Life Insurance Finder – Compare Australian Brands

Simply compare the cost of a $500,000 policy vs the average costs of life that may need to be covered if you're not around.

Cost of life insurance vs common expenses

The monthly premium for a $500,000 policy is around $28 for a 30 year old. Meanwhile, the cost of movie tickets for two people in Australia can cost around $39.

About our comparison service

How do I find cover that suits me?

The process of finding the right cover involves asking yourself a few simple questions:

• What is the minimum and maximum cover amount?

  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.

• What is the maximum entry age and expiry age of the policy?

  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.

• What are the policy features?

  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.

• Can I combine the policy with other types of insurance?

  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.

• How is your occupation covered?

  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.

• How flexible is the policy?

  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.

• Considered speaking with a consultant?

  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

How to keep the costs down when buying life cover

Here are some tips to get quality cover that won’t send you broke;

Buy cover young and lock in a competitive rate

As opposed to when you're older when an insurer will consider you a greater risk

Read this guide

Consider salary continuance insurance

Salary continuance maybe more suitable if you don't have any financial dependants.

Read this guide

Keep an eye out for special offers

Many insurers have special offers so you can get extra value. This may include free cover for the first year, access to health rewards programs and premium discounts.

Read this guide

• Additional tips

  • Level premiums. Start off your policy at a higher rate but pay the same rate as you get older.
  • Find out how much cover you actually need. Take the time to assess what needs to be covered in the event your death/serious injury.
  • Find out what cover you already have. You may already have some cover from your superannuation fund. Find out if extra cover is necessary.

  • Take the time to shop around. Comparing policies from a range of insurers gives you a greater chance of an affordable quote.

Direct or through an adviser: Which is the right way for you to buy cover?

Both options have benefits to consider so it really comes down to your own personal preference. As a general guide:

Life Insurance with an adviser

If you want a more customised package to fit your personal circumstances e.g. more than one cover type, funded by super for instance.

Read this guide

Life Insurance directly with an insurer

If you are looking for convenience and don't need too much customisation e.g. if you are healthy and are only looking to cover your family in the event of your death

Read this guide

What about group (super) life insurance?

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.

Life insurance inside super vs standalone cover

Am I eligible for cover if...

Still need help? Check out these answers to common questions

Whether you need it

• Q. Do young people need cover

  • A. You may not want to pass on outstanding mortgage debt, personal debt or final expenses i.e funeral costs to your family and friends. What about income protection or TPD? If you suffer a serious injury and can’t work for a few months or ever again, what would you do then?

• Q. What about self-insuring

  • A. Most people are not fortunate enough to have adequate funds invested in a high-interest account that would be enough to cover their outstanding debts and give their family support for the future. With some life and disability claims reaching up to $2 million … it’s a fair wad of cash to just have sitting around!

• Q. Doesn’t health insurance cover illness and injury?

  • A. Not exactly. Health insurance covers medical expenses that are associated with sickness and injury but does not provide support for bills, debts or loss of income if you can’t work for an extended period or ever again. Life insurance covers the gap between the expenses covered by health insurance and additional costs of ongoing treatment, rehabilitation and loss of income.

Receiving a life insurance quote

• Q. How do you receive a quote?

  • A. You receive a quote for cover by entering your details in the form above. A certified insurance consultant will then call you to discuss different policy options and provide you with a preliminary quote based on these details.

Applying for cover

• Q. Who can apply for cover?

  • A. Australian and New Zealand Citizens, and Australian permanent residents (those residing in Australia at time of application). Age restrictions vary between brands and cover selected.

• Q. What if you already have cover?

  A. An insurance consultant can help you review your current policy to help you decide whether you can benefit switching to another option or increasing/decreasing the level of cover in your current policy.

• Q. Who is defined as a smoker?

  • A. Insurers class anyone that has smoked tobacco or any other substance in the last 12 months as a smoker.

• Q. Can you take out cover with your spouse/partner?

  • A. Yes. Generally, two people can be covered under a single policy. Discounts for multi-policies are offered by some brands.

• Q. Can you add them later?

  • A. No, generally they will be required to take out a separate policy.

• Q. Do you need to do a medical or blood test when applying?

  • A. Most insurers will only require medical or blood tests at application if the insured has a pre-existing condition that needs to be assessed further. Additional evidence may be required in the event of a claim.

• Q. Can you get cover with a medical condition?

