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.
Life insurance policies are set up with two core components: a policy owner and a life insured. These are usually the same person but it's possible for the policy owner to be someone else, a trust or a corporation. A policy owner has authority over the policy, which includes the ability to amend or cancel it and to select the beneficiaries.
Who's involved in a life insurance policy?
The policy owner
The policy owner has full control over the policy. They choose who the beneficiary is e.g. who receives life insurance payout. The policy owner is usually also the life insured but they can sometimes be the beneficiary or even a third party like a superfund.
The life insured
This is the person who's life is insured against them passing away. They're the one who goes through the underwriting process, answering questions about their health, occupation and age. When the life insured dies, a payment is made to a beneficiary.
The beneficiary
This is the person who is paid out when the life insured passes away or becomes terminally ill. There can be more than one beneficiary and each beneficiary can receive different amounts – this decision is decided by the policy owner.
Life insurance owner vs beneficiary: what's the difference?
The policy owner
The policy owner has control over the policy. They're responsible for paying premiums and ensuring the right level of cover remains in place. The owner can also make changes to the policy or even cancel it. At the time the insurance contract is created, the life insurance policy owner must choose the policy's beneficiaries, and also has the authority to change those listed as beneficiaries at a later date.
Note: the policy owner can also be the beneficiary – for example, if you purchase a policy on your partner's life (making them the life insured), naming yourself as the person receiving the payout when they die.
The beneficiary
A beneficiary is a person who receives the life insurance payment. Most people nominate their spouse or a child as their beneficiary, but who you choose is entirely up to you.
These types of beneficiaries are known as primary beneficiaries. If a person listed as a primary beneficiary dies before the life insured, however, the payment passes to others listed on the policy – these people are known as contingent beneficiaries.
It's possible for policies to have multiple primary and contingent beneficiaries, and you can determine the amount (in terms of a percentage) you wish each beneficiary to receive.
If a minor child is listed as a beneficiary, a guardian or trust will need to be assigned to receive any funds.
Who can be the owner of the life insurance policy?
It's important to understand the ownership structure of your life insurance policy. Each ownership structure has its own advantages and disadvantages, so read on to find out which one best suits your situation.
Self ownership. Self-owned policies means that the life insured owns the policy and has full control over their own life insurance. Changes to the policy can all be taken care of by the one person, while the policy is simple to administer if changes occur to your life circumstances e.g. if you get divorced.
Cross ownership. Also known as third-party ownership, this structure means that someone other than you will own your policy. This can be quite a common approach for married couples where each spouse owns their partner’s policy. Cross ownership does have its advantages, especially for those who rely on someone else (e.g. their spouse) for a stream of income. However, if your marriage breaks down and you have cross owned life insurance policies, difficulties may arise.
Joint ownership. This is another ownership structure you can consider if you’re married or in a relationship. A hybrid of self and cross ownership, joint ownership allows you to still have some control over your policy. However, keep in mind that any proposed changes to the policy must be approved and signed off by both owners. Once again, divorce or relationship breakdown can result in difficulties with this type of ownership.
Through a superannuation fund. You can also own a life insurance policy through your superannuation fund. Because super funds can offer life insurance policies purchased at group rates rather than individual rates, these policies will be offered at very competitive prices. No medical exams are required for you to take out basic cover, while many policies also often include TPD and income protection cover. However, cover under these policies might not be enough for your needs, and also cannot be tailored to your circumstances.
Via a company or trust. Insurance policies can also be owned by a corporate entity. Businesses may take out key person insurance on an employee, and this lets them claim a tax deduction for the premium and also cover the loss of revenue resulting from the loss of a key person.
What are the benefits and disadvantages of superannuation life insurance ownership?
Pros
It's usually cheaper because funds can buy policies in bulk.
No individual medical checks.
There are sometimes tax benefits if you're self-employed.
It's usually automatically included so you will probably be covered to a certain extent already.
Cons
You may not get a sufficient level of cover.
You'll likely get a 'one size fits all' policy rather than cover that's tailored to your needs.
Any benefits are paid to your super fund, not straight to your beneficiaries which can create delays.
You're not in full control of choosing your beneficiary – that responsibility lies with the Trustee of your super fund.
What happens if the life insurance owner dies?
If the policy owner and the life insured are the same person, a benefit will be paid to the beneficiary and the policy will then be terminated.
However, if the policy owner is not the life insured, ownership of the policy would become part of the deceased's will. Ownership can then be passed on according to the terms of the will or, if no such terms for transfer of ownership are set out, by laws of intestate succession.
Updating life insurance policy ownership
It is not uncommon for people to need to make adjustments to the structure of their life insurance policy as their situation changes. Such changes can include;
Change of policy owner
Change of policy beneficiary
Change of payment frequency
Change of sum-insured
Change of address listed on the policy
Change of name on policy
In the event that you need to make adjustments to your policy, each insurer will have forms located on their website that can be accessed and resubmitted requesting a change to the policy ownership or beneficiary. It is worth noting that the policy can only be updated by the policy owner.
Compare life insurance quotes from these 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":"10","maximum":"79"},"product.FILTERS.INCLUDED_BENEFITS":null,"product.GENERAL.PROVIDER_ID":null,"product.FEATURES.POLICY_TYPE":null}},"prefilled":false,"experimental":false}
9 of 22 results
Compare other products
We currently don't have that product, but here are others to consider:
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.
