Do I need life insurance?

How we calculate Life Insurance Finder Scores

Read full methodology

What different scores mean

9+

Excellent

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.

When to think about taking out life insurance

For some, it's a no-brainer, for others, it's a head-scratcher.

Determining if or when you need life insurance is not as easy a question as it sounds. It means having to consider a time when you're no longer here or can no longer work. According to NobleOak, 60% of Australians now hold some form of life insurance or income protection insurance.

Whether you're 21 and single or 50 and married with children, different life stages call for different outcomes. Here are some of the most common life stages where people begin thinking about life insurance:

• You landed a new job. A new role with a new salary can prompt many Australians to consider income protection insurance. This allows you and any dependents to maintain your lifestyle if you were no longer able to work due to sickness or injury.
• You're self-employed. If you work for yourself, income protection can be vital, as self-employed workers don't receive workers' compensation.
• You're newly married. If you've recently gotten married, you may want to purchase life insurance to protect your spouse if something were to happen. This ensures they'd be able to maintain their current lifestyle and keep up with major bills and expenses.
• You've had a baby. Becoming a parent is a major milestone for many. But it also means you now have someone depending on you. Life insurance ensures your child can continue to live comfortably if you pass away or become seriously injured or sick.
• You've bought a house. Between mortgage repayments and keeping up with repairs, purchasing a house is a costly investment. Life insurance means your loved ones will be able to financially keep up with these financial demands.
• You're young and healthy. Younger Australians may want to get ahead and take out a policy when they're young to secure lower premiums. It can also help you avoid exclusions later on as you age and your health condition changes.

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.

Different types of life insurance

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

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 insurance.

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

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.

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 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.

Don't I get life insurance through my superannuation?

Yes, life insurance is automatically added to your super account if you're over 25 and have $6,000 or more in your account. The premiums for this insurance are deducted from your super balance unless you opt out and cancel your policy. Death cover, TDP cover and income protection cover are available through your superfund.

While many Australians choose to rely on this insurance, it might not give you the flexibility you need. The major benefit of purchasing a life insurance policy directly from an insurer is that you'll have greater choice in taking out the exact type of cover you need.

It's also worth noting that paying for life insurance through your super reduces your retirement balance, which can be an issue if you have no other investments that provide passive income.

What to consider before purchasing life insurance

Before you start shopping around on life insurance, there are a few things to keep in mind. By law, life insurers are required to provide prospective customers with a product disclosure statement (PDS). This gives you an opportunity to learn everything you are covered and not covered for.

Other things to investigate during your search include:

• The waiting periods that apply before you can make a claim
• What the process is for making a claim
• What to do if you need to make a complaint about a claim or a decision

