Life insurance for women

Why women consider life insurance or income protection.

Did you know that one in four women1 wouldn't be able to survive on sick leave and savings if forced out of work? Or that more than 52% of women2 identify as the main breadwinner in a family?

This is why it makes sense to consider some form of insurance to cover your income in the event of something tragic like death, major illness or injury. While it's not the prettiest topic, we owe it to ourselves and our family to be ready if things go south.

What is life insurance and income protection?

These are two types of cover which should strongly be considered:

Compare life insurance or income protection brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$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.
$1,000,000
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
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.
$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.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.
$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.
$1,000,000
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.

Compare up to 4 providers

Get income protection quotes from an adviser

Please enter your full name
Please enter a valid email address
It's important to give us a valid phone number
Gender
Smoker
Date of Birth
This is your current income. Everyone‘s situation is different so you might also want to discuss with an insurance consultant. Calculator
Please enter your occupation
By submitting this form, you agree to the finder.com.au privacy policy
Get quotes

Speak to an adviser about insurance

Please enter your full name
Please enter a valid email address
It's important to give us a valid phone number
Gender
Smoker
Date of Birth
Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
By submitting this form, you agree to the finder.com.au privacy policy
Get quotes
William Eve
About the author
Zahra Campbell-Avenell is the Insurance Publisher for finder.com.au. Zahra leads a team of insurance experts to deliver on finder's mission to help all Australians including women make better decisions - what kind of insurance they need, when they need it - and when they don't.

Australian women are at risk of underinsurance

finder's research indicates that women are significantly less likely to protect their income in comparison to men. We analysed 7,000 income protection quotes on the finder.com.au engine and found that only 31% of quotes were taken out by women (vs 69% taken out by men).

Similarly, a survey of 1150 Australian women conducted by Westpac showed that 6 out of 10 women did not have life insurance, with 5 out of 10 stating their partners does not have it either2.

Women now contribute a great portion of combined household income to their families. These families could experience great financial hardship if this steady income was suddenly taken away.

Not interested it seems

The study showed that almost seven out of ten women (68%) who did not have life insurance, were not interested in taking out life insurance at all. It is vital as a women that you do not underestimate your value to the household both in terms of financial contribution and the role you play within the household.

Does life insurance make sense if you are a stay-at-home mum?

If for instance you are a stay at home mum, there are life insurance options that make sense. If you spend time taking care of the kids, then a permanent nanny may need to be hired, or your partner may need to take time off work if something happens to you. While it is an unpleasant thought, it is important for women to consider their own situation and how their family may be impacted on if they were to pass away.

When do women take out life insurance?

Our research4 found the two key triggers for woman to take out life insurance are are:

1. Getting married

2. Having kids

Benefits of women’s life insurance

There are many benefits that come with having life insurance cover for women. Some of these benefits include:

  • Peace of mind and financial security for loved ones: With life insurance cover in place you will be able to enjoy the peace of mind that your family has financial security in the unfortunate event of your demise. This means that in the event of your death they will not be left to deal with financial anxiety in addition to dealing with their grief.
  • Selection of Beneficiary: The policyholder is able to select up to 5 beneficiaries, who will get the insured amount after the policyholder passes away. Policyholders can choose both friends and family members to be the policy beneficiaries. This selection can be adjusted at any time.
  • A Choice of Plans: The vast number of life insurance providers and products on the Australian market means that you have a greater chance of finding an affordable policy with all of the necessary benefits and features for your situation. You may also choose different types of life insurance to accommodate for your specific needs.
  • A Wide Range of Optional Benefits: Most policy providers understand that everyone’s needs are different, and hence they provide a wide range of optional benefits that can be bought for a higher premium rate. Some providers even provide additional benefits at no extra cost.

Different types of life insurance available to women

  • Term Life Cover: Offers a lump sum payment to your beneficiaries in the event of your death or if you are diagnosed with terminal illness (less than 12 months to live).
  • Income Protection: Provides a regular benefit of up to 75% of your income if you become unable to work due to serious illness or injury.
  • Total and Permanent Disability Insurance: Pays a lump sum amount if you are unable to work due to disablement which is deemed total and permanent.
  • Trauma Insurance: Provides a lump sum payment if you suffer a trauma condition as defined by your insurance policy. Common Trauma conditions that are often covered include cancer, heart attacks, open heart surgery, brain tumours and stroke.

Life insurance cover for women in all stages of life

Younger woman

Young women may not have dependents, only a few small loans, a relatively low income and very few other financial commitments. It may seem as if life insurance will not be necessary here, but what happens if you become ill or are hospitalised and are unable to work for a long period of time? Will your parents or friends be able to support you? In this instance, it can be worth considering Income Protection Insurance.

Middle age

Middle age women are generally experiencing an increase in income, possibly have taken out a mortgage and are in the process of repaying it and they may have started a family. Here the need for life insurance is most prevalent, as you have people who are dependent on you and you have large debts to be repaid.

40's and 50's

Women whom are in their 40’s and 50’s could be at the peak of their employment in terms of income, they may have paid off or almost completely paid off a mortgage and have children whom are entering university or becoming financially independent. Here life insurance policies are to help with a secure retirement, and to pay off any last debts or fees for your children. Life insurance policies may be taken out to ensure that you and your family are able to continue to live a comfortable lifestyle. It can also be worth considering Trauma Insurance Policies to ensure their is cover in place should you suffer a critical condition.

How much life insurance coverage is adequate for women?

Everyone’s situation is different and you should reflect on your own circumstances and needs before purchasing life insurance coverage. Some of the things that you should consider when deciding on how much coverage you should take out:

  • The cost of feeding, clothing and educating your kids if they are still dependent on you.
  • The possibility of someone in your family facing a reduced income due to time spent on looking after your kids.
  • Whether childcare will be necessary, and the costs associated with that.
  • How much you still owe on long financial commitments such as a mortgage, car loans, credit card debts etc.
  • The loss of your own income and how your family will make up for that to pay for bills, accommodation costs, food and essential day to day payments.
  • Funeral expenses can be expensive and you may need to factor this into your calculations.
  • Whether or not you’d like to leave money for your kids to help with payments towards a house or car when they are older.

Tips for women when comparing

  • Understand how parental leave can impact cover. If you have TPD cover on your policy then you'll need to be working at the time of an incident in order to be covered. Likewise with income protection.
  • Make sure you're not over or underinsured. Use a calculator to work out how much you really need.
  • Compare women focused conditions. If taking out 'trauma cover' in your policy make sure you look at it's coverage for illness related to women e.g. breast cancer.
  • Protect the future of your children: Some companies offer specialised Child Cover options on standard policies that you may want to consider. This is usually in the form of a lump sum payment if your child suffers a traumatic event or passes away.

Compare life insurance or income protection


1 finder survey August 2017

2 Roy Morgan: The rise of the female breadwinner, 2017

3Ruby Connection, November 2012

4 finder survey October 2018

Zahra Campbell Avenell

Over the last year, finder has helped more than 1.5 million Australians understand insurance, from health, life and travel to car and business, home and pet. As the Insurance Publisher, Zahra leads a team of insurance experts to deliver on finder's mission to help Australians make better decisions - what kind of insurance they need, when they need it - and when they don't - as well as the kinds of things to look out for when signing up for a policy.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

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 Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site