Life Insurance Finder™ - Life Insurance Comparison
Over or under paying for Life Insurance or Income Protection? Find a new policy or review your existing cover
Life Insurance Finder™ is a 100% free service to help Australians find an appropriate Life or Income Protection Insurance solution. Applicants can compare policies from 15 of Australia's most recognised insurance providers. Please read our Terms and Conditions to understand the services we provide and how we will use the information we hold. The product information on this website is not intended to imply any recommendation or opinion about a financial product listed. Consider your personal circumstances and obtain professional advice before you commit to, or purchase, any particular product.
When you request a quote, your information will be provided to an insurance adviser who can provide you with advice should you require it. Quotes are provided free of charge and without any obligation.
Apply online or over the phone with these direct insurers
I think my mortgage is next to go under the Finder Microscope…”
Aaron S. Bowral, NSW
What cover are you looking for?
Receive a lump sum payment if you pass away. This cover can be combined with TPD/Trauma and joint cover discounts with spouse are available
Cover up to 75% of your income if seriously ill or injured and unable to work. Premium payments are tax deductible
Receive cover for the loss of key workers in your business or cover fixed business costs if you suffer serious illness or injury
Life Insurance Finder is a Free, Australian Owned Life Insurance Comparison Website.
Compare your options from 15 of Australia's leading insurers. Quotes are provided free of charge and there is absolutely no obligation to sign up for a policy.
Need life insurance or income cover but not sure where to begin?
It’s easy to feel slightly overwhelmed when thinking about taking out life insurance or income protection. finder.com.au wants to make the process of purchasing or reviewing cover easier by breaking these products down so you can feel secure that you have enough cover in place and are not paying for cover you don’t need. This guide will provide answers to the questions many of us have when looking for cover.
Looking for a quick summary? Check out our video guide
How much cover should I get?
Everybody’s situation is different so theres no perfect answer to this question but generally you want to determine an amount that will cover the immediate and ongoing costs in the event of your death or terminal illness so that your family or other financial dependents can continue their current way of life. This may include;
1. Outstanding debt you don't want to leave behind
- Cover your outstanding mortgage payments
- Cover any personal debt you still have (personal loans, car loan, credit cards)
2. Your families ongoing living expenses
- Rent payment
- Vehicle and transport costs
- Education/child care costs
- Other expenses
3. Cover you already have your family can fall back on
Once you have determined this amount, you need to work out how many years you would need to cover these living expenses and offset it against any savings/assets that could be used in the event of your death. This may include;
- Assets that may be sold i.e. second car
- Investments (property, shares etc.)
- Life insurance you already have in your superannuation
4. Length of cover to choose
Some things to consider when determining the period of time to take out cover include;
- Your age and the age of your partner
- Earning capacity of your partner now and in the future
- Number of children and their ages
Use our life insurance calculator to work out an estimate sum to take outBack to top
What types of cover are available in Australia?
|Type||Payment Type||Main Purpose||Key Features|
|Life Cover||Lump sum payment||Provides a lump-sum payment in the event of death or terminal illness to the insured’s beneficiaries||
|Trauma Cover||Lump sum payment||Provides a lump sum payment on diagnosis or occurrence of specific illness such as stroke, cancer, heart attack so that you can focus on your recovery||
|TPD||Lump sum payment||Provides a lump sum payment to clear debts, cover medical costs and provide an annual stream of income so that you can maintain your current way of life||
|Income Protection||Monthly benefit of 75% of income||Provides ongoing monthly benefit of 75% of regular income if forced to take time out of work due to accident, illness or major trauma. Some policies will provide over 75% if additional amount is contributed to super||
|Funeral Insurance||Lump sum payment||Lump sum payment (usually up to $30,000) to cover the cost of your funeral||
I've already got life insurance in my Superannuation, is it enough?
