Compare Life Insurance Policies

A life insurance policy will provide a lump sum benefit on your death or if you are diagnosed with a terminal illness, to give your family and loved ones financial security and support when you’re no longer around. A terminal illness is usually defined as one where the insured is given less than 12 months to live by their specialist physician. 

Cover Australia allows you to compare Life Insurance policies Australia wide, from a selection of trusted providers. We also compare Income Protection insurance, TPD Insurance quotes, and offer Trauma Insurance comparison.

Over the years there have been many different types of life insurance policies but the only one currently available in Australia is Life Insurance. This type of insurance provides protection with no cash value, and is the simplest and most affordable form of life insurance. The policy is guaranteed to be renewed by the insurance company for the duration of the term (usually to the age of 99) as long as you continue to pay your premium.

The benefit payout will allow your family and dependants to:

 

Pay off or reduce any debts such as a mortgage, personal loans and credit cards

Cover the cost of your funeral

Pay for the ongoing care and education of your children

Cover ongoing living and household expenses

Pay for long term financial goals such as home renovations or a comfortable retirement

 

With Cover Australia you can compare Life Insurance policies across Australia, as we offer you a broad range of quotes to help you compare and choose a policy that works for you. We also provide ongoing assistance, advice and service for the life of your policy, at no extra cost to you.

All our life insurance products come with a number of automatic inclusions such as 24 hour worldwide cover, an advancement on your claim for funeral expenses, a guaranteed renewable policy until the age of 99, and the option of individual or joint cover with your partner or another person. To compare Life Insurance policies, be sure to get in contact with us today.

Most life insurance policies also give you the option of adding on extra cover for even more protection, such as Critical Illness cover or Permanently Unable to Work cover.

To be eligible for Life Insurance you simply need to be:

 

Aged between 16 to 65

An Australian citizen or permanent resident

In line with any health, lifestyle and family medical history requirements from the insurance provider

 

If you're looking for a rough estimate as to how much cover you might be eligible for, visit our Life Insurance Calculator

 

Important Terms to Understand

Like with all insurance policies, it is critical that you read and understand all the terms and definitions of your policy and make sure that it will provide sufficient cover for you.

If you need any assistance with understanding the specific terms of your policy, the qualified advisers at Cover Australia are available to help and advise you whenever you need.

The most important terminology used in Life Insurance that you need to understand includes:

 

Duty of Disclosure

When you apply for any type of life insurance, you are required to disclose any piece of information the insurance provider asks for about your health, family medical history, occupation, income, lifestyle and activities.

If you fail to comply or don’t provide accurate information, the insurance provider can withhold your benefits at the time of your claim.

Exclusion

Your policy may exclude certain dangerous sports or recreational activities from your cover, such as motor racing or extreme sports. This means you will not be eligible for benefits if you die as a result of doing these activities.

Guaranteed Future Insurability

This gives you the option to increase your cover at certain times in your life without having to provide evidence of your health or further underwriting.

It is usually available on defined events such as when you get married, have a child or increase your mortgage.

Level Premium

The amount of your premium is calculated based on your age when you first take out your policy. Any increase in your premium is calculated at the start date of the increase based on your age at that time.

Premium Loading

This is when your premium is higher due to a risky lifestyle factor, such as when you are overweight or a smoker.

Stepped Premium

Your premium will be recalculated (and usually increased) on each anniversary of your policy, based on your age at that time.

Underwriting

This is the process of your insurance provider assessing your application for cover, by reviewing your health, occupation, lifestyle, income and activities.

Your application will either be accepted, accepted with additional terms, or rejected.

 

Commonly Asked Questions about Life Insurance

Life Insurance is a relatively simple and straightforward insurance product, which can provide financial protection and support for your loved ones in a time when they need it most.

Here are some of the most common questions we get asked about life insurance:

 

How much life insurance do I need?

This will always depend on your own individual circumstances. It’s intended to provide for those you leave behind when you die, so you need to think about how much they will need to get by without your income.

If you’re young and single, life insurance will primarily cover just your funeral costs and any debt you may have. But if you have a family and a mortgage, you need to ensure your cover will pay off your debts, provide for your children’s ongoing education and care, pay for the costs of living, and perhaps also allow some extra funds for your family to invest.


It’s always a good idea to talk through your options with a qualified insurance advisor before you make any final decisions.

At Cover Australia we provide life insurance quotes as well as ongoing support and advice before and during your policy, to help you choose the right cover as well as periodically review it to make sure it always matches any lifestyle changes. 

How much will it cost?

Whatever your age or your circumstances, Life Insurance is often a surprisingly affordable option to protect your family and loved ones after you die.

Premiums are cheaper the younger and healthier you are, but in most cases comprehensive cover will not cost you much more than the price of a cup of coffee each week.

When is the best time to take out life insurance?

It’s always better to apply for life insurance when you’re young and healthy, as you are much more likely to be eligible for the level of cover you want.

Premiums also increase with age, when health issues are more common. So the best time to take out cover is when you’re young and in good health, to make sure you’ll be looked after in the future.

What should I look for in a life insurance policy?

There are many things to look for in your policy, on top of just an affordable price. You need to ensure the terms and features of the insurance product cover what you need, and give you the flexibility to make changes in the future.


Make sure you read the whole product disclosure statement so that you fully understand exactly what is covered and not covered, and talk to a professional insurance advisor before you take out any policy so that you can be certain you are getting the level of protection you need. 

 

The Life Insurance Act 1995 and Industry Regulation

The life insurance industry in Australia is regulated by The Australian Securities and Investment Commission (ASIC) and The Australian Prudential Regulation Authority (APRA). Together they administer legislation and protect the rights of both consumers and businesses.

Life Insurance policies are primarily regulated by the Life Insurance Act 1995, which ensures insurance providers deal life insurance contracts in a fair and appropriate manner, and that they pay out benefits to policyholders whenever they make a claim.

The legislation also regulates the actual sale of life insurance, making sure the interests of policyholders and potential applicants are protected while the industry remains competitive.

The key objectives of the Act include:

 

Restricting the sale of life insurance to companies that are both suitable and meet the eligibility requirements of sale

Placing controls over the requirement of life insurance companies to maintain practical management of life insurance business

Enabling supervision of life insurance companies by both APRA and ASIC

Providing legislative management of life insurance companies that may not show signs of strength, such as a declining financial position or poor internal management

Making provisions to ensure that if a life insurance company is closing down, policyholders are protected from any loss

- Enabling supervision of the transfer and amalgamation of life insurance companies

 

It’s important that you have a basic understanding of how the Australian insurance industry is regulated to make sure you are always dealt with fairly during the term of your policy, and so you know how to take the appropriate actions if any issues do arise.

You can view the full Life Insurance Act for more information, or talk to your insurance advisor at Cover Australia at any time over the life of your policy.

We are knowledgeable and up-to-date with all the relevant laws and regulations, to makes sure that we can always advise you accordingly.


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