How Does Your Age Play a Role in Your Premiums?

Buying in early adulthood often results in the lowest premiums on Life cover. Insurance companies consider these applicants healthier and with a lower risk of dying in the near term. Therefore, companies generally charge less for Life Insurance cover for those who are younger.

Later adulthood is when things change. Between the ages of 35 to 55, chances are you have extra financial obligations. This may also mean that you might choose to insure a larger sum to leave to your beneficiaries. Thus, the premiums often grow as your cover accommodates your growing needs.

Pre-retirement age is between 55 and 65 in Australia. It’s also an age at which many people consider buying Life Insurance. But starting at this later stage in life can seriously impact your premiums.

Starting your Life Insurance policy after the age of 65 is not always ideal. Premiums are generally the highest in this age group. That’s mostly because the remaining life expectancy of the policyholder is increasingly lower. Keep in mind that there is also typically a maximum entry age for life cover – for example, age 69 is a common upper limit beyond which you won’t be eligible for life insurance cover. 

But that doesn’t mean that you can’t think of Life cover later in life too. By this point, many people have some savings and fewer financial obligations. Therefore, you can reduce the overall cost of insurance by taking on a lower insured amount. 

When considering Life Insurance it’s essential to analyse your finances. Know how much money you’ve saved already. Know how much debt you have and how much your family members would have should you no longer be around. Perhaps they’ll need help with your children’s education expenses, for example.

These factors can help you determine if Life Insurance cover makes sense for you and help you think about how much cover you might need. 

Life Insurance Can Help You Prepare for the Inevitable

Not everyone gets ​Life Insurance for the same reasons, or at the same age. But purchasing cover is one way to help provide for your loved ones, after you pass. 

And even though the idea of Life cover seems simple enough, there’s a lot to learn before choosing a policy. From understanding how premiums work to reviewing different insurers and products, and other related issues.

Do you need Life Insurance?

That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs. You should carefully consider the Product Disclosure Statement before making a decision on a life insurance product.

To get a quote for cover, visit NobleOak’s website for IPA members or call one of NobleOak’s friendly team members on 1300 041 494 and mention ‘IPA’. 

Important information – The Target Market Determination for NobleOak’s Premium Life Direct insurance is available on our website www.nobleoak.com.au/target-market-determination

NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 issues the products. This information is of a general nature only and does not take into consideration your objectives, financial situation or needs. Always consider the Product Disclosure Statement (PDS) (available on our website) to see if the product is right for you.