direct-life-insurance

Direct Life Insurance

Looking for life insurance straight from a provider? Get cover without the hassle of a financial planner.

Direct life insurance is different to traditional retail cover: it's purchased directly from an insurer, as opposed to buying through an adviser or broker. Buying direct usually only requires a limited level of medical underwriting or non at all. Direct term life insurance can be obtained:

  • Online
  • From an organisation’s branch office
  • Over the phone

Compare direct life insurance policies below

Rates last updated October 24th, 2017
Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$15,000,000
69
$0
Yes
99
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs.
$1,500,000
65
$3,000
No
80
Flexible cover options to suit your budget. New eligible customers can receive 25,000 Velocity Points. Ends 31 Oct. Min monthly premium and T&Cs apply.
$1,500,000
65
$100,000
Yes
99
Receive a discount of 10% on life insurance as a Woolworths Rewards Member. T's and C's apply.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.
$1,000,000
64
$100,000
No
99
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
$1,500,000
69
$0
Yes
99
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.

Compare up to 4 providers

online-direct (1)

Should I buy direct (without a financial planner)?

This is a matter of preference and will come down to weighing up the pros and cons of buying direct, and then deciding if it's right for you.

What are the benefits?

  • You can save time. Direct life insurance is designed for people who need life insurance but don't have the time nor inclination to go through the process of comparing products with an insurance consultant or financial planner. It fills a gap in the market for people looking for a quick solution while still receiving an adequate level of cover.
  • Immediate death cover. Direct life insurance policies often provide immediate death cover once the application has been received. You're not required to go through the entire underwriting process, which makes the purchase process more convenient if you know what you need from a policy.
  • It's easy to purchase. Most policies don't require you to undertake medical underwriting to receive approval. Cover can usually be arranged online or over the phone, ensuring the application process is fast and straightforward.
  • Bundle cover. Some insurance companies allow you to add benefits like total and permanent disablement, trauma and income protection to your policy.

What are the drawbacks?

Strangely, the same aspects that make direct life insurance very attractive can be detrimental. Buying an insurance product over the counter means that you don't have time to compare and review products with a certified financial consultant.

  • Less comparison of policy options. Purchasing through an insurance consultant enables you to review hundreds options at once.
  • More responsibility for you. You will have to read through all of the policy clauses and have a clear understanding of the policy exclusions without the assistance of a financial planner. This will involve being clear on the different definitions of for topics such as pre-existing medical conditions, the policy payment structure and specified conditions covered.
  • Cover may not be as closely tailored towards your needs. Cover may not be as closely tailored to relevant to the your needs. The benefit of purchasing through a financial planner is that the policy found through the comparison process will have benefits and features that are actually required for your situation. The comparison process can weed out expensive extras that aren't actually required.
  • Price. While not going through extensive medical underwriting may appear more convenient, it also means that the insurer may make assumptions about your health and your overall level of risk. This can also cause premium payments to be driven up.
  • An insurance broker can compare the market for you and has access to hundreds of different policy variations
  • A consultant can discuss the different components of a policy and ensure you have a clear understanding of each of the policy benefits and feature
  • A broker has the ability to source competitive premiums on policies that could potentially save the applicant thousands in the long run
  • They will assist you through the application process. While the application process may be more difficult to that of buying direct, a consultant will assist you with all of the necessary paperwork and provide help right through to policy approval

Making a claim: Direct vs Advised

Direct

When it comes to making a claim, you will need to do all the legwork yourself, liaising with doctors and chasing up your medical records. And even if you have no pre-existing conditions, the time involved can be weeks or even months, during which you will be without finances.

Advised

A financial adviser takes care of the legwork for you, dealing directly with the insurer and advocating on your behalf. So when considering buying your life insurance direct, be aware that the time saved when applying for cover can often be spent many times over at the other end of the process.

How does buying direct compare to other methods?

Three ways life insurance is sold in Australia

Direct life insurance works as the name suggests. You'll compare policies directly either on a comparison site or on the insurers website. When you make a purchase, it will be directly from the brand without any commissions going to an adviser. Here's how buying direct compares to the options you have:

Direct vs using an adviser (example): How do the policy features compare?

