there are an estimated 4.2 million Australians aged 65 and over, representing 16% of the population. As the population continues to age, more families are reviewing how to manage end-of-life expenses, medical costs, and broader financial responsibilities.

While it is possible to help your parents to take out life insurance, your parent or parents will need to complete the application questions and agree to all declarations themselves.

In this guide, we explain how age, health, and policy requirements affect life insurance options, and what to consider before applying.

Key takeaways

• You can buy life insurance for your parents, but they must complete the application, give consent and meet eligibility requirements.
• You’ll need to demonstrate insurable interest, meaning there must be a legitimate financial relationship between you and your parent.
• Your parent is usually the insured, while you may be the policy owner and/or premium payer.
• Age limits and health conditions can significantly affect eligibility and premiums.
• Fully underwritten policies provide greater certainty at claim time compared to partially underwritten options.
• Alternatives such as smaller cover amounts or broader financial planning may be worth considering if your parents are not approved for the cover  they need.

Buying life insurance for your parents 

Whether you can purchase life insurance for your parents depends on several factors, including their consent, eligibility, and your financial relationship with them.

Your parents’ knowledge and consent

You cannot take out a life insurance policy on someone without their knowledge. Your parent must:

• Participate in the underwriting process (including answering application questions)
• Provide consents

Life insurance is a legal contract, and insurers require the life insured to agree to the cover.

There are many ways an insurer can help your parent complete the application. If there are language barriers, the insurer can usually help the applicant to complete the application, using a translator service. Alternatively, if there are technology constraints, the application can be completed over the phone with the assistance of a sales consultant.

However, if there are cognitive issues and your parent cannot understand what they are agreeing to or able to complete the application, it is unlikely that the insurer can continue with the application.

Insurable interest

When helping buy life insurance for your parents, insurers may also require you to demonstrate insurable interest – meaning you would suffer a financial loss if your parent passed away.

We explain this in more detail below.

Understanding roles 

In many cases:

• Your parent will be the life insured
• You may be the policy owner
• You may also pay the premiums

Understanding these roles is important because each one carries different rights and responsibilities under the policy.

The life insured is the person whose life is covered. Their age, health, and lifestyle are used to assess eligibility and calculate premiums. They must consent to the cover and provide accurate information in the application process.

The policy owner controls the policy. This person can make changes, update beneficiaries, increase or reduce cover (subject to terms), and cancel the policy. Note: increases are subject to an up-to-date application which is completed by the life insured and the subsequent full underwriting process. If you are the policy owner, you are legally responsible for maintaining the policy, even though the cover relates to your parents’ lives.

The person who pays the premiums is responsible for keeping payments up to date, so the cover remains in force. It does not have to be the life insured and is often the policy owner.

Clarifying these roles upfront helps avoid misunderstandings later, particularly around who can make decisions about the policy and who receives the benefit if a claim is paid.

If your parents are older, eligibility may be more limited. You can read more in NobleOak’s guide to life insurance for seniors.

What does “insurable interest” mean when buying life insurance? 

When buying life insurance for your parents, you may have to demonstrate “insurable interest”.

Insurable interest means there is a legitimate financial connection between you and your parents.

Insurers need to understand:

• Whether you depend on your parent financially
• Whether you would incur financial loss if they passed away
• The nature of the financial relationship

Insurable interest may exist where there is a genuine financial connection between you and your parent. For example, this could include sharing financial responsibilities such as a mortgage, relying on their income for support, or expecting to cover funeral or estate-related expenses if they pass away. In these situations, their death could result in a measurable financial impact, which is what insurers assess when determining insurable interest.

If you are financially independent and there are no shared liabilities or dependencies, demonstrating insurable interest may be more complex.

Before applying, it’s worth reviewing important considerations before applying for life insurance.

What types of life insurance can parents apply for?

If you’re looking to get life insurance for your parents, it’s helpful to understand the types of cover available. Depending on your parent’s age, employment status, and health, you may apply for cover that provides financial support in the event of:

• Death or terminal illness
• Critical illness
• Total and permanent disability
• Temporary inability to work due to illness or injury

Below is a summary of the main types of cover offered by NobleOak and how each may be relevant at different life stages:

Type of insurance	What it covers	Who it may be suitable for	Key considerations
Life insurance (Commonly referred to as Life cover)	Provides a lump sum payment if the life insured passes away or is diagnosed with a terminal illness	Parents who want to help financially protect their family and/or cover final and ongoing expenses	Age limits, health requirements, and premium costs. On average, only people under the age of 75 can apply
Trauma insurance	Provides a lump sum payment following diagnosis of a specified serious illness or injury	Parents concerned about the financial impact of a serious medical event	Medical definitions and eligibility apply. On average, only people under the age of 60 can apply
TPD insurance	Provides a lump sum payment if the life insured becomes totally and permanently disabled	Parents wanting financial support if they are unable to work again due to disability	Often linked to ability to work and medical assessment. On average, only people under the age 60 can apply
Income protection insurance	Provides regular payments if the life insured is temporarily unable to work due to illness or injury	Working parents who rely on ongoing income	Waiting periods, benefit periods, and employment status. On average, only people under the age of 60 can apply

Who owns the policy and who pays the premiums?  

