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 20 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.
The best policy for you will depend on the insurance type that meets your specific needs and life circumstances. To help you out, we've identified some of the highest-scoring life insurance brands based on our Finder Awards data.
Life insurance is often worth getting if you have a partner or people who depend on you financially. Many Australians automatically have life insurance included in their super. However, it's often not enough to cover all of your debts. A standalone life insurance policy can cover you for more.
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.
It's an individual assessment depending on your cashflow, retirement funding and tax situation. While it's often cheaper and easier to hold life insurance within super, it reduces the amount in your retirement fund. Additionally, the payout is usually small and the policies typically expire when you turn 65. With a traditional life insurance policy, the expiry age is usually around 99 or there is no expiry age at all, as long as you keep paying your premiums.
In addition to paying out if you die, many life insurance policies can cover:
Terminal illness cover. This pays a lump sum if you are diagnosed with an illness which cannot be cured, such as advanced cancer. The amount paid is the same as the policy's maximum cover. After a terminal illness benefit is paid, the policy expires.
Counselling sessions. This helps with the cost of grief counselling sessions, up to a set limit, such as $1,000.
Children's life cover. This option lets you add your children to your policy. If they become terminally ill or die, it can pay you a lump sum.
Financial advice benefit. You, or your family, can utilise the help of a qualified financial adviser to help with the management of your estate. The benefit pays up to a limit. For example, $2,000.
Funeral benefit. This pays out a portion of your lump sum in advance so your family can pay for your funeral, as the full payout typically takes between 2 and 4 weeks). The payout tends to range from $10,000 to $25,000. Funeral cover is also available as a standalone policy.
Interim accidental cover. You can be insured against accidents while your life insurance application is being processed. Usually, for up to 90 days.
TAL Life Limited is the largest life insurance company in Australia. It accounts for 33% of the market. AIA Australia Limited is the second largest fund (18.3%), followed by Zurich Australia Limited (13.8%).
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. A quick way to do this on your laptop or computer is to search "control + F" or "command + F" and look for "exclusions".
Yes. Currently, life insurance providers don't specify COVID-19 exclusions on individual policies. However, you should check if the policy will cover you for claims associated with COVID-19 before you buy, renew or switch 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.
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.
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.
Karen Eley is the founder of Women Talking Finance, which provides money coaching and financial literacy and education services. An experienced and former financial adviser who has worked in financial services industry for 22 years, Karen is a Certified Money Coach (CMC), holds a Bachelor of Accounting and an Advanced Diploma in Financial Planning and CFP.
Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio
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