There are several types of insurance that every senior should have, and it’s important to understand why. We’ve taken a look at the most important here.

Funeral insurance

It’s not something people generally like to think about, but funeral insurance can give you peace of mind, knowing that any or all funeral expenses will not have to be paid by your loved ones. There are plenty of options available, providing varying levels of cover and requiring different premiums, so remember to do your research.

Depending on the cover you choose, your family will receive a lump sum payout or, in the case of accidental death (and again, depending on your cover), they may even receive triple the benefit. This means that funeral and other expenses will be covered, and your family won’t have to worry about finding the money needed.

However, when it comes to funeral insurance it’s imperative that your premium payments are kept up-to-date. Another thing to note is that, despite the name, funeral insurance is not restricted to funeral expenses; your nominated beneficiary can use the funds however they see fit.

Accident insurance

Accident insurance is designed to help if you suffer from an accident or injury so you can keep living your life the way you’re accustomed to. If you fall and injure yourself and you need some help around the house, accident insurance will cover these expenses. Accident insurance may cover anything from broken bones, serious accidents, and burns to home assistance, emergency transport and food.

Life insurance

Life insurance is all about caring for your loved ones when you pass away and making sure that they don’t have to worry financially. Life insurance is a way to secure your family’s financial future in the case of death, accident or illness, by providing you/them with payments to cover ongoing bills, fees or other household costs.

Life insurance can also help minimise debt. Debt-inheritance is a big concern in Australia, so by taking out life insurance, you can essentially prevent your family from taking up your debts when you pass away. In addition, life insurance helps to cover any expenses such as a mortgage, so if you cannot earn an income due to death, illness or injury, the burden will not fall on your family.

Home and contents insurance

There’s nothing worse than having your home or precious possessions damaged or stolen, particularly if they’re expensive to replace. Having home and contents insurance gives you added security and lessens the financial paid of repairing your home or replacing stolen goods.

While home and contents insurance is generally bundled together as a single package, there are two different elements – your home and your contents – so remember this when choosing the cover you require.

Home Insurance covers things that are out of your control such as natural disasters. It helps to replace or repair your home, including fixtures, should the need arise. When looking at the cover to choose, assess your needs carefully. Total replacement cover provides the costs to rebuild your home to its original standard, while sum-insured cover covers up to a set amount.

Contents insurance covers the cost of fixing or replacing household items that are unfixed and possessions, including furniture, appliances and jewellery. You’ll need to list the belongings you wish to cover, take photos of them, and then work out how much it would cost to replace them. There are two main types of contents insurance:

  • Cover the value.
  • Replace with new.

Car insurance

You’ve probably been driving for years now, but as you get older your needs for car insurance may change. You may find you need to downgrade your insurance or upgrade it, depending on how much you drive, your needs, and your budget. It’s always helpful to point out to insurers if you have a good driving track record, as this generally makes your car insurance more affordable.

To ensure this, keep on top of all health checks, including hearing and eyesight, as these are the two main factors that affect seniors and can dramatically affect your driving capability.

Other than ensuring you have a good driving track record, there are other things you can do to keep your car insurance premiums down including taking approved driving courses, considering a restricted driver excess, and comparing several quotes before committing to one.

Travel insurance

Your retirement years are there to be enjoyed and, generally, you’ll have much more freedom to travel the world. So make sure you have the right travel insurance to cover you. As you get older, obtaining travel insurance can get trickier as insurance companies generally don’t like to cover people with ailments or age restrictions.

But remember, Medicare does not cover overseas medical costs – only travel insurance does, so it’s essential that you take cover out.

Make sure any travel insurance you get covers you for all medical expenses for injury or illness, as well as theft, damage to baggage and cancellations or disruptions to travel plans, for example flight delays. This is especially important in terms of medical costs, as they can reach into the tens of thousands of dollars overseas.

When you take out travel insurance, make sure the cover suits your needs, is relevant to your age, your destination and what you’ll be doing, and is valid for the duration of your trip. And it’s important to declare any pre-existing medical conditions.

Pinn Deavin also offers aged care planning services for seniors, please click here to find out more or call us on (02) 8525 3700.