Online is for all ages when buying life insurance

It would be no surprise to anyone that young people born into the digital age are more advanced with online technology compared to older people who grew up in the non-digital, pre-internet age.

However, when it comes to looking for information on life insurance and buying it online things are beginning to change.

According to NobleOak’s 2022 Whitepaper research conducted in 2022 the internet is the most used source for finding information generally as well as for getting comparisons and checking customer reviews. And even more so for taking out life insurance cover direct.

Buying insurance via websites is the dominant option

What may surprise you is that in the 2017 NobleOak survey just 20% of people bought through a website. Fast forward to the 2022 Whitepaper survey and we see quite a different picture. Now 48% of respondents indicated a preference for buying their insurance through websites.  The survey also revealed that for people with life insurance seeking information look to internet review sites (28%) and the internet more generally (25%) than they look to family (21%) or friends (14%).

Direct insurance is no longer for a younger crowd

Direct life insurance used to be the preserve of a younger crowd because they were comfortable purchasing online. However, survey responses suggest that currently, 55% of direct life customers are over 45 years old vs 42% for other life insurance.

Living in an uncertain world

The Whitepaper suggests that the upheavals of the past two years have led more people to ‘plan for the future’ and adapt in positive ways. The 2022 survey found that in a world touched by Covid-19 people have been prompted to spend more time with family, plan for the future more, think about mental health and work more from home.

In an uncertain world, the NobleOak 2022 Whitepaper found that those people who see the risks they face, such as getting Covid-19 or other illness, but have done something positive to manage those risks (i.e. taken out life insurance) seem to be not only protecting their loved ones but also helping to protect their own happiness.

6 reasons to consider life insurance if you are over 50

Life insurance is worth considering beyond your 50s. It’s the time when you are often planning your future, retirement, and your family and loved one’s financial security. And there are plenty of reasons to plan ahead:

  1. Older Australians are living longer than previous generations
    The 65+ age group has steadily increased over the past century, from 1 in 25 people in 1911 to 1 in every 6 in 2020. This extended life is a tremendous positive. But if you are part of this ageing population, financial support for any health deterioration becomes very relevant.
  2. Older people have greater chance of health loss
    Australians aged 65–69 make up approximately 5% of the population but the Australian Institute of Health and Welfare report this group experience more health loss than other 5-year age groups. These latter years with their potential health issues can require specialist support, and potential costs.
  3. You can focus on your retirement
    Having the security of life insurance when you are over 50 allows you to focus on retirement knowing your loved ones and dependants, precious assets, and years of hard work have an additional degree of protection.
  4. Allows you to leave a financial legacy
    With life cover, upon your death the lump sum payment will be paid to your nominated beneficiaries. This could be your final legacy for them. You can also leave this cash benefit to a preferred charity or even for the care of beloved pets.
  5. Your funeral costs covered
    Many life insurance covers contain a ‘Funeral Advance Benefit’ that is paid quickly to assist with the funeral costs. You can also purchase Funeral Insurance but potential policyholders need to be aware that typically a ‘Funeral Advance Benefit’ is a benefit under your life insurance cover, whereas Funeral Insurance which pays out a lump sum in the event of your death to be used to cover costs associated with your funeral is not actually a life insurance product.
  6. Estate equalisation
    Life Insurance provides a solution to estate equalisation dilemmas. It can help allow you to keep your business, holiday home, and other assets in the family by leaving your assets to one beneficiary while providing others with a lump sum from your Life Insurance policy. Estate planning is rather complex and very different for different people, so it’s always a good idea to consider tax and/or legal advice when thinking about estate planning.

Benefits of buying life insurance direct

As seen in the Whitepaper data many more people, especially those over 45, are buying life insurance directly online than was the case 5 or so years ago. Buying direct from an insurer, usually over the internet or phone, may help you to find cover that suits your needs and provides you with more control.

Buy direct with NobleOak Life to get fully underwritten life insurance

NobleOak provides fully underwritten life insurance cover, which means health, occupation and lifestyle questions are asked upfront. This usually includes medical tests and details of your medical records, to assess your risks, which can often lead to more certainty and fewer delays at claim time.

Some insurers do provide life insurance without underwriting but there are generally some exclusions such as a broader exclusion for pre-existing medical conditions. It’s often faster to get life insurance without underwriting, but the claims process can be longer because the insurer holds less information.

With NobleOak, all policies are underwritten so there are fewer surprises at claim time.

Buying direct online life insurance seems no longer to be the domain of the younger policyholder. This positive shift if you are over 50 looking for or buying life insurance gives you more options to choose from. With the ease of the internet, and the comfort and security of your home, you can research and compare various policy features and access information to help you choose a policy that suits your needs.

Taking out life insurance may be one of the most important financial decisions you can make. To find out more or get a quote, call a NobleOak Life Australian-based insurance team member on 1300 014 494 or go online for a no-obligation quote.

This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

 

Resources

NobleOak Life Insurance Whitepaper 2022

Life Insurance Underwriting

How Covid-19 has changed the way we live

Coronavirus: How Covid-19 is changing the world

Australian Burden of Disease Study 2018

AIHW: Deaths in Australia

Direct Life Insurance: The Pros & Cons

Margaret Rochford

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