Retirement Planning Essentials

Whatever you plan for your twilight years, one commonality is that most of us work hard for many years to secure a comfortable retirement so that we can life the lifestyle we’ve planned and not be a burden to our families as we get older.

Life Insurance has an enormous part to play in living the retirement you’ve long dreamed of. With adequate insurance in place, should accident, illness, or worse strike, then you and your loved ones will be protected against financial hardship.

Many of us look forward to our retirement with the freedom from work that it brings and the opportunity to follow your own path.
For some people, retirement brings the opportunity to travel – the ubiquitous “grey nomads”. For others, they may choose to spend more time on the golf course or playing tennis. Or perhaps you’re more interested in spending time in the garden, being involved in community groups or just extra time with family and friends.

Of course, everyone has different circumstances – different financial aspirations, commitment and assets.  Some are lucky enough to financially independent.  For many of us, it would be difficult for us (or our families) to meet the costs associated with protracted illness, high level care and funeral costs. 

Retiree Specific Advice

As an older person, your personal insurance needs are somewhat different to those at a younger stage of life.  In Australia, you cannot apply for Life Insurance after the age of 74 years old (ie. 75 on next birthday). People as young as 50 may find that their premiums are significantly more expensive than a younger person in comparative physical condition.  It is not just the age difference itself that affects the premium cost, but the medical conditions that are more prevalent as people age.

Factors that your Life Insurance provider will consider include:

  • Your current state of health including blood pressure, cholesterol level, weight, heart disease
  • Whether or not you smoke. 
  • Family medical history
  • Your gender (as men on average live shorter lives, their insurance premiums rise more quickly as they age).

It is also important to consider insurance to cover accident and illness, as well as life insurance.  Trauma Insurance will pay a lump sum in the event that you are diagnosed with a specific illness or suffer a serious accident.  This tax free payment can be invaluable to help fund the costs of things such as making modifications to your home, employing medical or personal help or even allowing a loved one to take time away from their workforce to look after you.

Trauma Insurance (often called Critical Illness Insurance) can attract higher premiums for older Australians as the rate of accident and illness increases. 

It is essential that personal insurance takes a leading role in considering your plans for retirement.  When considering your retirement needs, talk to the experienced team at Make A Difference Insurance.  We can help guide you through your personal insurance needs to ensure your retirement is what you’ve long planned for.