Looking for a life insurance plan? Find out what to look for before you compare.
How would your family survive financially if you were to die unexpectedly? Could they afford to pay off the mortgage, repay other debts and manage ongoing expenses like paying for utilities and groceries?
As well as an enormous emotional impact, your passing could also have a huge financial impact on their family. This is where life insurance cover comes into play. Life insurance offers peace of mind when the unexpected happens and can protect your family’s financial security well into the future. The last thing any grieving person wants to have to worry about is money, and life insurance guarantees that your family won’t have to do so.
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What are the different types of life insurance plans?
- Term life insurance. Also known as death cover, this type of insurance pays a lump sum benefit to those named in your policy when you die. It is designed to lessen the financial impact of your death.
- Income protection insurance. If you suffer a serious illness or injury that prevents you from working for an extended period of time, income protection insurance offers a replacement source of income. It insures you for 75% of your regular income and provides an ongoing benefit until you get back on your feet.
- TPD insurance. Total and permanent disability insurance pays out a lump sum amount if you become totally and permanently disabled and are therefore unable to ever work again.
- Trauma insurance. Also known as critical illness insurance, this type of insurance will pay you a lump sum should you suffer a serious illness or injury such as a heart attack, stroke, major head trauma or severe burns.
- Accidental death insurance. Accidental death cover provides a lump sum benefit payment if you die or suffer a serious injury as a result of an accident, for example a plane crash.
- Funeral insurance. This provides a lump sum payment to help your beneficiaries cover the cost of your funeral when you die.
Life insurance providers on finder.com.au
- AIA Australia is a global life insurance company that offers a range of comprehensive and flexible life cover policies suited to Australian conditions.
- AMP was established in 1849 and offers life insurance, income protection and disability insurance. Its products are regularly reviewed to ensure cover is up-to-date and competitive.
- Asteron Life Insurance offers a wide range of cover, including life cover, trauma insurance, TPD insurance, income protection and business expenses insurance.
- AXA Australia has been serving Australians for more than 100 years and is now part of the AMP Group. It offers a full suite of life insurance products.
- BT Life Insurance’s history in Australia dates back to 1969. Whether you’re looking for life cover, trauma insurance, TPD insurance, income protection or business expenses insurance, BT has a product for you.
- ClearView’s dedicated team has been working to meet the financial needs of Australians since 1976. It offers a wide range of life insurance cover, including accidental death insurance and children’s insurance.
- CommInsure Life Insurance is part of the Commonwealth Bank Group and has links stretching back more than 100 years. It offers life insurance cover both inside and outside of super.
- Macquarie Life Insurance was introduced to Australia in 1990 and is part of the globally-strong Macquarie Group. It offers a range of flexible and comprehensive life insurance cover options.
- Metlife Insurance has been in the insurance industry for more than 140 years. It entered the Australian market in 2005 and has more than 90 million customers worldwide.
- MLC offers its life insurance products through an extensive network of financial advisers. It offers life cover, trauma insurance, TPD insurance, income protection and business expenses insurance.
- OnePath Life Insurance is relatively new in Australia but has links to the life insurance industry going back more than 130 years. It offers comprehensive products, simple and affordable plans, group insurance products and business insurance products.
- The Suncorp Group includes well-known insurance brands like Shannnons, Apia, Vero, AAMI, GIO and Suncorp itself. Suncorp Life offers an extensive range of products which are available with or without advice.
- TAL Life Insurance has origins dating back to 1869 and offers comprehensive life cover, trauma insurance, TPD insurance, income protection and business expenses insurance.
- Zurich Life Insurance is part of the Zurich Financial Services Group, which has a presence in 170 countries around the world. It offers a full suite of life insurance products available with advice.
- NobleOak Life Limited offers a range of simple and straightforward life insurance products that can be purchased direct. Family plans are also available.
- Real Insurance offers a Family Life Cover policy that includes additional options like cover for your children, TPD cover, serious illness cover and accidental death cover.
Top tips to find the most suitable life insurance plans
- Understand the different types of cover. The sheer number and variety of life insurance plans available can be quite daunting. Take the time to understand what each type of cover provides and figure out which policy or policies will be right for you.
- Assess your cover needs. Being either under- or over-insured has their respective downsides, so it is important to know what you need. Take a look at your personal situation and determine what you need cover for and what you don’t. Also take into account your number of dependents, how much your regular income is and a range of other factors.
- Compare policies. Don’t simply go with the first policy you receive a quote for. It’ll be worth your while in the long run to take the time to compare multiple policy options and see how each stacks up. Finder.com.au is a great resource for comparing life insurance policies, so consider the benefits, exclusions and limits offered by a number of competing policies.
- Read the terms and conditions. Everyone knows that life insurance policy documents don’t exactly make for riveting reading material but examining the paperwork attached to each policy is a must. This is the best way to ensure you know exactly what is covered and to prevent you ending up with a nasty surprise somewhere down the line.
- Seek expert advice. When you’re shopping for life insurance, make an appointment with an insurance consultant. They will be able to give you expert advice tailored to your needs, ensuring you end up with the right level and type of cover for your situation.
Frequently Asked Questions About Life Insurance Plans
Q. How much cover do I need?
- A. This will really depend on your personal situation. Factors including your regular income, your number of dependents and your debts and liabilities should all be taken into consideration.
Q. What is not covered in the policy?
- A. Each life insurance policy will have a range of illnesses, injuries and circumstances that simply won’t be covered. Examine the exclusions listed on each policy in the product disclosure statement.
Q. How long until my policy takes effect?
- A. It generally takes two to four weeks for a policy to be underwritten and cover put in place. However, some insurance providers will offer immediate death cover once your application has been accepted.
Q. What will influence the cost of my premiums?
A. Factors such as your age, gender, occupation, lifestyle (eg if you’re a smoker) and medical history can all influence the cost of premiums. You may be able to receive a discount if you apply for a joint policy with your spouse or perhaps look at bundling two types of life insurance cover together.
Q. How do I compare policies?
- A. Use finder.com.au’s comparison tools to weigh up the pros and cons of competing policies. If you’d like expert advice tailored to your needs, seek help from an insurance consultant.
If you’re the main breadwinner for your family or if you have young children, taking out life insurance is something you must consider. Life insurance offers peace of mind and protects your family’s financial security against unexpected disasters. Compare life insurance policies at finder.com.au and seek advice from an insurance consultant to find the perfect policy for you.Back to top
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking financial advice and consider your personal financial circumstances when comparing products.