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Do I need life insurance?

Take our 1 minute quiz to find out if you need life insurance based on your circumstances.

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Quiz: Do I need life insurance?

When to think about taking out life insurance

People think about life insurance around these life stage changes:


Office worker

New job


Wedding ring

Married


Baby cloth

Had a baby


House

Bought a house


Investment

Made a large investment


Money bag

Come into a large amount of money

The most common are:

  • Having children. Parents-to-be often consider life cover to be a high priority when having kids enters their life.
  • Buying a house. Getting a mortgage is the biggest financial commitment most people make in their lives. It stands to reason that you'd consider protecting yourself ahead of your first mortgage payment.
  • Employment circumstances change. Going self-employed is one example of a time you'd want to consider life cover, especially if you lose other types of insurance that were tied to your former employers.
  • Find the right cover for your needs
    This super-quick quiz takes less than 1 minute ⚡

    Based on where I'm at in life, what type of cover do I need?

    Everybody is different and cover requirements will change based on the events you encounter at different life stages. But still, it's worth a look at a more detailed overview of key times many decide to take out cover based on their life stage.

    Life Insurance Graph

    Different types of life insurance

    Here are the main types of life and income protection cover you can get:

    • Life cover. Term life insurance provides a lump sum benefit to your beneficiaries in the event of death or after the diagnosis of a terminal illness. You can get this insurance as a standalone policy, or bundled with more cover options.
    • TPD insurance. Total permanent disability (TPD) insurance provides a lump sum benefit if the policyholder suffers a disability as defined in their policy.
    • Trauma insurance. Provides a lump sum benefit if the insured suffers a medical trauma that is specified in their policy. Most policies will cover up to 50 different conditions including strokes, cancer and heart attacks.
    • Funeral insurance. Funeral insurance provides a lump sum benefit to cover funeral costs and other outstanding expenses. The maximum amount of cover that can be taken out is usually about $15,000.
    • Income protection insurance. Income protection offers an ongoing benefit of up to 70% of the policyholder's regular income if they are forced to take time off work due to illness or injury. This benefit is usually paid monthly.

    How much life insurance might I need?

    The amount of life insurance you need depends on your personal circumstances, such as your age, and the type of cover you want. Start by coming up with an annual sum you'd need to cover your financial commitments. Some experts say the amount of cover you'd want is at least 10 times your annual salary. But it's really up to you to decide how much your family would be comfortable with based on your situation.

    You could also check to see if you already hold some life cover, such as via employment benefits. See how much that would pay out to your dependents and then calculate how much extra they might need.

    Top picks for life insurance in Australia

    Compare life insurance quotes from more direct brands

    Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Average Claims Acceptance Rate Average Claim Time Sum Insured
    NobleOak Life Insurance
    $15,000,000
    69
    $15,000,000
    98.1%
    1.1 months
    $20,230 million
    Get 2 months free when you apply for one or more life insurance types with NobleOak's Premium Life Direct policy before 30 June 2022. T&Cs apply.
    TAL Life Insurance
    $2,000,000
    74
    $2,000,000
    87.10%
    2.9 months
    $36,630 million
    Finder verifies that TAL has more Australian lives insured than any other provider - for 3 years in a row. Plus, get up to 15% off with TAL’s Health Sense program.
    Real Family Life Cover
    $1,000,000
    64
    $1,000,000
    90.20%
    1.8 months
    $53,462 million
    Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
    Medibank Life Insurance
    $2,500,000
    70
    $2,500,000
    87.30%
    3.8 months
    $31,745 million
    With Medibank Life Insurance, you’ll also get access to the 24/7 Medibank Nurse phone service. Medibank health members will save 10% on premiums every year. T&Cs apply.
    Zurich Ezicover Life Insurance
    $1,500,000
    69
    $1,500,000
    Data not available
    Data not available
    $12,444 million
    Get your first month free and a 10% discount by taking out a second life insurance policy (discount applies to the second policy). T&C’s apply.
    ahm Life Insurance
    $1,500,000
    65
    $1,500,000
    87.20%
    3.8 months
    $31,745 million
    Get ahm life insurance by 30 June and keep your cover for 6 months to receive $100 cashback. T&Cs apply^.
    RAC Life Insurance (Only available in Western Australia)
    $25,000,000
    69
    $25,000,000
    98.10%
    1.1 months
    $20,230 million
    When you purchase RAC Life Insurance, WA residents receive complimentary RAC membership which includes access to discounts on fuel, savings on shopping, entertainment and more. T&Cs at rac.com.au.
    RACQ Life Insurance
    $1,000,000
    65
    $1,000,000
    97%
    Data not available
    Data not available
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