Q. What is life insurance? Life insurance provides a benefit payment if the person who is insured dies. This can be used to help you cover the mortgage, any debts and ongoing expenses.
31 August 2018 update
Life insurance sold directly through an insurer has been in the news recently for 'poorer claims outcomes'. These situations however, don't represent all life insurance policies and are avoidable in most circumstances. When you buy a policy here's what you should know:
Life insurance protects more than just your life: it protects your way of life. Finding the right mix of death, income protection and total permanent disability coverage can make a real difference to both you and your family’s futures.
Use the calculator in the next tab to estimate how much you need insured.
*Prices are an estimate based on a 35 year old non-smoking male office worker. Quotes last checked on September 2018 and are subject to change. The actual cost is different for everyone as it's affected by factors like sum insured, medical conditions and lifestyle factors.
Answer three questions to see the coverage we recommend*.
1) How much debt do you owe?
Include mortgages, credit cards, car loans, student loans and other debt.
2) How much do your loved ones need each month?
Start with how much you take home monthly, adding rent, food and necessities.
3) How many months will your loved ones need the income?
Indicate how long you think your loved ones need before they can sustain themselves in your absence
*Our recommendation is simply an estimate. It's a good idea to speak to an adviser
| Type | Situations it generally covers | Maximum amount of cover you can get |
|---|---|---|
 Life insurance
|
|
One brand (NobleOak) has a maximum amount of $15 million. |
|
|
Usually up to $2 million. |
|
|
Usually up to $2 million. |
 Income protection
|
|
Usually up to 75% of your monthly income and up to $60,000 per month. |
 Personal accident |
|
Usually up to 75% of your monthly income and up to $60,000 per month. |
 Funeral Insurance
|
|
Usually up to $15,000. |
Types of life insurance: 2018 guide
Handling every day living expenses
Paying off a mortgage or buying a house
Taking care of your debts
Raising children
Simply compare the cost of a $500,000 policy vs the average costs* that may need to be covered if you're not around.
| Comparison | Average cost |
|---|---|
| Average costing life insurance policy | As little as $23.48 per month |
$297,000 |
|
| Average home loan size | $371,700 |
$3,130 |
The monthly premium for a $500,000 policy is around $23 for a 30 year old. Meanwhile, the cost of movie tickets for two people in Sydney can cost around $39.
| Expense | Average cost (Sydney) |
|---|---|
| Monthly life insurance premium ($500,000 of cover) | $30 |
| Internet 8 Mbps (1 month of connection) | $58 |
| Flat screen TV (40 inches) | $668 |
| Microwave (800/900 Watts) e.g. Bosch, Panasonic, LG, Sharp, or equivalent brands | $200 |
| Laundry detergent (3 l.) | $10 |
| Cleaning (hourly) | $35 |
| Pair of jeans e.g. Levis 501 or similar | $112 |
| A summer dress in a High Street Store e.g. Uniqlo, Zara, H&M | $83 |
| Pair of sport shoes e.g. Adidas, Nike, Puma, etc | $156 |
| Pair of leather shoes (Mens) | $169 |
| 1 liter of petrol | $1.43 |
| Monthly ticket public transport | $167 |
| Taxi trip on a business day (normal rate) 8 km | $22 |
| Basic pub dinner out for two | $53 |
| 2 movie tickets | $39 |
| Dinner for two at an Italian restaurant (includes appetisers, main course, wine and dessert) | $113 |
| 1 cocktail drink at a downtown club | $18 |
| Coffee in the city | $4.29 |
| 1 beer in neighbourhood pub (500ml) | $8 |
| 1 min. of prepaid mobile phone chat | $0.75 |
| 1 month of gym membership (business district) | $97 |
| 1 package of cigarettes e.g. Marlboro | $29 |
Data sourced from Expatistan.com and compares the cost of living in Sydney. Date last updated September 2018
Case study: How insurance saved a teenagers life
It's actually pretty straightforward. Just follow this process:
Consider type of cover you'll need and how much you'll need for each cover type. List out the types with a rough figure of how much you’ll need. For example:
Life insurance: $1,000,000
TPD: $250,000
Income protection: $6,000 per month
Funeral expenses: $10,000
Use our quote engine to get an online comparison of:
Price
Features
Benefits
Age limits and more
How much help do you need?
If you’re confused about the type or amount of cover you need don’t worry, an adviser can help.
If you’re happy to apply online for cover, you can do so with a range of direct insurers.
Unlike some other comparison services, finder is independently owned and operated (not owned by an insurer or bank). Our guides and articles are written in accordance with our strong editorial principles and guidelines. Any life insurers we partner with do not approve our content or editorial direction.
You won't need to enter your contact details to compare the prices and features of different policies online.
The only call you’ll get will be from an adviser once you’ve decided on the cover you want. Try it out.
We believe in giving you detailed information so you aren’t just blindly comparing on price.
Empower your life insurance choice with the know-how of an expert.
