Life Insurance Beneficiary Rules Australia

How we calculate Life Insurance Finder Scores

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What different scores mean

9+

Excellent

These products offer great value, with a good score across both features and price.

7+

Great

These are competitive products, though they didn't quite get top scores.

5+

Standard

These products might offer less value or command a higher premium than others in the market.

0+

Basic

These products might only offer a basic set of features or aren't very competitive on price.

What is a life insurance beneficiary?

A life insurance beneficiary is the person, or persons, you nominate to receive your life insurance payout when you die.

You choose your beneficiary when you take out a policy (though you can change it further down the line) and you're able to select how much you'd like each person to receive, if you have more than one person you'd like to nominate.

• Who is eligible to become a life insurance beneficiary?

  To receive the payout, a life insurance beneficiary must be over the age of 18. If they're under this age when you pass away, it can usually be held with a nominated trustee until they reach 18. This is usually a spouse or family member.

How to change a life insurance beneficiary

Contact your life insurer

Changing life insurance beneficiary or beneficiaries is fairly straightforward for policyholders. Contact your insurer and let them know you'd like to make changes to who receives the payout.

Fill out the necessary documents

Most insurance providers will require you to fill out a change of beneficiary form. You can usually do this online; others will require you to print them out and mail them through to them.

Send to the insurer

Send the updated beneficiary information to your insurer. They should confirm with you when they've received and updated your nominated life insurance beneficiaries.

How are life insurance benefits allocated?

Life insurance benefits can be allocated among your beneficiaries however you wish. Below is an example of how you might allocate your life insurance payout if you had four beneficiaires:

How to find out if you're the beneficiary of a life insurance policy

If you think you're the beneficiary of an unclaimed life insurance policy, you can do the following:

1. Do an unclaimed life insurance search via ASIC unclaimed money.
2. Find and contact the life insurer (if your name appears in the search).
3. Begin the claims process.

Who gets the life insurance payout if the beneficiary is dead?

Another beneficiary

If a beneficiary you have nominated dies, you should contact your insurer and nominate someone else. Remember, don't assume the benefit will be automatically reallocated if you have other nominated beneficiaries – it might not. You'll need to contact the insurer and do that yourself.

The people in your Will

If you don't nominate another beneficiary, your life insurance payout will go to your estate and be distributed according to your Will, provided you have one in place. If you die without a Will, you leave what is called an "intestacy" which means your payout will be distributed by the state government based on a legal process.

Is there a difference between life insurance and super beneficiaries?

Yes, if you take out life insurance through super, you need to be aware of the following:

• The benefit goes to the trustee first. A superannuation life insurance benefit payment will be paid to the fund trustee, who will then distribute it to the beneficiaries. This can result in delays.
• A binding death nomination. This means the super fund trustee must pay your life insurance benefit to the person or persons you nominate as your beneficiary. You need to make a binding death nomination with super or the trustee will distribute the benefit to your dependents as they see fit, which may not necessarily be as you'd like.
• Tax may apply Benefit payments may be subject to tax depending on whether the beneficiaries are defined as financially tax dependent or not, whether it is paid as a lump sum or income stream and whether the super is tax-free or taxable, and whether the super fund has already paid tax on the taxable component.

How does policy ownership work?

When you take out a life insurance policy, you'll often have a few different ownership options. This determines who has total control over the policy. For example, the policy owner (or policyholder) can change the beneficiaries on the policy. They're also responsible for paying the premiums.

The most common policy ownership options include:

