Explore our collection of guides, tools, and information to help you make informed decisions about life insurance.
Comprehensive resources to help you understand life insurance concepts and make informed decisions.
Estimate how much life insurance coverage you should consider
This calculator helps you determine an appropriate amount of life insurance based on your family’s needs, including:
Interactive tools to help you estimate your insurance needs and understand potential costs.
Understand common insurance terms and concepts with our comprehensive glossary.
Variable Age-Stepped Premiums
(Previously called “Stepped”): Start lower but increase each year with age
Variable Premiums
(Previously called “Level”): Start higher but designed to remain more stable over time
Note: Recent industry changes have updated this terminology. Your existing policy might still use older terms of “stepped” and “level” premiums.
Get answers to common questions about life insurance in Australia.
The amount of cover needed varies based on your personal circumstances. Consider factors such as outstanding debts (including mortgage), income replacement needs for dependants, education expenses for children, and funeral costs. A financial adviser can help calculate the appropriate amount for your situation.
To make a start – take a look at the Needs Calculator, along with the Life Insurance Needs Worksheet.
Life insurance inside your super can be a handy starting point, but it usually only offers a basic level of cover. The default amounts are often much lower than what most families would actually need, and the policies can come with restrictions on when and how you can claim.
It’s worth checking whether your super cover is enough by asking:
Would it clear major debts like the mortgage?
Would it replace your income for as long as your family needs?
Does it include the right types of cover (for example, TPD or income protection)?
In many cases, the answer is no. It’s wise to review your super insurance and consider whether topping up your cover or adding additional cover outside super would give you better protection.
Stepped premiums start lower but increase as you age, typically annually. Level premiums remain more consistent throughout the policy term, starting higher than stepped but potentially costing less in the long run if you maintain the policy for many years. The right choice depends on your budget, age, and how long you plan to keep the coverage.
Note: Recent industry changes have updated this terminology. However your existing policy might still use older terms of “stepped” and “level” premiums. read more in the Glossary (resources section).
The main types include Term Life Insurance (covers death and terminal illness), Total and Permanent Disability (TPD) cover, Trauma/Critical Illness cover, and Income Protection insurance. Many people combine multiple types for comprehensive protection. Each serves different purposes and can be held inside or outside superannuation.
Not always. Many policies can be issued based on your answers to health questions. However, factors such as age, coverage amount, pre-existing conditions, or family medical history may trigger the need for medical examinations or tests. Some insurers offer guaranteed acceptance policies without medical exams, but these typically have lower coverage limits and higher premiums.
The application process typically takes between 2-6 weeks, depending on the complexity of your health situation, the amount of coverage requested, and how quickly medical information can be obtained. Some simplified issue policies can be approved much faster, sometimes within days.
Stepped premiums start lower but increase as you age, typically annually. Level premiums remain more consistent throughout the policy term, starting higher than stepped but potentially costing less in the long run if you maintain the policy for many years. The right choice depends on your budget, age, and how long you plan to keep the coverage.
You’ll need to provide personal details, financial information (income, assets, debts), health history, lifestyle information (smoking, alcohol consumption, recreational activities), occupation details, and beneficiary information. The insurer may also request medical records or require additional tests.
Yes, but it can be more challenging. Insurers typically require you to have had income in the past 12 months or have other sources of financial support. Students, retirees, or people temporarily between jobs may still qualify. The key is demonstrating your ability to pay premiums and showing an insurable interest.
Underwriting is the process where insurers assess your risk to determine if they’ll offer coverage, at what premium, and with what conditions. They review your health, lifestyle, occupation, and financial situation. The process may include medical exams, tests, or requests for additional information from doctors.
Premiums are based on factors including age, gender, health status, smoking status, occupation, lifestyle activities, policy type, coverage amount, and premium structure (stepped vs level). Insurance companies use actuarial data to assess risk and price policies accordingly.
With stepped premiums, increases are expected annually based on age. Level premiums may still increase due to policy changes, insurer rate increases, or changes in your circumstances. Insurers must provide notice before implementing changes.
Generally, personal life insurance premiums are not tax deductible. However, premiums for income protection insurance may be tax deductible if the policy replaces your income. Business life insurance premiums may also be deductible in certain circumstances. Consult a tax professional for specific advice.
Most policies have a grace period (usually 30 days) to pay overdue premiums. After this, your policy may lapse, meaning coverage ends. Some policies offer options like premium holidays, reduced coverage, or using policy values to pay premiums. Contact your insurer or adviser immediately if you’re having payment difficulties.
Life insurance benefits are typically paid as a lump sum to your nominated beneficiaries after a successful claim. The payment is generally tax-free when paid to financial dependents. Some policies may offer alternative payment options, such as installments or annuities.
Claims may be denied if there was misrepresentation or non-disclosure of important information during the application process, if the death occurred during an exclusion period (such as suicide within the first 13 months), or if the cause of death is specifically excluded in the policy terms. Claims may also be denied if premiums weren’t paid and the policy lapsed.