The process of finding the right cover involves asking yourself a few simple questions:
Find out what you can actually be insured for and what you stand to receive in the event of a claim. Some insurers will allow for an unlimited amount of life cover to be taken out while others will cap it for certain occupations and age groups.
Consider age limits e.g. when you can no longer apply and when your policy will stop covering you.
If you are a senior looking for cover, age limits and when your policy will end can vary between insurers.
Some insurers will offer what is known as “Guaranteed Insurability” which lets you increase your cover without having to take another medical exam.
Look at the range of features provided automatically and those that can be purchased for an additional premium. It might be painful but actually taking the time to get an understanding of these and whether they actually apply to your situation is extremely valuable.
Most insurers will let you combine your life cover with TPD and Trauma to ensure you have adequate protection for “living events”. Combining cover should result in a premium discount.
Conditions on the cover that is provided can vary between insurers based on your occupation. There may be insurers specialising in cover for your occupation i.e. if you are a high-risk worker.
Find out if there are any restrictions to adjusting your level of cover, who is covered on your policy and if you can remove certain features.
An insurance consultant can help you assess your situation and find a policy to match your cover requirements. They can use their knowledge of the insurance industry to help you find discounts and insurers willing to work with your situation.
Guide: Right time to buy life insurance
Here are some tips to get quality cover that won’t send you broke;
Both options have benefits to consider so it really comes down to your own personal preference. As a general guide:
Cover with advice | Cover without advice
Most superannuation funds have a default amount of cover that's standardised for its members. This means in some cases the amount and type of cover you have may be too much or not enough for you. For instance if you are younger with no dependants you might not need death cover.
The amount of cover can usually increased, decreased or cancelled altogether. Check with your superfund to find out how much cover you have and what you're paying for.
Not an Australian resident?
There are a number of insurers willing to provide cover. Typically:
I'm over 70 years of age?
Most insurers provide cover to applicants up to age 75 (age next birthday). Most brands will reduce the level of cover that older applicants can apply for.
I work in a high-risk job?
You will probably be required to pay a higher premium for cover than an office worker. It’s worth discussing your occupation with an adviser to give yourself the best chance of finding a willing insurer to cover you.
I have a pre-existing condition?
It depends on the nature of the condition and any treatment you are undergoing and the insurer themselves. The insurer will usually either exclude the condition, ask for more details or accept it.
Receive quotes for life insurance
Disclaimer: Please read our Terms and Conditions to understand the services we provide and how we will use the information we hold. The product information on this website is not intended to imply any recommendation or opinion about a financial product listed. Consider your personal circumstances and obtain professional advice before you commit to, or purchase, any particular product.
Pictures by Shutterstock and photo by Jenn Evelyn-Ann on Unsplash
Icons made by Freepik,dDara,Pixel Buddha from www.flaticon.com
*Average costs
https://www.finder.com.au/life-insurance-and-the-cost-of-raising-children
https://www.finder.com.au/australian-home-loan-statistics
https://www.finder.com.au/credit-cards/credit-card-statistics
Basically, I am looking for a 300,000 life insurance policy that is ten a year term policy that is I can find one and one that I can afford (it may require me getting two policies but I would like to do one if I could).
My issue is that I do not have a doctor that I have seen in the past 10 years or so. So, I don’t have any current or regular medical records to give to a life insurance company up front which is I understand what most of them want. I am willing to let them do a medical exam if they want one.
Do you know of any companies that might offer this as an option for me under my circumstances?
Thank you for your help and time.
Hi Tenna,
Thanks for getting in touch with finder.
While it is true that most insurers will look for your medical history, there are still companies who are willing to provide cover even if you don’t have the necessary documents.
If you are looking to get life insurance cover in place quickly and are in good shape with no pre-existing medical conditions, you may be eligible for cover that requires very little if any medical underwriting. Many direct online insurers will now have a short questionnaire for applicants and if the entry level requirements are met, cover can generally be put in place without the need for further documentation.
Please go to this page to compare no medical life insurance cover.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hello
I am 58 years old female and my husband is 67 years old. We are self-employed farmers. We are both non-smokers.We have no dependents. We have no superannuation or savings, shares or investments of any kind. We have about $100,000 in debt on our farm. Our home in also on the farm. I was thinking about taking out a joint policy with my husband. I’m not sure which company would insure us because of our age. I have no idea where to start.
Thanks
Hi Anne,
Thanks for reaching out.
The insurance companies listed on this page (https://www.finder.com.au/life-insurance/senior-life-insurance) offer life insurance policy to seniors who are over 60 years old. You may fill-in your information on the form and receive quotes. Alternatively, you may get quotes directly from the brands listed on the table. Simply click the green “Get Quote” button.
I hope this will help.
Cheers,
Liezl
Can i get life insurance if im unemployed
Hi Rose,
Thank you for your question.
You may be able to get life insurance if you’re unemployed but you might be declined coverage for the lack of ability to pay for the policy.
Please make sure though to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.
All the best,
Zubair