Aviva has launched a life insurance policy for the over 65s in Australia, designed to cover an ageing population.

Most insurance companies only offer cover to age 65, but Aviva has extended its critical illness and disability insurance to age 90 in response to increasing numbers of older people. The policy will convert after the age of 65 to a ‘loss of independent existence’ policy that will be based around the customer’s ability to perform daily activities such as washing and dressing.

In Australia, over 2.5 million people are aged 65 or older, and the average life expectancy of someone over 65 now is 82.7 years for men and 86.1 years for women. Some 54% of people over 65 have a disability.

Rob Donaghy, Aviva’s director of public affairs, said: There are a lot of people who really need this type of insurance cover and it will certainly provide peace of mind for people concerned that suddenly they are uninsurable because they are over 65.