Compare life insurance quotes from more direct brands

{"userFilters":[{"componentType":"MULTI-SELECT CHECKBOX","options":{"comparator":"contains","includeAllSelection":false,"defaultMatcher":"ANY","values":["8.95-10","6.95-8.94999","4.95-6.94999","0-4.94999"],"fields":[{"label":"[[FINDER_SCORE_BADGE|9+]] Excellent: 9+","value":"8.95-10","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|7+]] Great: 7+","value":"6.95-8.94999","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|5+]] Standard: 5+","value":"4.95-6.94999","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|0+]] Basic: 0+","value":"0-4.94999","comparator":"range"}]},"dataSelector":{"recordType":"PRODUCT","fieldCode":"FINDER_SCORE.FINDER_SCORE"},"dataType":"NUMBER","label":"Finder Score","queryParameter":"finderScore"},{"config":{"MULTISELECT":true,"VALUES":"TPD cover,Trauma cover,Children's Insurance,No optional"},"dataSelector":{"recordType":"product","fieldCode":"FILTERS.OPTIONAL_ADD_ONS"},"dataType":"TEXT","label":"Optional Extras","order":1},{"config":{"VALUES":"Yes,No"},"dataSelector":{"recordType":"product","fieldCode":"FEATURES.FULLY_UNDERWRITTEN"},"dataType":"TEXT","label":"Fully Underwritten","order":2},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"FILTERS.TERMINAL_ILLNESS_BENEFIT_2"},"dataType":"MONEY","label":"Cover Amount","order":3},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"FILTERS.TERMINAL_ILLNESS_BENEFIT"},"dataType":"MONEY","label":"Terminal Illness Benefit","order":4},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"FEATURES.FUNERAL_BENEFIT"},"dataType":"MONEY","label":"Funeral Benefit","order":5},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"FILTERS.MAX_ENTRY_AGE"},"dataType":"NUMBER","label":"Maximum Entry Age","order":6},{"config":{"MULTISELECT":true,"VALUES":"Child cover,Interim accident cover,Counselling benefit,Guaranteed renewability,Increase cover without a medical,Premium suspension "},"dataSelector":{"recordType":"product","fieldCode":"FILTERS.INCLUDED_BENEFITS"},"dataType":"TEXT","label":"Benefits","order":7},{"dataSelector":{"recordType":"UI_FILTER_COMPONENT","fieldCode":"SPECIAL_OFFERS"},"dataType":"BOOLEAN","label":"Special offers","componentType":"SpecialOffersFilter","config":{"VALUES":"1","fields":[{"value":"rewards_exclusive","label":"Finder Rewards & exclusives"},{"value":"all_offers","label":"All offers"}]},"options":{"comparator":"eq"},"queryParameter":"special-offers"},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"GENERAL.PROVIDER_ID"},"dataType":"UUID","label":"Providers","order":8},{"config":{"VALUES":"Apply directly online,Underwritten via a broker"},"dataSelector":{"recordType":"product","fieldCode":"FEATURES.POLICY_TYPE"},"dataType":"TEXT","label":"Product Type ","order":null},{"config":{"VALUES":"0"},"dataSelector":{"recordType":"UI_FILTER_COMPONENT","fieldCode":"FULL_MARKET"},"dataType":"FULL_MARKET","label":"More products","queryParameter":"full-market"}],"niche":{"currencySymbol":"$","decimalPoint":".","decimalPlaces":"2","thousandsSeparator":",","filterBoundsMap":{"product.FILTERS.OPTIONAL_ADD_ONS":null,"product.FEATURES.FULLY_UNDERWRITTEN":null,"product.FILTERS.TERMINAL_ILLNESS_BENEFIT_2":{"minimum":"100000","maximum":"25000000"},"product.FILTERS.TERMINAL_ILLNESS_BENEFIT":{"minimum":"100000","maximum":"25000000"},"product.FEATURES.FUNERAL_BENEFIT":{"minimum":"0","maximum":"30000"},"product.FILTERS.MAX_ENTRY_AGE":{"minimum":"55","maximum":"79"},"product.FILTERS.INCLUDED_BENEFITS":null,"product.GENERAL.PROVIDER_ID":null,"product.FEATURES.POLICY_TYPE":null}},"prefilled":false,"experimental":false}

