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.

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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 Fully Underwritten? Terminal Illness Benefit Optional Extras
NobleOak Life Insurance
$15,000,000
69
$3,000,000
TPD cover, Trauma cover
Get your one month free when you buy NobleOak Life Insurance policy. Offer ends 31 July 2021. T&C's apply.
Real Family Life Cover
$1,000,000
64
$1,000,000
TPD cover, Trauma cover
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
ahm Life Insurance
$1,500,000
65
$1,500,000
TPD cover, Trauma cover
Medibank Life Insurance
$2,500,000
70
$2,500,000
TPD cover, Trauma cover
Medibank health members save 10% on premiums every year. T&Cs apply.
Zurich Ezicover Life Insurance
$1,500,000
69
$1,500,000
No optional
Get the first month free and a 10% discount if you take out a second life insurance policy (discount applies to second policy). T&C’s apply.
Insuranceline Life Cover
$1,500,000
65
$1,500,000
Trauma cover
Get a $100 bonus gift after 2 months. Offer ends 30 September 2021. Plus get 12 months cover for the price of 11 if you pay for life insurance annually. T&Cs apply.
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Compare up to 4 providers

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

Enter your details and one of our partner brokers will call you. They will discuss your quote, options and available products.

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An adviser can help you find cover from trusted life insurance brands.

  • Get competitive quotes from multiple brands
  • Lower rate of declined claims (according to ASIC)
  • Save time and effort

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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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