There is no strict time limit for making a life insurance claim in Australia, though it’s advisable to submit claims as soon as reasonably possible. Delays in filing claims can sometimes make the process more complicated as gathering necessary documentation may become more difficult with time.
Simple claims are typically processed within 1-2 weeks once all required documentation is provided. More complex cases involving medical investigations, overseas deaths, or disputed circumstances may take several months. The Life Insurance Code of Practice sets out timeframes that insurers must follow.
Typically required documents include the death certificate, claim form, proof of identity for beneficiaries, and the original policy document. Additional documents may be needed depending on circumstances, such as medical records, autopsy reports, or police reports for accidental deaths.
Yes, most policies cover deaths that occur overseas. However, additional documentation may be required, such as local death certificates, consular reports, or translations of foreign documents. Some policies may have specific exclusions for certain countries or circumstances.
Yes, you can generally change your beneficiaries at any time by contacting your insurer or updating your policy online. For policies held in superannuation, you may need to update your binding death benefit nomination through your super fund. Changes should be made in writing and properly witnessed where required.
Many policies offer options to increase coverage without full underwriting, such as guaranteed increase options tied to life events (marriage, children, mortgage increases) or regular increase options. Additional underwriting may be required for large increases or increases outside these guaranteed options.
Most policies provide worldwide coverage, though on occasion there may be certain restrictions in relation to unrest or terrorism. Complications are normally around claims processing when overseas. You should notify your insurer of your move and may need to provide additional information about your new country of residence.
Yes, you can cancel your policy at any time, though this means you’ll lose all coverage and any premiums paid. For policies with surrender values, you may receive some money back. Consider the consequences carefully, as reapplying later may result in higher premiums or exclusions due to age or health changes.
Advantages include potentially lower premiums due to group arrangements, automatic premium deductions from your super balance, and tax benefits. However, coverage amounts may be limited, benefits may be paid to the super fund trustee rather than directly to beneficiaries, and accessing benefits may involve additional steps. It’s important to be aware of the impact on retirement savings when premiums come from super.
Death benefits paid to tax dependents (spouse, children under 18, financially dependent adult children or other dependents) are generally tax-free. Benefits paid to non-dependents may be subject to tax, particularly if paid from superannuation. The tax treatment can be complex, so professional advice is recommended.
If you change super funds, your existing life insurance may be cancelled unless you make specific arrangements. You might be able to transfer your insurance to your new fund, continue it with your old fund, or apply for new coverage. It’s important to avoid gaps in coverage during job transitions.
Yes, many people have life insurance both inside and outside superannuation to maximize their coverage. This can provide benefits like higher total coverage amounts, more flexible benefit payment options, and different tax treatments. However, ensure the combined premiums remain affordable.
Generally, you can insure up to 70-75% of your pre-tax income, though this may vary between insurers and your specific circumstances. The percentage may be higher for lower income earners and lower for higher income earners. Some policies also allow you to include superannuation contributions in the calculation.
Agreed value policies pay the benefit amount agreed at policy inception, regardless of your income at claim time. Indemnity policies pay based on your actual income loss at the time of claim, up to the policy limit. Agreed value provides more certainty but typically costs more.
Common waiting periods include 14, 30, 60, 90, or 180 days. This is how long you must be unable to work before benefits begin. Shorter waiting periods result in higher premiums. Your choice should consider your existing sick leave entitlements and financial reserves.
Benefit periods can range from 1-2 years up to age 65. Common options include 2 years, 5 years, or to age 65. Longer benefit periods provide more security but cost more. Your choice should consider your profession, the likelihood of returning to work, and your retirement plans.
Access official Australian government and industry resources for life insurance information, regulation, and support.
Official government guidance on life insurance, super, and financial products for Australian consumers.
Regulatory authority for financial services and responsible for overseeing insurance advice standards.
Regulates life insurers and provides regular statistics on the life insurance market.
Details on default insurance in super, inactive account rules, and fund contributions.
Industry body providing data, resources and insights about life insurance in Australia.
Represents qualified advisers and sets standards for ethical and professional conduct.
External dispute resolution service for insurance complaints and claim disputes.
Sets service standards that insurers must follow when dealing with customers.
Consumer advocacy group focusing on improving superannuation transparency and outcomes.
Use ASIC’s Financial Advisers Register to verify adviser credentials.
Or head to our Adviser Directory to get in touch with a specialist that’s suits your needs
Access printable guides, checklists, and worksheets to help with your insurance planning.
A worksheet to help calculate your ideal coverage amount based on your financial situation.
It can also guide you in completing the Life Insurance Needs Calculator.
Think through your Trauma Insurance needs with this worksheet, helping plan ahead.
Also helps guide you in completing the Life Insurance Needs Calculator.
A step-by-step guide to help you navigate the difficult time following the loss of a loved one.
A handy checklist of documents needed when making various types of insurance claims.