8 of 22 results

Finder Score	Maximum Cover	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover
Promoted Finder score 9.9 Excellent TAL Accelerated Protection Life Insurance Finder Award	Finder score 9.9 Excellent	Maximum Cover No set limit	Funeral Benefit $25,000	Optional TPD Cover $3 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get up to 15% off your TAL Life, TPD or Critical Illness policy with the TAL Health Sense Discount. Eligibility criteria apply. T&Cs apply.	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).	Get Quote View details Compare product selection Compare	loading
Promoted Finder score 9 Excellent Medibank Life Insurance	Finder score 9 Excellent	Maximum Cover $2.5 million	Funeral Benefit $15,000	Optional TPD Cover $1.5 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get 10% off when you purchase by 30 November 2026. T&Cs apply.	Get Quote View details Compare product selection Compare	loading
Promoted Finder score 8.5 Great ahm Life Insurance	Finder score 8.5 Great	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get your first month free. Purchase by 30 Nov 2026. Plus, ahm health members save 10% each year. T&Cs apply.	Get Quote View details Compare product selection Compare	loading
Finder score 9.5 Excellent NobleOak Life Insurance	Finder score 9.5 Excellent	Maximum Cover $25 million	Funeral Benefit $25,000	Optional TPD Cover $5 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get 2 months free with NobleOak Life Insurance. Offer ends 30 Nov 2026. T&Cs apply.	Our verdict: Highly commended in the 2026 Finder Life Insurance Awards, offering up to $25 million in life cover, one of the highest payouts available.	Get Quote View details Compare product selection Compare	loading
Finder score 7.5 Great AAMI Life Insurance Most Loved	Finder score 7.5 Great	Maximum Cover $1.5 million	Funeral Benefit $10,000	Optional TPD Cover	Optional Trauma Cover Yes	Discount: Get a $100 first year discount when you take out a new AAMI Life Insurance policy. T&Cs apply.	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.	Get Quote View details Compare product selection Compare	loading
Finder score 7 Great HCF Life Protect Insurance	Finder score 7 Great	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover	Optional Trauma Cover No	Discount: Get 6 weeks free with HCF Life Insurance. Offer ends 10 Nov 2026. T&Cs apply.	Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process.	Get Quote View details Compare product selection Compare	loading
Finder score Not scored yet Australian Seniors Life Insurance	Finder score Not scored yet	Maximum Cover $0.2 million	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover No	Our verdict: Australian Seniors lets you take out cover up to the age of 79. No medical exams or blood tests needed to apply. Keep in mind: Low cover limit of up to $200,000 and no option to add TPD or Trauma cover.	Get Quote View details Compare product selection Compare	loading
Finder score Not scored yet Real Life Insurance	Finder score Not scored yet	Maximum Cover $2 million	Funeral Benefit $20,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get 10% cash back of the premiums you’ve paid after your first 12 months with the Real Reward™ . T&Cs apply. .	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams.	Get Quote View details Compare product selection Compare	loading

loading

Load More

Showing 8 of 8 results

Compare other products

Looking for other options? Check out these similar products.

How we picked these

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 30 products and gave each one a score out of 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.

Read the full methodology

Frequently asked questions

• Do I still need life insurance if I'm retired?

  The need for life insurance often reduces once people enter their retirement years and their financial obligations change. You may wish to decrease the amount of cover you have in future years, but still have some in place to:

  • Provide a legacy to your surviving children in the event of your death
  • Cover your funeral expenses
  • Tie up any final expenses such as legal fees or taxes

• What factors will affect the cost of my life insurance?

  Your age, gender and lifestyle (for example, whether or not you smoke) are some of the key factors an insurer takes into account when setting your insurance premium.

  The cost of your policy isn't everything when you're comparing life insurance though. You may choose to add more features to your cover and pay a bit more for your premium.

  It's important to find a policy that'll meet your specific needs and circumstances. If you prefer, speak to an insurance specialist to help you find personalised cover.

• Do I still need life insurance if I'm retired?

  It is natural for the need for life insurance to reduce once people enter their retirement years and their financial obligations change. You may wish to decrease the amount of cover you have in future years but still have some in place to:

  • Provide a legacy to your surviving children in the event of your death
  • Cover funeral expenses
  • Tie up any final expenses such as legal fees or taxes

  It is worth taking into consideration existing assets that may be used in the event of your death such as:

  • Superannuation
  • Savings
  • Property
  • Other assets such as car, contents

• What type of cover should I get if I'm still young?

  For young people, there's typically less of a need to get life insurance as there are fewer ongoing financial obligations compared to those who are older or with families of their own.

  However, funeral insurance is an option to consider. Then there's TPD, Trauma or Income Protection, all of which can offer support if you suffer a serious injury or illness.

• Where might I already hold other types of insurance?

  Most Australians have some sort of cover in their super fund and/or through workers' compensation insurance, but make sure you check as this won't be the case for everyone.

  Good to know: These default cover types usually have more restrictive benefits and less generous terms in comparison to standard life insurance policies.

Written by

James Martin

Journalist

Add to Preferred Sources

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, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. 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 167 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips

Co-written by

Ceyda Erem

Senior writer

Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

Ceyda's expertise

Ceyda has written 242 Finder guides across topics including:

• Insurance