Consider how insurers evaluate life insurance costs. One factor is health. Another is lifestyle or fitness. A third is the rate of deaths within an age group. In all of these cases, generally speaking it helps to be young.
Younger people are less likely to have health issues, more likely to be fit, and have a lower death rate compared with more senior people. Taken together, this means they will tend to have less expensive life insurance premiums.
In the case of NobleOak, a medical risk assessment is conducted only once, at the start of the policy’s life, unless you apply for certain changes or increases to your cover
The value of life cover
While there are many factors which determine someone’s premium, health is an important one. If the underwriting assessment is conducted at age 30 then the premium loading that will be applied based on the person’s health will generally speaking tend to be more favourable than the premium loading applied based on health when someone is applying for cover at age 55.
Now, consider how people evaluate whether they should take out life cover (sometimes known as ‘term life cover’). Two of the major factors are dependants and financial security. Younger adults tend to have larger mortgages, less investment wealth and often have children who rely on them.
Taking into account these factors, what you generally find is that life insurance cover is not only relatively less expensive for younger people, it also tends to be more valuable
“What you generally find is that life insurance cover is not only relatively less expensive for younger people, it also tends to be more valuable.”
A flexible policy to suit your lifestyle
This value extends beyond a simple cost-benefit analysis. With a NobleOak policy, there are flexibilities that are likely to be useful to a younger demographic.
The ‘future increases benefit’ allows customers to increase their life cover amount by the lesser of $100,000 or 20% after a major life event such as a marriage, birth, divorce, an increase in mortgage or the death of a partner, without requiring another health assessment.
Also, the ‘terminal illness benefit’ means that if the insured is diagnosed as terminally ill and given less than 24 months to live (diagnosed by two independent medical practitioners) then the full insured amount is paid out following the diagnosis instead of upon the death of the insured, meaning the insured person can have more financial security and see that their loved ones are properly set up and cared for.
There is nothing pleasant about the need for life cover, but its benefits are clear. It’s not just for the seniors. In fact, there can be some very good reasons to take out a policy at a young age.
For an instant quote, visit www.nobleoak.com.au/charteredaccountants or phone 1300 108 490 and mention ‘CA – Chartered Accountants’. Cover available for Australian residents only.
NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 issues NobleOak life insurance products. See the product disclosure statement (available at www.nobleoakcom.au) for details and to consider if the product is right for you. General information only – it does not take your circumstances into account and is not personal ﬁnancial advice. Online quotes are indicative only – your premium will take into account your age, occupation, sum insured, health and pastimes. You should not cancel any existing life insurance product until you have been informed in writing that your new cover is in place.
Important information – The Target Market Determination for NobleOak’s Premium Life Direct insurance is available on our website www.nobleoak.com.au/target-market-determination.