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Switching life insurance policies

It's a good idea to review your cover on a regular basis to make sure you're getting the best policy for your current life situation. Here's a few things to keep in mind before switching life insurance policies.

As your life circumstances change, your life insurance may need to be updated. You could amend your life cover with your current insurer, or switch by cancelling your insurance and looking for a better deal.

Before settling on a choice that matches your needs, there are some important things that you need to take into consideration. These include:

  • Long waiting period. You may find that there is a fairly lengthy waiting period before you can claim on your new policy. Check carefully before you make the switch.
  • Pre-existing conditions. If you have developed a medical condition check whether or not your new insurer will cover it.
  • Reputation. Make sure that you do your research and find about more about the company and how well known/experienced the company is when it comes to life insurance services.

Why do people change their life insurance policies?

The most common reason for people to switch life insurance policies is when they enter a new life stage or change of lifestyle.

Have you had any major life changes recently?


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

Other reasons include:

  • Reaching the end of term. Generally, when you take out life insurance in Australia, you'll be asked to select the length of time you want cover for. This period of time is what is referred to as the term. Generally once someone reaches the end of a term, they will reassess their situation and need for life insurance.
  • Financial reasons. One of the reasons why people decide to switch life insurance policies is because of the cost of premiums. This can happen for several reasons including the premiums becoming too expensive due to age or the amount being cover becoming excessive due to changes in the family dynamic (such as children no longer being financially dependent).

Get life insurance quotes from these direct brands

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.
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.
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.
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.
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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Finder survey: What events make Australians take out or adjust their life insurance coverage?

Response
None of the above48.29%
Having a baby27.48%
Retirement19.46%
Buying a home17.3%
Getting married16.4%
Starting a new job7.93%
Your children moving out of home5.59%
Buying a car4.59%
Moving home4.59%
Starting university education2.43%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023

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.

Can I have two life insurance policies at once?

Yes, is the short answer. There are a number of different reasons why you might need to do so. However, although you can have more than one life insurance policy on your own life, it can be an expensive way of giving yourself the cover you need.

If you can find a way of only having only one life insurance policy to look after all your needs, you should be able to finish up with the same amount of cover at a much lower cost.

Speak to an insurance specialist to find the right cover for you

What do I need to consider when obtaining multiple life insurance plans?

Taking out multiple life insurance policies is perfectly acceptable and can actually provide increased peace of mind and protection for you and your loved ones. However, there are some things that you need to bear in mind if you are considering taking out multiple life insurance plans:

  • Managing multiple plans could be more difficult. Although having multiple life insurance plans in place does offer greater security and peace of mind, it can also cause more confusion and become more difficult to manage. The more life insurance plans you have, the more time you will have to put into managing and reviewing them, so you should bear this in mind when considering multiple plans.
  • The cost implications of multiple plans. If you take out multiple life insurance plans, it also means that you will have to pay a multiple of the specified premiums, which can be costly in the long-term.
  • Time implications. When you take out multiple life insurance plans, you will have to dedicate more time not only to finding suitable plans and providers but also in terms of reviewing and checking your life insurance plans and coverage.

What's the average cost of life insurance?

One of the main reasons people switch life insurance is to get a cheaper premium. Compare your current premium to the average cost of life insurance*.

Average life insurance rates for men

Amount Insured30-year-old40-year-old50-year-old60-year-old
$200,000$4.16$5.10$12.26$41.62
$500,000$9.33$12.19$27.92$96.00
$1,000,000$17.38$22.88$52.98$177.24

Average life insurance rates for women

Amount Insured30-year-old40-year-old50-year-old60-year-old
$200,000$3.20$4.01$9.38$26.76
$500,000$6.85$9.48$21.19$61.51
$1,000,000$12.65$17.69$40.08$116.34

*Average costs for a non-smoker with no medical conditions and earning a gross annual income of $80,000. Quotes researched as of March 2021.

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