Tips For Looking For the Best Life Insurance Policy For A 50 Year Old

Most of the time, you can get life insurance until you’re 75 and keep it until you’re 100. That’s a lot of life still for a lot of Aussies.  But why would you keep life insurance after you’re in your 50s or 60s, especially if your mortgage is paid off and your kids have moved out?

Of course, it will also make you start asking a lot of questions like, “which life insurance is best in Australia for the over 50s? Do I have life insurance in my super and is it tax deductible? Also how do I compare life cover?”

The great news is Billy Explores is here to help you answer a lot of those pointed questions. We can help you compare life cover and get the best life insurance policy for your needs from our panel of providers.


Here are reasons why people in their 50s should have the best life insurance policy for their needs:

1. Compare Life Cover When Your Circumstances Change

Your kids may have moved out, but things can always change. If they lose their jobs, go back to school, or move back home because they are getting divorced or separated, you can soon start helping them again. On top of that, you could end up taking care of your grandchildren.

This is a good reason to keep your life insurance coverage even after your kids turn 18. You could also get insurance for your kids until they are old enough to pay for it themselves.

2. Estate Under Life Insurance

The best life insurance policies can be an important way to make sure that each family member gets an equal share of the assets. If you have “lumpy” assets or run a farm or small business that only one of your children would want to take over when you die, you can use your life insurance policy to make sure that the rest of your children get an equal share.

For example, if you have two children and one of them is going to inherit a $2M business or farm, the other child could be the beneficiary of a $2M life insurance policy. If the business or asset is left to both children, one child would have to take out a $1 million loan to buy out the other child, which would be very expensive.

3. Chances Of A Claim On Your Life Insurance Policy

Death rates go up quickly after age 50. As we get older, we are more likely to get some cancers and illnesses.

For example, a in his 40s has a 1 in 1000 chance of being diagnosed with prostate cancer. This chance goes up to 12 in 1000 for a man in his 50s, 45 in 1000 for a man in his 60s, and 80 in 1000 for a man in his 70s (statistics from the Prostate Cancer Foundation of Australia).

This means that having a life insurance policy is important to ensure your loved ones are covered, even if you need to find a life insurance policy with a pre-existing condition in Australia.

4. Debts

Even though you may have paid off the mortgage on your family home, you may have borrowed money to buy other properties or investments. Even if there is some equity in these investments, they could lose a lot of value if your family had to sell them before they were ready because they couldn’t pay the debt.

If you make sure your life insurance is the best life insurance in Australia in 2022 enough to cover these debts, the original purpose of these investments, like saving for retirement or leaving an inheritance to your children, can still be met.

5. Keep Tabs On Your Health

If you are older and thinking about getting rid of your life insurance policy, make sure to get a full medical checkup first.

There are many stories about clients who cancel their policies and soon after get cancer or other serious illnesses. If you get a clean bill of health before canceling your life insurance policy, this is less likely to happen to you.

6. Cutting Back, Not Stopping

Instead of getting rid of your life insurance policy, you could reduce the amount of life insurance coverage you have over time to deal with the rising cost of stepped premiums.

When you get your renewal notice each year, you can send a signed request to the insurance company to lower your coverage. Some insurance companies have a feature called “Premium Freeze,” which automatically lowers your coverage each year to keep your premium the same. But it’s better to weigh your needs against the cost every year. That way, if your situation changes, like if you get cancer, you can keep your coverage at the same level.

If your health is good, you might also think about switching to a different life insurance provider that offers a better life insurance policy for your needs. To compare life cover through Billy Explores, click here.

7. Time To Consider Your Premium

Now that some insurers offer level premiums until age 70, you can save a lot of money if you sign up for a level premium before age 50.

If you are paying a stepped premium now and switch to a level premium, the level premium will be much higher than what you are paying at first. But because the level premium doesn’t go up over time, the coverage will still be affordable in the future, when you might need it the most and have less money.

8. You Might Not Be Able To Get The Same Life Insurance Policy And Life Cover Again

You were probably young and healthy when you first got life insurance. But if you wanted life insurance today, you might not be able to get it on the same terms.

You may have switched to a more dangerous job, like offshore drilling, or your health may have gotten worse, like if you have diabetes or are overweight. You may also have taken up a dangerous hobby (e.g. ultralight flying or gliding). If any of these things are true, you might not be able to get life insurance, or if you could, the policy might not cover everything or the premium might be very high.

If this is the case, you should keep your current life insurance policy as long as you can, not only because a new policy might cost more or have restrictions, but also because you have a higher risk profile than most people.

9. Unique Needs

Before you decide to cancel your life insurance, you should think about why you got it in the first place. It’s possible that you had a special need, like taking care of a disabled child after you died. This need probably hasn’t changed as you’ve grown up.

10. Consider Super To Pay Your Life Insurance Premiums

Many life insurers will let you pay for your policy with the money you roll over from your existing super fund each year. Your annual life insurance premium is paid for by the rollover, and your policy is held by a “life insurance only” super fund.

There are some downsides to getting your insurance through a super fund, even though it can save you money on taxes and help you with cash flow problems by letting you access your super balance. See the Pros and Cons of insurance in super and is life insurance through super tax deductible in Australia.

11. Can You Have Multiple Life Insurance Policies In Australia?

Following on from the tip about the super, it is worthwhile to ask the question if you can have multiple life insurance policies in Australia. The answer is yes you can. Billy has already created a great guide that covers this question – find out more about if you can have multiple life insurance policies in Australia here.

12. Does Life Insurance Pay For Suicidal Death In Australia?

This isn’t a very nice question to ask, however it is still important when you compare life cover, even in your 50s, does life insurance pay for suicidal death in Australia. It is almost as important as which life insurance is best in Australia! The short answer is some life insurance policies do. Billy Explores has also created a large guide about this question, so if you want to find out does life insurance pay for suicidal death in Australia, click here.

13. Get Financial Advice On Your Life Insurance 

Find the best life insurance policy for your needs, and deciding which life insurance is best in Australia shouldn’t be a decision made by yourself. Especially in your 50s as you’re generating more wealth, the best thing to do is to chat with your accountant or financial advisor about your queries and concerns. Then you can compare life cover together through Billy Explores!

14. Compare Life Cover Through Billy Explores

The best way to make sure you’re getting the best life insurance in Australia for your needs in 2022 is to compare life cover through Billy Explores. Taking the tips above into consideration, you’ll be able to explore life insurance policies and get the best value life insurance policy for your needs from our panel of life insurance providers.