Compare life insurance quotes from these direct brands

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Product	Finder Score	Maximum Cover	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover	Reward
Promoted Finder score 9.9 Excellent TAL Accelerated Protection Life Insurance Finder AwardBonus	Finder score 9.9 Excellent	Maximum Cover No set limit	Funeral Benefit $25,000	Optional TPD Cover $3 million (maximum cover)	Optional Trauma Cover Yes		Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older). ⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.	Get Quote More info Compare product selection Compare	loading
Promoted Finder score 9.2 Excellent NobleOak Life Insurance	Finder score 9.2 Excellent	Maximum Cover $25 million	Funeral Benefit $25,000	Optional TPD Cover $5 million (maximum cover)	Optional Trauma Cover Yes		Our verdict: Highly commended in the 2025 Finder Life Insurance Awards, good value for money, simple application process and a high claims acceptance rate. It's also the cheapest life insurer for those aged between 30-40.	Get Quote More info Compare product selection Compare	loading
Promoted Finder score 9.6 Excellent Medibank Life Insurance	Finder score 9.6 Excellent	Maximum Cover $2.5 million	Funeral Benefit $15,000	Optional TPD Cover $1.5 million (maximum cover)	Optional Trauma Cover Yes		Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. It also won Most Loved, Best Value and Legendary Service categories in the Finder 2024 Customer Satisfaction Awards. ⭐ Current offer: Save 10% on your first year of Medibank Life Insurance when you apply by 31 July 2025. T&Cs apply.	Get Quote More info Compare product selection Compare	loading
Finder score 8.2 Great ahm Life Insurance	Finder score 8.2 Great	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes		Our verdict: ahm offers a simple application process. Be approved online or over the phone. No medical or blood tests needed to apply. ⭐ Current offer: Get 10% off your first year of ahm Life Insurance when you apply by 31 July 2025. T&Cs apply.	Get Quote More info Compare product selection Compare	loading
Finder score 7.5 Great Real Life Insurance Bonus	Finder score 7.5 Great	Maximum Cover $2 million	Funeral Benefit $20,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes		Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. ⭐ Current offer: Get 10% cash back of the premiums you've paid after your 12-month anniversary with The Real Reward™.	Get Quote More info Compare product selection Compare	loading
Finder score 6.8 Standard Zurich Ezicover Life Insurance Bonus	Finder score 6.8 Standard	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover	Optional Trauma Cover No		Our verdict: Good if you want a cheap policy from a well-regarded insurer – its 98% claims acceptance rate is higher than any other provider on Finder. Zurich keeps things simple: unlike others, it doesn’t go in for optional add-ons such as TPD or trauma cover. ⭐ Current offer: Policy discounts include 10% off for your partner if you sign up for a joint policy. You can also get 5% off income protection if you buy it alongside your life cover.	Get Quote More info Compare product selection Compare	loading
Finder score 6.4 Standard AAMI Life Insurance Bonus	Finder score 6.4 Standard	Maximum Cover $1.5 million	Funeral Benefit $10,000	Optional TPD Cover	Optional Trauma Cover Yes		Our verdict: There’s flexibility with AAMI as you can add another adult to your cover, with a competitive limit of $1.5 million. Easy application process with no medical exams. ⭐ Current offer: Save up to 10% on premiums every year for the life of the policy on AAMI Life Insurance. Offer ends 31 July 2025. T&Cs apply.	Get Quote More info Compare product selection Compare	loading
Finder score 6.4 Standard Suncorp Life Insurance Bonus	Finder score 6.4 Standard	Maximum Cover $1.5 million	Funeral Benefit $10,000	Optional TPD Cover	Optional Trauma Cover Yes		Our verdict: Competitive maximum cover limit of $1.5 million. Suncorp lets you change your cover amount by up to $100,000 after a big life event, such as having a baby. ⭐ Current offer: Save up to 10% on premiums every year for the life of the policy on Suncorp Life Insurance. Offer ends 31 July 2025. T&Cs apply.	Get Quote More info Compare product selection Compare	loading

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Finder Score - Life Insurance

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 30 products and gave each one a score out of 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read full Finder Score methodology

Or if you prefer, speak to an insurance specialist to help you find personalised cover

Life insurance beneficiary rules FAQs

• Should I still have an estate plan or Will?

  Yes, while you should be able to nominate your beneficiaries when you take out a policy, having an up-to-date Will in place is a good backup. A Will not only directs the proceeds of your life insurance to the right people should you forget to change or nominate a beneficiary but it also ensures the correct distribution of the other assets that make up your estate.

  A comprehensive estate plan would also cover circumstances such as power of attorney, where you nominate another person to make decisions on your behalf, should you be unable to do so.

• When might I need to update my life insurance beneficiaries?

  There are lots of stages in your life where you might need to update who will receive your life insurance beneficiary. These could include:

  • Death of a beneficiary. While it's never a pleasant thought, unexpected deaths can happen. The loss of a child, other family member or close friend could mean an adjustment to your nominated beneficiary.
  • Birth of a child. The arrival of a new child to your family could mean an adjustment to your beneficiary nomination is needed. Similarly, it could mean that you need to reconsider the sum insured in your policy.
  • Divorce or separation. If your spouse was your beneficiary, you may want to change your beneficiary if you get divorced or separate.

• How do I make sure the money gets to the right person?

  When you take out a life insurance policy, you'll nominate who you want to receive the life insurance benefit. That may well change over time, particularly if you take out cover when you're young, so it's important to review your policy regularly. Making changes is usually a straightforward process, unless you hold life insurance cover through super – in which case, you'll need to make a binding death nomination.

• What details will I need to provide when nominating a beneficiary?

  You'll need to have the following details of the person or persons who are going to be your beneficiary:

  • Full name
  • Residential address
  • Their relationship to you
  • Date of birth
  • Sex
  • The percentage split (if the benefit will be divided)

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 590 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
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James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 185 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips