Benefits of Life Insurance

Not sure if you need life insurance? Find out how you can benefit from cover.

Whether you're young and single, just starting a family, or readying yourself for retirement it's important that you have the right level of life insurance.

Read on to learn some of the key benefits of life insurance and find out how you can benefit from cover. Or complete the contact form below to compare quotes from Australian life insurers.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Compare Life insurance quotes from these direct brands

Rates last updated August 18th, 2017
Product details Maximum cover Maximum Entry Age Cooling-off
(days)
Life Insurance
Life Insurance
Choice of cover options and flexible premiums to suit budget. No lock-in contracts and fast application. $1,500,000 65 30 Get quoteMore info
Real Family Life Insurance
Real Family Life Insurance
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ . $1,000,000 64 30 Get quoteMore info
Term Life Insurance
Term Life Insurance
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness. $1,500,000 69 30 Get quoteMore info
NobleOak Term Life Insurance
NobleOak Term Life Insurance
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs. $15,000,000 69 30 Get quoteMore info
Woolworths Life Insurance
Woolworths Life Insurance
Receive a discount of 10% on life insurance as a Woolworths Rewards Member. T's and C's apply. $1,500,000 65 30 Get quoteMore info

Why should you buy life insurance?

There are two main reasons you may consider life insurance:

  • To protect your family against any financial setbacks caused by your death
  • Provide you with ongoing support if you're unable to work

Having a life insurance policy can help to ease the financial pain in an already stressful time. When taking out a life insurance policy, it's a good idea to factor in the various expenses you want covered. Common expenses include:

  • Funeral costs
  • Outstanding debts
  • Mortgage payments
  • Education fees for your children

Who might want to consider life insurance?

While life insurance can help a range of people, it's especially important for:

  • Those with kids. If you have young kids who still have to be put through school and university you need to seriously consider having life insurance in place. In the event of your death the money paid out on the cover will go towards ensuring that your kids are still able to get a proper education as well as ensuring that there is enough cash for them to be brought up properly in a comfortable home with clothes, food, money for healthcare and all the other things that kids need as they grow up.
  • People with debts. If you have a lot of debt the last thing you want is for your family to be left to deal with it all following your death. By taking out life insurance you can ensure that adequate money is paid out to clear your debts and sort out your financial affairs whilst also securing the financial future of your family.
  • Main income earners. If you are a breadwinner in your household you need to ensure that in the event of your death your family do not lose their financial lifeline as well as a much loved member of the household. Taking out life insurance cover means that the loss of income will not have to be a big problem for your family so they will have one less thing to worry about at what will already be a very difficult time for them.
AgeLife EventsFinancial ObligationsTypes of Insurance to Consider
18-25
  • Start full-time work
  • Move out of home
  • Start accumulating wealth
  • Everyday living expenses
  • Small personal debt
  • Income Protection
25-35
  • Increase in income
  • Purchase house
  • Increase in short-term debt
  • Marriage
  • Children
  • Short term debts
  • Spouse and children
  • Everyday living expenses
  • Mortgage
  • Life cover
  • Income protection
  • TPD
  • Trauma
35-45
  • Increase in earnings
  • Reduction of debts
  • Outstanding mortgage and personal debt
  • Investments
  • Everyday living expenses
  • Retirement fund
  • Life cover
  • Income protection
  • TPD
  • Trauma
45-55
  • Maximum earnings
  • Preparing for retirement
  • Less financial commitments as children move out
  • Outstanding mortgage and personal debt
  • Investments
  • Everyday living expenses
  • Retirement fund
  • Life cover
  • Income protection
  • TPD
  • Trauma
55 and Over
  • Protecting wealth accumulated
  • Retire from full-time work
  • Finance lifestyle with savings
  • Everyday living expenses
  • Any outstanding debts
  • Medical costs
  • Funeral Costs
  • Life Cover
  • Trauma Insurance
  • Funeral Cover

Finding affordable life insurance

There are a number of risk factors that you should be aware of when looking to take out life cover.

Health factors

Your health plays a large role in how much your premiums cost. If your family has a history of hereditary disease or an above average BMI, you'll pay more for your life insurance than those with a clean bill of health.

Lifestyle factors

An underwriter will also look at various lifestyle risk facts. If you regularly participate in adventure sports, smoke or drink heavily, you'll end up paying more for cover.

Your age

The age of the you take out cover will have a large impact on your life insurance policy cost. The younger you are when you take out cover, the less you'll pay.

Compare life insurance quotes from Australian life insurance providers

William Eve

Will is a personal finance writer for finder.com.au specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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