People think about life insurance around these life stage changes:
The most common are:
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| Life insurance | 13.79% | 16.57% | 32.56% | 37.31% | 38.07% | 43.12% | 27.84% |
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.
Here are the main types of life and income protection cover you can get:
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.
Total permanent disability (TPD) insurance provides a lump sum benefit if the policyholder suffers a disability as defined in their policy.
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 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 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.
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.
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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 between 1 and 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 full Finder Score methodology
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.
Read our comprehensive guide to finding the best life insurance policy for your situation.
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Compare Life Insurance and Income Protection policies from Real Insurance and get cover in place with no medical or blood tests.