When arranging life insurance for a parent, it’s important to understand the different roles within a policy. The life insured is your parent – their age, health, and lifestyle determine eligibility and premiums, and they must provide consent to the cover. The policy owner controls the policy and can make changes, nominate beneficiaries or cancel the cover. The beneficiary is the person or entity who receives the payout if a claim is approved. While you may be able to pay the premiums, your parent will have to participate fully in the application process, including providing medical information.

Age limits and eligibility for life insurance for parents 

Age plays a significant role in determining whether your parent can take out a new life insurance policy, what type of cover may be available, and how much it will cost.

Why eligibility becomes more limited with age

Life insurance premiums and eligibility are based on risk. As people get older, the statistical likelihood of death or illness increases, chronic health conditions become more common, and recovery from illness or injury may take longer. Because of this, insurers often reduce the types of cover available at older ages or apply stricter underwriting requirements.

Maximum entry ages

Most life insurance products have a maximum entry age, which is the oldest age at which someone can apply for new cover. This varies by insurer and product type. For example:

• Life insurance may have a higher maximum entry age than TPD or income protection
• Income protection is usually limited to people who are still working
• Trauma and TPD cover may have lower entry age limits than standard life cover

Once your parent passes the maximum entry age, new cover generally cannot be taken out.

How age affects premiums

Premiums are calculated using age at entry, along with other factors including health, smoking status, occupation, lifestyle and the amount of cover selected. The older your parents are when they apply, the higher the premium is likely to be. Even a difference of a few years can affect the cost of long-term cover.

Why timing matters

If your parent is eligible and considering cover, applying earlier rather than later may:

• Provide access to a broader range of products
• Reduce initial first year premium costs compared to applying at an older age
• Lock in cover before potential health changes occur

For families considering life insurance for dad, mum, or multiple parents, understanding age limits early can help set realistic expectations around availability and affordability.

Will your parents need to complete a medical assessment?

Your parent will usually have to answer detailed health and lifestyle questions as part of the underwriting process. This may include information about:

• Past and current medical conditions
• Medications and ongoing treatment
• Smoking and alcohol use
• Height, weight and general health history
• Family medical history

Depending on their age, the amount of cover requested and their medical disclosures, the insurer may also request a medical examination, blood test, or report from their GP. These assessments help the insurer accurately evaluate risk and determine eligibility, premium rates, and any potential exclusions.

Benefits of underwriting

While some life insurers offer simplified or partially underwritten applications with fewer upfront medical questions, this convenience can come with trade-offs. These types of policies may not fully assess your parent’s health at the time of application. Instead, certain medical checks may be deferred until a claim is made and then potentially the claim may not be accepted when it is needed the most.

Fully underwritten cover, on the other hand, involves a more detailed medical assessment during the application process. The insurer reviews health disclosures, and where required, medical reports or tests before the policy is issued. This means any loadings, exclusions, or special terms are made clear from the outset – so you and your parent can have more certainty about what is covered.

You can read more about what to expect during the process in NobleOak’s guide to life insurance medical examinations.

Helping a parent through the application process often means gathering accurate medical history in advance and ensuring all information is disclosed fully and honestly, as non-disclosure can affect future claims.

What happens if your parents already have health conditions? 

If your parent has a pre-existing medical condition, it doesn’t automatically mean they can’t obtain life insurance. However, it can affect how the insurer assesses the application and the terms offered.

During underwriting, insurers consider factors such as:

• The type of condition
• When it was diagnosed
• How it is being managed
• Whether there have been complications or hospitalisations
• Current test results or specialist reports

Based on this assessment, several outcomes are possible:

Eligibility

Some medical conditions may limit access to certain types of cover. For example, income protection or trauma insurance may be more restricted than standard life insurance. In some cases, an insurer may decline an application if the risk is considered too high.

Premium loadings

If the application is accepted, the insurer may apply a premium loading. This means the base premium is increased to reflect the higher assessed risk. The percentage increase varies depending on the condition and its severity.

Exclusions

In some cases, the insurer may offer cover with a specific exclusion. This means claims arising directly from that condition (or related complications) would not be payable, while other unrelated claims may still be covered.

Why full disclosure matters

It’s essential that all medical information is disclosed during the application process. Non-disclosure, even if unintentional can affect the outcome of a future claim.

Each insurer assesses medical history individually, which means outcomes can vary depending on the condition and overall health profile. You can read more about how this works in NobleOak’s guide to life insurance with pre-existing conditions.

What are the alternatives if you can’t get life insurance for your parents? 

If eligibility is limited due to age or health, there are alternatives to consider.

These may include:

• Applying for a different type of cover e, g. they may still be eligible for Life cover even if they are ineligible for Income Protection
• Planning specifically for funeral and final expenses
• Reviewing broader retirement and estate planning arrangements

NobleOak’s Senior Underwriter, Joanne Sinclair explains:

“While not every parent will meet eligibility criteria for new life insurance cover, families can still take practical steps to prepare for future financial responsibilities. Early conversations and clear financial planning can make a significant difference.”

You may also find helpful information through:

• Services Australia’s guide to financial services when thinking about retirement
• ASIC’s MoneySmart resource on getting help in retirement
• My Aged Care’s information on financial support and advice

Start a quote for award-winning life insurance

If you’re considering buying life insurance for your parents, the first step is understanding what options may be available based on their age and health.

You can explore award-winning cover through NobleOak’s life insurance page or start a quote directly using the online quote tool.

Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.