Most superannuation funds will provide members with a default level of cover which can be increased, decreased or cancelled altogether. The cover provided in your super may be sufficient for your situation but you need to weigh up the benefits and drawbacks of this option and whether you require an additional level of protection;
Benefits of funding through super
- Generally cheaper as cover is purchased in bulk by super fund
- Premium payments may be tax-deductible
- Payments made automatically direct from your super and not your after tax income
- Reduced requirement for health checks
Drawbacks of funding through super
- Types of cover available is limited. Trauma insurance is no longer offered through superannuation
- Usually reduced level of cover offered to retail policies
- Benefits paid to non-dependents can attract tax
- Payment of benefit can be more complicated/drawn out as benefit is paid to fund trustee first
- Cover is generally more comprehensive/flexible for policies outside of super
Are you looking to switch life insurance policies from that offered by your superannuation fund but still continue to pay for your premiums through your super? There are a number of life insurance companies that work with eligible super funds to allow existing members to transfer the cover provided from their existing super fund to a new policy and keep paying from their super funds.
- Greater access to insurance tailored to your needs while still funding premiums through your superannuation
- Can keep funds invested in same superannuation fund and rollover funds to insurance company when required
- Insurer will pass on superannuation rollover tax benefit to reduce premium that is rolled over
- Some insurers will let you choose how much you rollover i.e. 2-3 years worth of premium
Don’t want to overpay but don’t want to be under protected?
Nobody wants’ to pay too much for cover but going with the cheapest possible policy you find could leave you severely under protected. Here are some tips to get quality cover that won’t send you broke;
- Buy young and lock in a competitive rate. Taking out cover when you are younger and likely to be in good health means you can lock in a more competitive rate as oppose to when you're older and more prone to pre-existing conditions. Cover is guaranteed renewable so you don’t have to worry about being knocked back further down the track
- Find out how much cover you actually need. Take the time to properly assess what will need to be covered in the event your death/serious injury and how this figure could change in the future
- Find out what cover you already have. You may already have some cover in place from your superannuation or employers superannuation fund. Find out what you stand to receive in a claim and if extra cover is necessary
- Take the time to shop around. Comparing policies with a consultant from a range of insurers will give you a better chance of finding something tailored to your needs that is well priced
- Already covered for salary continuance insurance? Salary continuance has a benefit period of two-years so it could be worth taking out income cover with a two year waiting period to save further
- Keep an eye out for special offers. Competition among insurers has resulted in an increase of special offers to help you save further on your cover
When is life insurance tax-deductible?
|Type||Premium payment outside super||Benefit payment outside super||Premium payment inside super||Benefit payment inside super|
|Life Cover||Not tax-deductible||Payment is not taxed||Generally tax-deductible||May attract tax if paid to non-dependent|
|Income Cover||Generally tax-deductible||Payment is tax-assessable||Generally not tax-deductible||Payment is tax-assessable|
|Trauma||Not tax-deductible||Payment is not taxed||N.A||N.A|
|TPD||Not tax-deductible||Payment is not taxed||Only fully deductible to a complying super fund if the payment relates to a current or contingent liability by the fund to provide a ‘disability super benefit||Payment is tax-assessable|
|Funeral||Not tax-deductible||Payment is not taxed||N.A||N.A|
How do I know the company will pay my claim?
When taking out any type of insurance, you want to feel secure that the company you choose will actually honour your claim. It’s easy for the mainstream media to cover all the horror stories of claims not being paid without actually looking at the facts;
- Over $5 billion across 85,329 claims were paid by the life insurance industry in 2013
- Over $27 billion in claims paid in life insurance industry since 2004 (The Risk Store)
- Insurer AMP paid more than $850.4 million in claims across life, trauma, disability, tpd and income protection plans
Provided you are within the terms and conditions of your policy, there really is no reason that your claim shouldn’t be paid. Some steps to ensure your claim is paid include;
- Tell the truth when applying. Don’t leave out any details of any pre-existing conditions that might impact your policy
- Tell your insurer as your situation changes. Such changes could include changes to health, employment or hobbies
- Know what you will and will not be covered for...taking the time to actually read the PDS before taking out cover could save you a nasty surprise later
- Choose a reputable company;
- Financial strength
- Reputation in market
- Straightforward claims process
- Flexibility to update cover
- Registered under life insurance act and approved by APRA
Should I buy cover with an adviser or straight from the insurer?
Applying with an adviser
- Access to wide range of products to give you greater choice
- Can use knowledge of market to help you find cover suitable for your situation
- Can help you assess your situation to determine what type/how much cover you require
- Can offer advice around life insurance inside and outside superannuation
Advice-based products generally offer higher cover levels and greater range of features
- Usually no medical required on direct products
- Cover can be put in place entirely online or over the phone
- You know straight away if your application is successful
- Immediate death cover once application is received
- Direct products are beginning to become more and more competitive with some cover amounts up to $15 million
- Number of general insurance products now offering cover for involuntary redundancy
Still not sure? Some questions you probably have
Whether you need it
I’m young, single and no one is dependent on me...why get cover?