  • A. It depends on the condition and treatment. Every insurer has different conditions for pre-existing conditions so it is best to check the PDS before taking out cover. If the insurer decides that your pre-existing medical condition presents to great a risk for them, they will generally exclude it from cover. As an example if you are applying for cover and have a history of back problems, your insurer may exclude all claims related to back conditions from your policy.

• Q. What if your condition is not covered?

  • A. There are generally two options available to you:

  • It might be worth speaking with an insurance consultant to see if there are any other companies out there that are willing to provide you with cover. Assessment criteria varies between insurers so it's always worth looking around if you have struggled to get cover due to a medical condition.
  • You may also be able to have your current insurer review your condition when it comes time to renew your policy to see if the exclusion can be lifted if your situation has changed.

Policy exclusions

• Q. When won't you be covered by your life insurance?

  • A. Generally all deaths are covered except for suicide within the first 13 months of the policy. Accident only life cover will only provide cover for death that is the result of an accident. Some policies may exclude death related to pre-existing medical conditions for a set number of years from the start date of the policy.

• Q. When won't you be paid for TPD, Trauma or Income Protection Cover?

  • A. Most policies will not pay a benefit for claims arising from;

  • Intentional self-inflicted injury or self harm.
  • Acquiring HIV, AIDS, Hepatitis B or Hepatitis C unless if through performing duties of the your occupation.
  • Disablement caused during engagement in armed forces of any country.
  • Claims related to pregnancy, uncomplicated childbirth or miscarriage.
  • Claims caused by your engagement in unlawful acts.
  • Claims from aviation activity unless you are a fare paying passenger on a scheduled flight.

Your policy

• Q. Can you increase or decrease your level of cover?

  • A. Yes. You can apply to increase or decrease your cover at any stage to meet your needs. It’s worth noting that you will be required to undertake another round of assessments with your insurer.

• Q. Can you add/remove beneficiaries from my policy?

  • A. Yes. You can update beneficiaries at any stage.

• Q. Can you cancel my policy?

  A. Yes. Most policies offer 30 day cooling off period whereby premiums paid during this period will be refunded. No premiums will be refunded if you cancel your policy after the cooling off period.

• Q. Do life insurance brands still offer surrender value for policies?

  • A. No. Life insurance is not an investment product and is designed to pay a benefit for death, terminal illness, injury or illness.

• Q. Are you covered overseas?

  • A. Yes. Most policies provide cover 24 hours a day anywhere in the world. Countries that have been advised against travel are generally not covered.

Making a claim

• Q. If you pass away, how is the claim paid?

  • A. In the event of your death, your life insurer or super fund trustee will pay out the nominated death benefit to one or more of your financial dependents or to your estate. A “binding nomination” can ensure the benefit from the cover in your super is paid to the beneficiary of your choice. You should make sure your estate has the necessary documentation so that they can claim on your behalf (see below).

• Q. How can you make sure that cover from my super fund is paid to your beneficiary?

  • A. If you have life insurance through your superannuation and are concerned about who will receive the benefit payment, you can make what is known as a binding death benefit nomination. A binding nomination allows you to nominate exactly who will receive what in the event of your death, essentially making your Estate Planning more certain.

• Q. Who can be nominated with a binding nomination?

  • A. A binding nomination can be taken out on;

  • Your current spouse.
  • Child of any age.
  • People that are financially dependent on you at the time of your death.

  The benefit payment can be distributed among the different beneficiaries provided you give details of the share you wish to be given to each beneficiary.

• Q. What does a beneficiary need to provide to claim a benefit from a deceased policyholder?

  • A. Generally, the beneficiary will need to provide:

  • A completed claim form.
  • Original policy document and policy schedule.
  • A copy of the deceased’s birth certificate.
  • A certified copy of the deceased’s will.
  • Probate or letters of administration.

• Q. Do you have to keep paying premiums if you make a claim for injury or illness?

  • A. If you claim for injury or illness on a life cover policy, your benefit will be reduced by the amount paid and your premiums adjusted accordingly.

• Q. What happens if you miss a life insurance payment?

  • A. If you're premiums are becoming to expensive or if you're going through financial hardship, there are options to freeze premiums for a short period of time. You should contact your insurer to discuss your options. If you don’t reach out to your insurer and your premiums go into arrears, you run the risk of your policy being cancelled.

• Q. How many people can you nominate to receive a benefit on your policy?

  • A. Most policies allow you to nominate up to five (5) beneficiaries on your policy.

• Q. What happens if you don’t nominate anyone to receive the benefit?

  • A. The claim will be paid to your estate.

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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.

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¹NobleOak Whitepaper: Life Insurance in Australia, Consumer Behaviour Transformation, January 2018.