Older Australians Less Likely To Have Life Insurance

New research has revealed that older Australians continue to be least likely to have Life/Death cover.

The 2018 NobleOak Life Insurance Survey found 53% of older Australians, aged 55 – 60, are likely to have Life/Death cover compared to 30-34 year-olds (72%) and 35-44 year-olds (68%).

The survey of more than a thousand people also discovered Baby Boomers are least likely to have Total and Permanent Disability Insurance (TPD), with the survey revealing just 37% of 55- 60 year-olds are likely to be covered, considerably less than 30- 34 year-olds (47%), 35- 44 year-olds (53%).

These trends are concerning to see as Life Insurance provides a lump sum payment upon death to help clear debts and to help family members.

According to the AIHW older Australians are more likely to continue working after age 65. In addition the number of older households without a mortgage has fallen to 71% in 2011, from 78% in 2002.

As the population of Australia ages and people’s working life is extended it is even more important for older people to have some form of cover.  You may have debts to manage, or adult children who still need financial support. Life insurance can provide financial assistance to help eliminate debt and support for loved ones if you die or become terminally ill.

For many reasons the amount and type of Life Insurance needed changes as we move through various life stages. The need for Life insurance is more apparent in our 30s and 40s when achieving milestones such as buying a house or starting a family is a prompt to consider how to provide ongoing financial protection for you and your family.

However, towards our 60s the need for Life insurance may no longer seem as necessary as we might not need to cover the same risks or expenses, such as mortgage repayments and children’s education. So is there a need for Life insurance in your 60s?

Nearing retirement we all hope for our life plans to have eventuated, but what happens when the reality may not be as we expected? What would happen if you suffered a sudden health crisis and you still have financial responsibilities? Having Life Insurance in place can provide you with that added sense of security that, regardless of what life throws at you, there is a safety net to help you through uncertain times.

Not sure what type of cover you need?

NobleOak has made it easier for you to work out what type of Life Insurance cover you need with our online Life Insurance Calculator.

This simple, easy to use calculator covers Life Insurance, Total and Permanent Disability Insurance, Trauma and Income Protection Insurance and gives you a personalised report via email at the end. It only takes 10-15mins to complete. And it’s free!

 

Source:

Research conducted by Pureprofile in December 2018 with 1,043 Australian respondents.

AIHW Older Australians at a Glance

Margaret Rochford

18 February 2019 - 5 minute read