You may not want to pass on outstanding mortgage debt, personal debt or final expenses i.e funeral costs to your family and friends. What about income protection or TPD? If you suffer a serious injury and can’t work for a few months or ever again, what would you do then?
Am I better off just putting funds into a high interest savings account?
Most people are not fortunate enough to have adequate funds invested in a high-interest account that would be enough to cover their outstanding debts and give their family support for the future. With some life and disability claims reaching up to $2 million … it’s a fair wad of cash to just have sitting around!
Aren't I already covered by my health insurance for illness and injury?
Not exactly. Health insurance covers medical expenses that are associated with sickness and injury but does not provide support for bills, debts or loss of income if you can’t work for an extended period or ever again. Life insurance covers the gap between the expenses covered by health insurance and additional costs of ongoing treatment, rehabilitation and loss of income.
Why get TPD Insurance if already covered by the Disability Support Pension?
There is financial support from the government for those that suffer a disability but there are rules around who is eligible to receive the benefit and it is not likely to be enough to cover your annual expenses. Consider the table below showing maximum payment for those over 21 with children.
|Status||Payment per fortnight||Total per annum|
|Single Over 21||$782.20||$20337.20|
|Member of Couple||$589.60||$15329.60|
Applying for cover
Who can apply?
Australian and New Zealand Citizens, and Australian permanent residents (those residing in Australia at time of application). Age restrictions vary between providers and cover selected.
When will I be classed as a smoker?
Insurers class anyone that has smoked tobacco or any other substance in the last 12 months as a smoker.
Can I take out cover with my spouse/partner?
Yes. Generally, two people can be covered under a single policy. Discounts for multi-policies are offered by come providers.
Can I add my partner later?
No, generally they will be required to take out a separate policy.
Do I need to do a medical or blood test when applying?
Most insurers will only require medical or blood tests at application if the insured has a pre-existing condition that needs to be assessed further. Additional evidence may be required in the event of a claim.
Can I get cover if I have a medical condition?
It depends on the condition and treatment. Every insurer has different conditions for pre-existing conditions so it is best to check the PDS before taking out cover.
Can I increase or decrease my level of cover?
Yes. You can apply to increase or decrease your cover at any stage to meet your needs. It’s worth noting that you will be required to undertake another round of assessments with your insurer.
Can I add/remove beneficiaries from my policy?
Yes. You can update beneficiaries at any stage.
Can I cancel my policy?
Yes. Most policies offer 30 day cooling off period whereby premiums paid during this period will be refunded. No premiums will be refunded if you cancel your policy after the cooling off period.
Do life insurance companies still offer surrender value for policies?
No. Life insurance is not an investment product and is designed to pay a benefit for death, terminal illness, injury or illness.
Am I covered overseas?
Yes. Most policies provide cover 24 hours a day anywhere in the world. Countries that have been advised against travel are generally not covered.
Making a claim
If I pass away, how is my claim paid?
In the event of your death, your life insurance company or super fund trustee will pay out the nominated death benefit to one or more of your financial dependents or to your estate. A “binding nomination” can ensure the benefit from the cover in your super is paid to the beneficiary of your choice. You should make sure your estate has the necessary documentation so that they can claim on your behalf (see below).
What does a beneficiary need to provide to claim a benefit from a deceased policyholder?
Generally, the beneficiary will need to provide:
- A completed claim form
- Original policy document and policy schedule
- A copy of the deceased’s birth certificate
- A certified copy of the deceased’s will
- Probate or letters of administration.
Do I have to keep paying premiums if I make a claim for injury or illness?
If you claim for injury or illness on a life cover policy, your benefit will be reduced by the amount paid and your premiums adjusted accordingly.
How many people can I nominate to receive a benefit on my policy?
Most policies allow you to nominate up to 5 beneficiaries on your policy.
What happens if I don’t nominate anyone to receive the benefit?
The claim will be paid to your estate
Insurance news, guides and articles
Read lots of articles about life, trauma, disability, and income protection insurance. If you are looking for a specific answer to a question, try a site search to find top content for help you.
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