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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.
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.
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.
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.
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).
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1 - 8 of 13
Finder survey: What events make Australians take out or adjust their life insurance coverage?
Response
None of the above
48.29%
Having a baby
27.48%
Retirement
19.46%
Buying a home
17.3%
Getting married
16.4%
Starting a new job
7.93%
Your children moving out of home
5.59%
Buying a car
4.59%
Moving home
4.59%
Starting university education
2.43%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
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 20 products and gave each one a score between 1 and 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.
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 Insured
30-year-old
40-year-old
50-year-old
60-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 Insured
30-year-old
40-year-old
50-year-old
60-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.
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 246 Finder guides across topics including:
Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
Gary Ross's expertise
Gary Ross has written 699 Finder guides across topics including:
Find out what determines the price of life insurance and what you can expect to pay each week to be covered.
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