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.
Speak to an insurance specialist to help you find personalised cover
Frequently Asked Questions
Insurable interest is a legal requirement for taking out a life insurance policy. It means the policy owner would actually have to be at risk of financial or emotional loss if the insured person passes away. This prevents people from taking out policies on strangers and ensures the insurance is for protection, not speculation. Common examples of insurable interest include relationships between spouses, partners, parents and children, or key business relationships.
Yes, tax implications can vary significantly depending on the ownership structure. Generally, premiums for a self-owned life insurance policy are not tax deductible and the death benefit is usually paid tax free to beneficiaries. However, if the policy is owned by a superannuation fund special tax rules apply to contributions benefits and payouts. For policies owned by a company or trust there can be specific tax implications regarding premium deductibility and benefit taxation. It is always best to consult a financial advisor or tax professional for advice on your specific situation.
If the policy owner becomes mentally incapacitated and cannot make decisions, a pre-arranged Power of Attorney or a court appointed guardian would typically assume control of the policy. This highlights the importance of having appropriate legal arrangements like a Power of Attorney in place, to ensure your wishes regarding your life insurance can still be managed. Without these arrangements the process can become more complex and require court intervention.
When your life insurance policy is held within a superannuation fund, you can generally make a beneficiary nomination. However, the superannuation trustee ultimately holds discretion over who receives the death benefit. To ensure your wishes are followed it is best to make a binding death benefit nomination. This type of nomination legally directs the trustee to pay the benefit to your nominated beneficiaries provided it is validly made and remains current. Non-binding nominations are a guide for the trustee but are not legally enforceable.
If you do not name a beneficiary on your life insurance policy the death benefit will typically be paid to your estate. This means the funds will be distributed according to your will or, if you do not have a will, according to the laws of intestacy in your state or territory. This process can cause significant delays in your loved ones receiving the funds and the payout may be subject to additional taxes or fees as part of your estate. It is highly recommended to nominate beneficiaries to ensure a quicker and smoother payout process.
Generally, a child cannot legally own a life insurance policy in Australia as they lack the legal capacity to enter into a contract. If a policy is intended to benefit a minor it is usually owned by an adult, such as a parent or guardian, or held in a trust for the child's benefit. When the child reaches 18 years of age, ownership can then be transferred to them if appropriate.
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
180
Finder guides across topics including:
Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards.
See full bio
Gary Ross's expertise
Gary Ross
has written
558
Finder guides across topics including:
Review the Australian Seniors Life and compare options available.
Important information about this website
Finder is a comparison service. We do not compare every product or every provider in the market.
We make money through commercial arrangements with some of the providers on this site. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement.
Our editorial content, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements.
The default order of products in our tables can be influenced by commercial arrangements. You can re-sort or filter using the controls above each table.
Some content on this site may be generated or supported by AI tools. You should verify details directly with the provider.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
Our comparison service does not include every product or every provider in the market. Some product issuers offer their products under multiple brands or through associated companies. Where we can, we identify the underlying issuer so you can compare like with like, but you should always check with the provider directly to confirm which brand you are dealing with.
Finder is a comparison website and an intermediary. We are not a product issuer and we do not provide personal financial or credit advice. When you click a link to a product, or apply for a product through our site, you deal directly with the product issuer. We may receive a referral fee, commission or other payment from the issuer if you click through, apply or take out a product. We describe these arrangements in more detail under 'How we make money' below.
Product features, fees, terms and eligibility criteria are set by the product issuer and may change. We rely on information supplied by issuers when we present product details on our site. Before you apply for or take out any product, you should confirm the details directly with the issuer.
We earn revenue from Finder in four principal ways:
Referral fees and commissions. When you click a product link, complete an enquiry form or apply for a product through our site, we may receive a referral fee, commission or other payment from the product issuer. We may also receive payment based on the volume of leads or conversions we send to an issuer.
Sponsored placements. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement between Finder and the issuer. These labels always indicate a paid placement. We do not use them for editorial choices.
Display advertising. Banner advertising, newsletter advertising and similar display ads on our site are paid by advertisers.
Content sponsorship. Some articles, videos and social media posts are sponsored by an issuer and are clearly labelled as such.
Our editorial opinions, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements. A 'Top Pick' is an editorial choice made by our writers and editors based on the criteria described on each comparison page. A 'Top Pick' is not a personal recommendation and does not mean the product is appropriate for your circumstances.
If you would like to know whether we have a commercial arrangement with a specific product issuer, please contact us.
When products are grouped in a table or list, the default order can be influenced by commercial arrangements we have with product issuers. In some categories, sponsored or featured products appear in the top positions of the table by default, and are always labelled as such.
Other factors that influence default order include price, fees and features, and (where relevant) our editorial view of the product.
You can re-sort every comparison table using the controls above the table. You can filter by product features that matter to you. The order you see after re-sorting or filtering is not influenced by commercial arrangements.
Some content on this site is generated or supported by artificial intelligence tools, including our AI-powered assistant FinderBot. AI-generated content may contain errors. Please verify important information directly with the product issuer before making a financial decision. For more information about FinderBot, see the FinderBot Terms of Use and FinderBot Privacy Collection Notice.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