Provider

How they compare?Direct policyPolicy provided with advice
Medical questionsNo detailed medical examination, just simple questionsFully underwritten - you will need to go through a detailed medical and lifestyle questionnaire
OccupationNot asked forFull disclosure
Is advice provided?NoYes
Is a statement of advice provided?NoYes
Will an adviser advocate for me in the event of a claimNoYes
Can you claim with more than one policy from the same insurer?No, premiums will be refunded for an extra policyIf disclosed, additional cover can be included
ExclusionsDirect policyPolicy provided with advice
Suicide or intentional self-inflicted injury or illnessExcludedExcluded in the 13 months
Under the influence of drugs or alcoholExcluded (unless under the direction of a medical practitioner)Not excluded
Working underground or over 10 metresExcludedMaybe excluded (details are assessed when you apply)
If you mountaineer, rock climb, scuba dive or participate in dangerous activities.ExcludedMaybe excluded (details are assessed when you apply)
Flying an airplaneExcluded (unless as a passenger on a regularly scheduled flight).Not excluded

Note: The table above is purely for illustrative purposes and not indicative of a real policy. Source: Life insurance Industry Submission 64

Direct life insurance in detail

Are pre-existing conditions covered?

While direct life insurance is fast and easy to obtain, with few questions to answer and no need for medicals, this very lack of information could become a problem at claim time. That’s because direct insurers don’t ask many questions when you apply for cover, but many reserve the right to perform underwriting retroactively when you make a claim.

So if you have neglected to inform them of a pre-existing condition (quite possible, unless you have studied the fine print and are aware of the exclusions and conditions that must be declared), they are legally within their rights to deny your claim.

Consider a tailored policy from an adviser

A financial adviser knows what is and isn’t covered and would have asked you the important questions upfront. This allows you to tailor cover to your specific circumstances. Before you obtain a direct life insurance quote, make sure you do your homework.

Do any direct brands offer tailored cover?

There are some brands that offer a more tailored policy, with a more detailed questionnaire upfront.

ProviderDetails
VirginVirgin offers two types of cover: Quick & Easy and it's Tailored cover. On it's tailored option you'll need to answer extensive health and lifestyle questions when you apply.
NobleOakLife Insurance from NobleOak is full underwritten. This means you go through an extensive health and lifestyle questionnaire then your premium and cover is tailored according to your answers.

How was direct life insurance grown in Australia?

Direct life insurance is growing in popularity in Australia and is only expected to continue, with a Plan for Life report predicting that direct insurance will account for up to 40% of new products bought in the next 10 years.

Why are more customers looking at life insurance directly?

Direct life insurance is relatively new to Australian consumers and although some companies do include options such as income protection and total and permanent disability insurance, many others don't. Despite this, direct life insurance is easier to obtain and simpler because no financial planner is involved, it has fewer medical restrictions, can be obtained online, or over the phone and the cover is immediate.

Could direct cover threaten traditional purchase channels?

Despite this growth, there is a strong belief that there will always be a place for advisers in the Australian insurance industry. While the convenience of direct cover may appeal to many, there is still a number of people who would prefer to purchase through an adviser. At the end of the day there is benefits in both avenues and it really comes down to the type of buyer looking to purchase the cover.

Increased competition across market

The increase in popularity of direct insurance products means an increase in competition in the Australian market, bringing a greater selection of products to consumers each offering the most competitive premium possible. Australians are fortunate to have such a diverse market of products to choose from.

Common questions people ask about direct life insurance

Q. How long does it take to receive an online quote?

    • A. In most cases your online quote will be returned within minutes. However, to go ahead with the application you may need to answer further health, lifestyle and occupation questions.

Q. What information is required to complete an online quote?

    • A. You will need to enter your date of birth, gender, smoking status, occupation, policy type and the benefit amount you would like to receive from the policy.

Q. How long is it before the life insurance cover is active?

  • A. Once you finalise payment online for your life insurance, your cover is active.

Review featured direct life insurance products

* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking financial advice and consider your personal financial circumstances when comparing products.

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2 Responses

  1. Default Gravatar
    DebbieNovember 18, 2016

    Price of life insurance for 21 year old student and 21 year old apprentice looking for lowest cost at this age thanking you

    • Staff
      RichardNovember 21, 2016Staff

      Hi Debbie,

      Thanks for getting in touch. If you would like to get a quote for life insurance, you can do so by entering your details into the quote calculator.

      All the best,
      Richard

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