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Do I need life insurance?

Take our 1 minute quiz to find out if you need life insurance based on your circumstances.

Quiz: Do I need life insurance?

When to think about taking out life insurance

People think about life insurance around these life stage changes:


Office worker

New job


Wedding ring

Married


Baby cloth

Had a baby


House

Bought a house


Investment

Made a large
investment


Money bag

Come into a large
amount of money

The most common are:

  • Having children. Parents-to-be often consider life cover to be a high priority when having kids enters their life.
  • Buying a house. Getting a mortgage is the biggest financial commitment most people make in their lives. It stands to reason that you'd consider protecting yourself ahead of your first mortgage payment.
  • Employment circumstances change. Going self-employed is one example of a time you'd want to consider life cover, especially if you lose other types of insurance that were tied to your former employers.
  • Find the right cover for your needs
    This super-quick quiz takes less than 1 minute ⚡

    Finder survey: What types of insurance do Australians have?

    Response
    I don't have any of the above insurance60.54%
    Life insurance32.52%
    Income protection insurance18.38%
    TPD insurance14.32%
    Source: Finder survey by Pure Profile of 1110 Australians, December 2023

    Based on where I'm at in life, what type of cover do I need?

    Everybody is different and cover requirements will change based on the events you encounter at different life stages. But still, it's worth a look at a more detailed overview of key times many decide to take out cover based on their life stage.

    Life Insurance Graph

    Different types of life insurance

    Here are the main types of life and income protection cover you can get:

    Shield with tick life insurance icon

    Life cover.

    Term life insurance provides a lump sum benefit to your beneficiaries in the event of death or after the diagnosis of a terminal illness. You can get this insurance as a standalone policy, or bundled with more cover options.

    tpd

    TPD insurance.

    Total permanent disability (TPD) insurance provides a lump sum benefit if the policyholder suffers a disability as defined in their policy.

    trauma

    Trauma insurance.

    Provides a lump sum benefit if the insured suffers a medical trauma that is specified in their policy. Most policies will cover up to 50 different conditions including strokes, cancer and heart attacks.

    Tombstone icon

    Funeral insurance.

    Funeral insurance provides a lump sum benefit to cover funeral costs and other outstanding expenses. The maximum amount of cover that can be taken out is usually about $15,000.

    income protection

    Income protection insurance.

    Income protection offers an ongoing benefit of up to 70% of the policyholder's regular income if they are forced to take time off work due to illness or injury. This benefit is usually paid monthly.

    How much life insurance might I need?

    The amount of life insurance you need depends on your personal circumstances, such as your age, and the type of cover you want. Start by coming up with an annual sum you'd need to cover your financial commitments. Some experts say the amount of cover you'd want is at least 10 times your annual salary. But it's really up to you to decide how much your family would be comfortable with based on your situation.

    You could also check to see if you already hold some life cover, such as via employment benefits. See how much that would pay out to your dependents and then calculate how much extra they might need.

    Compare life insurance quotes from more direct brands

    Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Claims Acceptance Rate Average Claim Time Sum Insured
    NobleOak Life Insurance
    Finder AwardBonus
    NobleOak Life Insurance
    $25,000,000
    74
    $25,000,000
    96.90%
    1.1 months
    $24,483 million
    Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate.

    ⭐ Current offer: Get two months free on all cover types apply by 14 June 2024. T&Cs apply.
    Medibank Life Insurance
    $2,500,000
    70
    $2,500,000
    Data not available
    Data not available
    Data not available
    Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.

    ⭐ Current offer: Save 10% on your first year of Medibank Life Insurance when you apply by 1 July 2024. T&Cs apply.
    TAL Accelerated Protection Life Insurance
    No set limit
    73
    Not stated
    Data not available
    1 months
    $249,285 million
    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.
    RACWA Life Insurance
    $25,000,000
    74
    $25,000,000
    96.90%
    1.1 months
    $24,483 million
    Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance. RAC is also WA-based but services all of Australia.
    ahm Life Insurance
    $1,500,000
    55
    $1,500,000
    Data not available
    Data not available
    Data not available
    Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests needed.

    ⭐ Current offer: Get 10% off your first year of ahm Life Insurance when you apply by 1 July 2024. T&Cs apply.
    AAMI Life Insurance
    $1,500,000
    65
    $1,500,000
    Data not available
    3.1 months
    $37,768 million
    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: Take out a new AAMI Life Insurance policy and get $100 eGift card after your first 4 months of cover. T&Cs apply. Ends June 30, 2024.
    Suncorp Life Insurance
    $1,500,000
    65
    $1,500,000
    Data not available
    3.1 months
    $37,768 million
    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: Take out a new Suncorp Life Insurance policy and get $100 eGift card after your first 4 months of cover. T&Cs apply. Ends June 30, 2024.
    Real Family Life Cover
    $1,000,000
    64
    $1,000,000
    88.90%
    2.4 months
    $53,238 million
    Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout.

    ⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.
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    Why compare life insurance with Finder?

    • You pay the same price as buying directly from the life insurer.

    • We're not owned by an insurer (unlike other comparison sites).

    • We've done 100+ hours of policy research to help you understand what you're comparing.

    Why you can trust Finder's life insurance experts

    free

    We're free

    You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
    expert advice

    We're experts

    Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
    independent

    We're independent

    Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
    help

    We're here to help

    Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

    Frequently asked questions

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      Having the right life insurance policy is invaluable if something happens to you unexpectedly. Find out what makes your policy worthwhile.

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