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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

    1 - 7 of 13
    Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Claims Acceptance Rate Average Claim Time Sum Insured
    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.
    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 31 July 2024. T&Cs apply.
    TAL Accelerated Protection Life Insurance
    No set limit
    74
    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.
    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 31 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: Save up to 10% on premiums every year for the life of the policy on AAMI Life Insurance. Offer ends 30 Sept 2024. T&Cs apply.
    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: Save up to 10% on premiums every year for the life of the policy on Suncorp Life Insurance. Offer ends 30 Sept 2024. T&Cs apply.
    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

    freeYou pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
    expert adviceYou save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
    independentYou can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

    Frequently asked questions

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    Written by

    Editor

    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, WIN News, Insurance News, 7NEWS and The Guardian. 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 258 Finder guides across topics including:
    • Car, home, life, health, travel and pet insurance
    • Managing the cost of living
    • Money-saving tips

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