Life Insurance Comparison Australia

Why use Life Insurance Finder® ?

Compare life insurance quotes with an expert

Aside from the peace of mind life insurance can give you and your family, there are lots of concrete benefits that make life insurance a worthwhile investment:

A financial adviser or insurance broker can help you understand which insurance options are best for your needs.

• Fill out this quick form and an adviser will assist you

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  Level of Protection UnsureNone$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,250,000$1,500,000$1,750,000$2,000,000

  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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Life insurance explained

Life insurance provides your family with an agreed-upon sum of money in the event of your death or, in some cases, if you are diagnosed with a terminal illness.

Sometimes called death cover, this type of insurance acts as a financial safety net for your loved ones when you die. It means, if the worst happens, your loved ones will still be able to afford the mortgage and pay off any debts. Getting through an illness or grieving for a loved one is hard enough without money worries on top.

Moneysmart.gov.au said that 91.5% of all claims for direct life insurance were paid out in the 12 months to 30 June 2021. There were just 16.9 policy disputes per 100,000 lives insured.

What types of life insurance are there?

Life insurance is often used as an umbrella term to describe lots of different types of personal insurance. You can either buy a standalone policy or bundle several policies together to create cover that is perfectly tailored to you and your family.

Which types of life insurance are right for me?

It's possible you'll want more than 1 type of life insurance, so you can have peace of mind that you'll be covered in different situations.

If you're unsure which type, or types, are right for you, start by focusing on your motivation for buying life insurance.

Remember: You can mix and match different types of life insurance to create a cover perfect for you and your family. For example, combining death cover with income protection means you're protected if an injury or illness stops you from working, plus your family will also be protected if you die.

How do I buy life insurance in Australia?

There are 3 ways to get life insurance in Australia: direct, retail and super. Each option has its own pros and cons. Check them out below to figure out which way might be best for you.

• I already have life insurance in my super

  Heaps of people have some form of life insurance in their super fund but that doesn't mean it's not worth getting extra cover directly from an insurer or with the help of a broker.
  
  Life insurance from super funds is usually less comprehensive than that offered by insurers so there's no harm in getting both. However, if you do already have life insurance in your super, you may want to choose a smaller amount of coverage from an insurer.

Direct life insurance brands Australia

Life insurance is a popular product in Australia, so you have a lot of companies to choose from.

We've reviewed 21 Australian life insurance providers on the market, rating them a score out of 10 based on the features that each one offers. Here were the top 5 highest-scoring providers for features:

• More about our methodology - How did we make this decision?

  As part of our research for the 2021 Finder Awards, we looked at 21 life insurance policies.

  The features were weighted as follows:

  • Fully Underwritten Score: 10%
  • Max Sum Insured Score: 15%
  • Guaranteed Renewability Score: 10%
  • Expiry Age Score: 15%
  • Counselling Benefit Score: 5%

  • Premium Cover Suspension Score: 5%
  • Interim Accident Cover Score: 10%
  • TPD, Trauma, Child cover options Score: 10%
  • Funeral Advancement Benefit Score: 5%
  • Max Entry Age Score: 15%

When is the right time to buy life insurance?

You can buy life insurance whenever you like, but there are a few life stages that often prompt people to get cover, such as the following:

What to check before you buy life insurance

So you're already well on your way to buying life insurance, but there are a few things you should always check before signing on the dotted line.

What affects the cost of life insurance?

Lots of different factors influence the cost of life insurance. That's why it's important to get a personalised quote before deciding whether it's right for you.

Is life insurance right for me?

How much life insurance should I get?

There's no perfect amount. You have to consider a lot of different factors when deciding how much life insurance you should get, such as:

We created a calculator to help you figure it out. However, you should only use this as a starting point. If you want expert advice, you should speak to an adviser.

When will life insurance pay out?

Life insurance is there to help when things get hard. Take a look at the situations below to see which type of policy would pay out.

Want to know more about life insurance?

