Protecting your retirement – Insurance from your mid-50’s up to retirement

Key Questions

  • Do you have a mortgage or any other financial commitments?
  • Are you making voluntary contributions to super?
  • Do your adult children still rely on you for financial support?

What is life insurance?

When your family is grown up and out of the house, now is a great time to enjoy spending more of your income on yourself.

With retirement looming, it’s also time to consolidate all of your hard work into a plan for the future. And the last thing you need at this point of your life is something robbing you of your earning potential.

Life insurance is a smart way to protect your retirement plans from being disrupted by sickness or injury – giving you an alternative source of funds to help you maintain your lifestyle.

What this means for you

While your personal insurance needs may have eased as you reduced your debt, or as your children became less dependent, life insurance still has an important role to play in protecting all of your hard work.

With the right insurance strategy in place, you can ensure have the financial support you need if you set seriously ill or injured, helping you:

  • Pay for the best medical treatment
  • Take an extended break from work to improve your wellbeing
  • Eliminate the need to prematurely spend your retirement savings.

To find out if you have the right cover to protect your lifestyle in retirement, talk to your financial adviser.

What are the chances?

  • Cardiovascular disease (CVD) is the leading cause of death in Australia, with 45,600 deaths attributed to CVD in Australia in 2011.1
  • An estimated 128,000 new cases of cancer will be diagnosed in Australia this year, with that number set to rise to 150,000 by 2020.2

Case study

Mark and Josephine were both aged 59. With their 60th birthdays approaching, they were busy planning a trip to Africa – their first major trip overseas since their honeymoon.

One month out from their holiday, the couple was walking their two pet dogs when Josephine started to feel tightness in her chest. Two minutes later she collapsed to the ground after suffering a major heart attack.

Josephine spent the next three weeks in hospital after undoing triple-bypass surgery. With the medical costs climbing, and Mark taking unpaid leave to help look after his wife, the couple faced the prospect of having to sell assets or drawdown on their super to cover the costs.

Fortunately, Mark and Josephine had taken out trauma insurance on the advice of their financial adviser. On confirmation of Josephine’s medical condition, her policy paid them a lump sum of $200,000.

This money allowed them to pay all of Josephine’s medical bills, and meant that Mark could take another month off work while Josephine recovered. They also added some of the insurance money to their travel fund – meaning they would be able to travel in style when Josephine was fully recovered.

Note: This case study is for illustrative purposes only and the terms and conditions of insurance will depend on the particular insurance policy purchased.


2 Cancer in Australia – Australian Institute of Health and Welfare and Australasian Association of Cancer Registries, 2014