Life Insurance Quotes Australia – Compare 9 Leading Insurers

If you were to pass away, life insurance pays a lump sum to your beneficiaries. In Australia, life insurance is often called term life insurance because you are covered during the term of your policy (while you are still paying premiums). While covering death is the primary benefit of life insurance, the retail insurance policies on our approved product list also offer additional benefits. Policies generally include a terminal illness benefit, meaning the benefit is paid early if you are diagnosed with a terminal illness and have less than 12 months to live. Similarly, policies also come with a built-in funeral benefit, which may vary from policy to policy, but typically has a minimum amount of $10,000.
Life insurance policies in Australia are not a savings plan. This was known as whole-of-life policies and were phased out in the early 1990s. You simply pay premiums to be covered, just as you would with any other type of insurance, such as car or home insurance. Once you stop paying, you are no longer covered. The retail providers on our panel are all guaranteed to renew your policy if you wish to keep paying your premiums (until the age of 99). You can cancel your cover at any time, though.

We have helped thousands of Australians find the Best Life Insurance for their situation. The Spotter Life insurance comparison service is free to use. We can provide a quote from 9 leading retail insurance companies in Australia and help you arrange life cover.

If you are looking to proceed, the application is done over the phone, and typically, there are no medicals or lengthy forms to complete. We cannot provide personal advice, but if you are seeking it, we can refer you to a specialist.

Life insurance helps protect the family of the insured individual. In the event of death or terminal illness, a lump sum is provided, which may be used to help with the following:

1. Cover children’s expenses, including educational costs
2. To help replace spousal income to meet the family’s income needs
3. To pay off debts such as mortgages, credit cards or other loans

With life insurance, there are not many policy options to choose from (unlike other forms of cover).

One option is whether you wish to have stepped or levelled premiums. Stepped premiums increase with age, while level premiums lock in your premium at today’s age, although prices will increase with inflation and overall product price increases. If you choose a stepped option, you pay less today, but your policy will increase over time as you get older. If you choose a level option, you pay more today to lock in your age. The cost savings for taking out a level premium could be significant if you hold the policy for a long period.

For example, a 35-year-old, non-smoker male who takes out $500,000 in cover and holds the policy to age 65 could pay an estimated $19,374 under a level premium and $60,551 if choosing a stepped premium. The difference is over $30,000 in this example.

If you choose a level premium, it’s typically fixed at that level until age 65 or 70, depending on the option you choose at inception. After the level component expires, the policy reverts to stepped.

When you sign up for life insurance cover, you are requested to nominate beneficiaries. Typically, an application can have up to 10 beneficiaries, and you can set percentages for each beneficiary. Your beneficiaries could be anyone, but are often spouses, children or other close family members. You should consider estate planning when determining how you would like your assets to be distributed in accordance with your will. If you don’t have a nominated beneficiary, your benefits are often paid to the estate for distribution.

The amount of life insurance cover will vary depending on your individual circumstances. However, there are lots of available tools that can provide you with a guide. For example, the Australian Government provides a Life Insurance Calculator that may be a helpful guide for you.  If you are still in doubt, we can refer you to a financial planner if you wish.

Unfortunately, there is no simple answer to that question. The cost of life insurance depends on a number of factors. These are just a few.

• Your age – as you get older you pay more for life insurance
• Your gender – this is based on life expectancy estimates and males typically pay more for life insurance
• Are you a smoker or a non-smoker – smokers pay more for life insurance
• What amount of insurance do you need – the higher the cover amounts, the more you pay
• What is your health like – if you have serious health conditions, you may pay a policy loading or, in extreme cases, not be offered cover at all.

Several factors influence the premium you are quoted. The main ones are your age, smoking status, the amount of cover (sum insured), whether you choose stepped or level premiums, your health and medical history, occupation, and whether the policy is paid inside or outside superannuation. Insurers also consider lifestyle factors. The cleaner your health and lifestyle profile, the more competitive the life insurance quotes tend to be.

Stepped premiums start lower and increase each year as you get older. Level premiums are higher at the beginning but stay more stable over time (they can still rise with inflation or product changes). For people who plan to hold cover for many years, level premiums often work out cheaper overall. We can show you both options side-by-side when we prepare your quotes.

Yes. Many people fund retail life insurance via a partial rollover from their superannuation. This can improve cash flow and may attract a contributions-tax advantage, but it reduces your retirement savings. Paying outside super keeps your super balance intact. We can explain the pros and cons for your situation and help set up either structure.

You can usually receive personalised life insurance quotes within minutes of completing our short form or speaking with one of our team. The process is free and no-obligation. Most applications are completed over the phone and, in many cases, no medical examination or lengthy paperwork is required.