Buying life insurance can be a tricky decision. Luckily, we have heaps of guides that can help.

Start with the basics with our beginner's guide to life insurance.

If you have any lingering questions about insurance premiums, we break down the different payment structures you can have. Find out if stepped or level premiums are the way to go.

If you're wondering what the tax implications of life insurance are, here's when life insurance premiums are tax-deductible and payments are tax-free.

If there's anything you still have questions on, drop us a comment below and we'll reply to you.

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Life insurance frequently asked questions

• What is life insurance?

  Life insurance is a type of insurance that offers financial help to your loved ones if you die or are diagnosed with a severe illness. Typically, it offers a lump-sum payout to meet the cost of debts, such as your mortgage, bills and other living expenses.

• Can life insurance expire before you die?

  Yes. Some life insurance policies will have an expiry age. However, the specific age varies between different insurers and types of life insurance. Always check the product disclosure statement (PDS).

• Does life insurance cover me for COVID-19?

  Yes. Currently, life insurance providers don't specify COVID-19 exclusions on individual policies. This means if you're one of the very unfortunate people who die from COVID-19, your policy should pay out. However, Moneysmart.gov.au advises you should "check if the policy will cover you for claims associated with COVID-19" before you buy, renew or switch insurance.

• What is not covered by life insurance?

  Claims for certain high-risk activities or illegal ones such as drug use won't be covered by life insurance. You also can't make a claim linked to a pre-existing condition that you failed to disclose during your application.

  To learn about more common policy exclusions that apply to life insurance, read the "general exclusions" section of a policy's PDS.

• How long do I need to have life insurance before it pays out?

  With income protection, there'll be a fixed time you'll need to be off work for your policy to start gaining a benefit. This is known as the waiting period. It usually ranges from 14 days to 2 years. Generally, a longer waiting period will mean a cheaper premium.

• What other types of life insurance might I want to consider?

  Aside from death cover, other types of life insurance that provide financial security if you are injured or become too sick to work include the following:

  • Income protection insurance. Pays a replacement income if you're temporarily unable to work due to illness or serious injury.
  • Total and permanent disability (TPD) insurance. Gives a lump sum if you become permanently unable to work due to sickness or injury.
  • Trauma insurance. Pays a lump sum if you're diagnosed with a critical ilnness, such as cancer.

• Who gets a life insurance payout?

  A life insurance payout goes to the beneficiary, which is the person or people you choose to receive the financial benefit of your life cover policy after you die. A beneficiary can be a family member, a friend, a trust or an organisation.

• Which life insurance is best?

  We can't say which is the "best" policy as it depends on the insurance type that meets your specific needs and life circumstances. That said, we've identified some of the highest-scoring life insurance brands based on our most recent Finder Awards data.

• How many life insurance policies can I hold?

  Technically, there's no limit to the number of life insurance policies you can have. Some choose to mix and match policies to get coverage that works better for them. However, many prefer to have multiple benefits baked into a single policy, which is easier to manage.

• I have a pre-existing condition. Can I still get life insurance?

  Yes, it is possible. If you have a pre-existing medical condition, there are insurers who will still cover you. But they might ask you to pay slightly higher premiums or exclude that condition from your cover. It's really important to disclose any condition you have when you apply for life insurance. Not doing so could void your cover.

• What is child life insurance?

  Child life insurance is a feature you can add to your life insurance policy for an added fee. It will pay out a financial benefit if your child dies or suffers a serious medical condition. We reviewed 15 policies on Finder and only 3 brands – Real Insurance, Guardian and Kogan – offer child cover as an extra.

• Can I withdraw money from my life insurance?

  No. Life insurance will only pay out if you suffer a serious medical condition that's listed in your policy, or if you pass away.

• Can I cancel my life insurance?

  While life insurance can be cancelled at any time, keep in mind if you cancel your insurance and decide to take it out later, you'll likely have a higher premium. That's because insurers will see you as a higher risk due to your age or any further medical conditions you may have had.