Life Insurance for Over 50s in Australia
1 Mar 2025 • General Knowledge
Why Adviser-Quality Cover Beats Seniors or Funeral Insurance
Compare Adviser-Quality Life Insurance Now →As we move into our 50s and beyond, many Australians start thinking seriously about life insurance. Whether it's to clear debts, support loved ones, or simply have peace of mind, having the right policy matters more than ever.
But not all insurance is created equal - especially if you're comparing what's marketed directly to over-50s (think: "no medical," "guaranteed acceptance") versus adviser-quality life insurance.
🚨 The Rise of Seniors & Funeral Insurance - and Why You Should Be Cautious
Turn on the TV during the day or scroll Facebook, and you'll be bombarded with offers for "seniors life cover" or "funeral insurance". These products are sold direct to consumers, usually with:
- ⚠️No medical checks
- ⚠️Guaranteed acceptance
- ⚠️Fast, over-the-phone sign-up
Sounds convenient - but here's the catch.
The 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovered major issues with these products:
- ❌Low payout ratios - Only ~33% of premiums were paid out in claims.
- ❌Sky-high cancellation rates - Over 80% of policies were cancelled.
- ❌Targeting vulnerable Australians - Aggressive marketing practices.
In short, the Royal Commission found that many of these policies were considered "junk insurance" high on marketing, low on actual value.
Whilst there has been a lot of regulatory change since the royal commission findings to improve these things, these products still represent a high cost for low cover (see below).
✅ Adviser-Quality Life Insurance: What Makes It Better?
Adviser-quality life insurance is the kind traditionally accessed only through a financial adviser. It's more comprehensive, underwritten up front (not at claim time), and tailored to your life stage and needs. And because of this, they are generally significantly better value than direct products.
And, thanks to digital platforms like ours, you can now access these same high-quality products without going through a traditional adviser or paying ongoing advice fees.
Real Cover for Real Needs
Funeral insurance often only pays $5,000-$15,000. Adviser-quality life insurance starts at $50,000 and can go into the millions - enough to pay off a mortgage, protect dependents, or preserve your estate.
Medical Underwriting (Yes, It's a Good Thing)
Upfront underwriting means your policy is assessed and locked in when you buy it - reducing the risk of disputes or delays later.
Compare that to “guaranteed acceptance” seniors insurance, where a component of underwriting happens at claim time. This is why claims denial rates are higher for guaranteed acceptance products, and this occurs at the worst possible time your loved ones.
Level Premiums = Predictable Costs
Most seniors cover has stepped premiums - they increase every year. Adviser-quality products also offer level premium options, allowing you to select the premium option which suits you the most.
Built-In Benefits
Adviser-grade policies often include:
- ✔️ Terminal illness payouts
- ✔️ Funeral advancement benefits
- ✔️ Financial advice services
- ✔️ Grief counselling
Guidance Without the Full-Fee Model
Our platform lets you access these adviser-quality products online, in your own time. We collect, and in some cases return, a large portion of the adviser commissions.
💰 Let's Talk Numbers: What's the Cost Comparison?
Here is an example using a male, non-smoker, age 56 in a clerical job.
Note:Prices vary based on age, health, and sum insured selected.
| Policy Type | Avg. Annual Premium | Example Cover |
|---|---|---|
| Adviser-Quality Life Insurance | $365 | $100,000 |
| Direct Insurance | $625 | $100,000 |
| Funeral Insurance | $736 | $10,000 |
📊 Hard Data from the Regulator: APRA Claim Stats
According to the Australian Prudential Regulation Authority (APRA):
Adviser-Quality Life Insurance
have a higher claims acceptance rate of 96.9%.
Adviser Led Insurance is processed faster
1.5 months average processing time.
Direct Policies
Only 91.1% claims acceptance rate.
More Disputes
Direct and funeral policies face more disputes due to confusing terms & fine print.
So, Who's It Right For?
Adviser-quality life insurance is ideal for Australians over 50 who:
- Want comprehensive cover
- Are in reasonably good health
- Still have financial responsibilities
- Want to leave a legacy or cover estate costs
Final Word: Don't Settle for “Easy” If It's Not Better
It's tempting to take the “guaranteed acceptance” route. But easy doesn't mean better - especially when it comes to life insurance.
Before locking in a policy that might fall short when it matters most, consider adviser-quality life insurance. You get more meaningful protection, better claims support, and potentially more money returned to you.