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How do I increase my life insurance cover?

Life changes and so might the amount you need covered.

There are multiple reasons why you may want to increase your life insurance cover. Your personal circumstances may have changed (i.e. you get married, have a child, suffer an illness etc), or you may simply decide that the benefit amount is not enough to keep pace with the cost of living. Whatever the reason, if you do decide to increase your cover, there are several ways you can do this:

  • Applying to increase your benefit amount. You can also apply to your insurer to have your benefit increased, but you may have to undergo another assessment of your health and circumstances.
  • Automatic CPI Indexation. Every year at renewal time, your insurer will offer to increase your cover to keep pace with the Consumer Price Index (usually around 5%). Choosing to accept this offer will at least ensure your benefit amount keeps up with inflation.
  • Guaranteed Future Insurability benefit. If your policy includes this benefit, then you will be able to increase your cover under certain conditions, without the need for a medical reassessment.

Compare life insurance from these direct brands with up to $15 million in cover.

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$1,500,000
65
$3,000
No
80
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.

$15,000,000
69
$0
Yes
99
Protect your family with NobleOak’s Life Insurance cover. Plus, pay no premium for 2 months with combined cover. T&C’s apply.
$1,500,000
65
$100,000
Yes
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. Ends 31 March 2019.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$2,000,000
74
$100,000
Yes
99
Join Qantas Life Insurance and earn up to 150,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Go into the draw to win (1 of 10) $1,000 eftpos gift cards when you get a quote for Medibank Life Insurance. T’s and C’s apply.
$1,000,000
65
$100,000
No
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.

Compare up to 4 providers

Which brands include a future insurability in their policies?

BrandFuture Insurability FeatureWhen will this feature expire (Renewable date following)
AIAYesPolicyholders 55th birthday
AMP ElevateYesPolicyholders 55th birthday
AsteronYesAfter policyholders 60th birthday
BTYesPolicyholders 55th birthday
ComminsureYes"The cover expiry date or after the life insureds 45th birthday"
MLCYesAfter policyholders 55th birthday
OnePathYesPolicyholders 55th birthday
TAL Accelerated ProtectionYesPolicyholders 55th birthday
Zurich Wealth ProtectionYesAfter policyholders 54th birthday
ANZYes60
Zurich EzicoverYesNot stated
TAL Lifetime ProtectionYesPolicyholders 55th birthday
WoolworthsYes
American ExpressYesPolicyholders 54th birthday

Data taken from brand product disclosure statements on May 2017. Benefits, conditions and amounts are subject to change at anytime.
Learn more about guaranteed future insurability benefits

Will I be reassessed if I increase my cover?

Underwriting is required with all new policies and the same applies when increasing the cover amount on an existing policy. Your insurer will want to secure themselves against the risk of insuring you as you age and are more likely to experience health issues than when you initially applied for cover, so it will be necessary for you to undergo a medical exam.

Can I avoid reassessment if I increase my life insurance amount?

The only real way to avoid reassessment when applying to increase your cover amount is if your current policy includes a Guaranteed Future Insurability benefit.

Many life insurance policies include this benefit, which allows you to increase your benefit amount without additional underwriting if certain life events cause your circumstances to change. These include:

  • Marriage
  • Divorce
  • Birth
  • A salary increase
  • The death of a spouse

Some policies will also allow for an increase of around 25% of the cover amount every two or three years without one of these life events occurring, but while further medical underwriting may not be required, you will still need to provide financial evidence to justify the increase.

Can I increase my cover before a condition is diagnosed?

If you think you may be likely to be diagnosed with a life threatening or terminal illness or disease, it is not illegal to apply for additional cover on your life insurance, providing you do not withhold any information from the insurer. If you do and they increase your cover and you then are diagnosed with the disease, your insurer will be within their rights to refuse you cover if you try to claim.

The best thing to do if you are about to be diagnosed with an illness would be to apply for an increase in cover and inform your insurer of your circumstances. They may allow you to increase your cover for an additional loading or with an exclusion added to your policy in relation to the pre-existing medical condition.

Get a life insurance quote

Don Gribble

Don is a creative writer with extensive experience writing scripts, blogs, web content and ebooks. He enjoys writing because it allows him to know a little bit about a lot of subjects and to continue learning new things every day.

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