What types of Life Insurance are there?

There are 6 main types of life insurance in Australia.

Updated Dec 23, 2020

Fact checked

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Life insurance is there for you in life emergencies. Because there's more than one way in which your life can change unexpectedly, insurers offer specific policies for various different scenarios and needs. We've broken a few of the main ones down for you below.

Compare the 6 main types of life insurance in Australia

Type	Payment type:	Main purpose	Entry age (Next birthday)
Life cover (Death cover)	Lump-sum	Pays out to loved ones in the event of your death	18 - 79
Income Protection	Ongoing monthly benefit of up to 85% of regular income	Keep up with your expenses if you are forced to take some time out of work due to accident, illness or major trauma	18 - 64
Trauma cover	Lump-sum	Pays out if you're diagnosed with specific illness e.g. stroke so that you can focus on your recovery	18 - 64
TPD cover	Lump-sum	Payment to clear debts, cover medical costs if you become permanently disabled	18 - 64
Funeral Insurance	Lump-sum	Cover the cost of your funeral (up to $30,000)	18 - 79
Accidental injury or death	Lump-sum or income protection	Provides cover in the event of accidental injury /death (no sickness cover)	18 - 64

Calculate how much life cover you may need

Calculate your life cover

Things you should know
This quiz is designed to help you decide what type of life insurance you may need, and how much cover you may wish to apply for. Please note that:
This quiz provides general advice and information. It is neither an endorsement of nor recommendation for, life insurance. Calculations are based on the assumption that all assets besides your house will be sold. We hope that it can help you make an informed decision, but it isn't a substitute for professional advice. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Limitations
This life insurance calculator assumes you will sell your house and assets in the event of death, disability or critical illness.
Calculations are based on limited information provided by your responses. It doesn't take into account special circumstances. For example, you might plan to have your family sell your house if you die but there's a good chance you'll want to hang on to it in the event of disability.
Life insurance calculators can't take these factors into account the same way an adviser can. An adviser can give you a better understanding of how your needs can be very different depending on your circumstances. While life insurance calculators are great for building up an idea of what you need, it's a good idea to seek professional advice for something as important as life insurance.

Get life insurance quotes from direct brands

Name	Maximum Cover	Maximum Entry Age	Minimum Cover	Terminal Illness Benefit
NobleOak Life Insurance Finder Award	$15,000,000	69	$10,000	$3,000,000	First month free for NobleOak Life Insurance. T&Cs apply.	Get Quote View details	Compare	loading Fetching your data...
Zurich Ezicover Life Insurance	$1,500,000	69	$50,000	$1,500,000	Get the first month free and a 10% discount if you take out a second life insurance policy (discount applies to second policy). T&C’s apply.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover	$1,000,000	64	$100,000	$1,000,000	Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .	Get Quote View details	Compare	loading Fetching your data...
Guardian Life Insurance	$1,500,000	64	$100,000	$1,500,000	Get Quote View details	Compare	loading Fetching your data...
Suncorp Life Protect Insurance	$1,500,000	65	$100,000	$1,500,000	Get 5% off for existing customers.	Get Quote View details	Compare	loading Fetching your data...
AAMI Life Insurance	$1,500,000	65	$100,000	$1,500,000	Get 5% off for existing customers.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance	$1,500,000	65	$100,000	$1,500,000	ahm Health members can save 10% off premiums.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance	$2,500,000	70	$100,000	$2,500,000	You could win a $1000 EFTPOS gift card when you get a Life Insurance quote by 2 Feb 2021. There’s a winner each week. Plus, Medibank health members save 10% every year. T&Cs apply.	Get Quote View details	Compare	loading Fetching your data...

Compare up to 4 providers

Thank you for your feedback!

Richard Laycock

Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. When he’s not doing deep dives on data, he is testing the quality of cocktails in his newfound home of New York. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.

Life insurance or funeral insurance Why you should be thinking about income protection insurance now

More guides on Finder

Mercedes-Benz G-Class luxury car insurance
Find out about how to insure the luxury Mercedes-AMG G 63 4x4 SUV.
Best long life milk brands in Australia
Find out which long life milk brands Australian consumers love the most and why.
Compare $100,000 life insurance policies
$100,000 life insurance policies can be very affordable. Compare costs and cover here.
Compare $500,000 life insurance policies
Compare $500,000 life insurance policies, costs and cover here.
Best men’s watches in Australia
These are the six best men's watches you can buy right now in Australia.
Mercedes-Benz E-Class car insurance
Find out how much the average Mercedes-Benz E-Class costs to insure, as well as how to find a prestige car insurer.
ANZ Rewards Platinum Credit Card – Exclusive Offer
The ANZ Rewards Platinum Credit Card offers a competitive rewards program, $0 annual fee for the first year, a $500 gift card, a balance transfer offer and a range of complimentary insurance covers.
Life insurance for asthma sufferers
Learn how to get life insurance if you have asthma.
Life insurance for coma patients
How to get life insurance if you have been in a coma.
Life insurance for stroke patients
How to get life insurance if you’ve had a stroke.

Ask an Expert

Click here to cancel reply.

Display Name

Your Email (will not be published)

Your Question

Subscribe me to Finder’s free weekly newsletter for budgeting tools, timely news and savings essentials to take control of your finances

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

Feedback

Go to site

Looking for life insurance or income protection?

Looking to compare Health Insurance quotes?

Need cover for your next trip away?

Need cover for your business or profession?

Need protection for your car and damage caused to others?

Find the right home and contents insurance policy to protect your home.

Need cheap protection for your furry friend?

Calculate how much life insurance you will need.

What types of Life Insurance are there?

There are 6 main types of life insurance in Australia.

Types

Life Insurance Guides

Brands

Your Needs

Compare the 6 main types of life insurance in Australia