Life Insurance

Spotter Life has uncovered Life Insurance Policies from far and wide for you to choose from. Discover the options available…

8 Insurers to Choose From

One of the broadest range of insurers to compare.
See insurers

Save up to 30%

based on a typical policy

Covers COVID-19

Most insurance companies covering COVID 19 if not suffering symptoms

Receive 20% up to $500 cash back on the commission based on your first year’s premium

See how to redeem your cash back

Free Quotes with No Obligation

Get a market comparison from 8 insurance companies with no obligation to buy

No Forms to Fill in

All it takes is a simple phone call

Our service providers

  • AIA
  • Encompass
  • MetLife
  • MLC
  • NEOS
  • OnePath
  • TAL
  • Zurich

Life Insurance FAQ

What does life insurance cover?

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). Whilst covering death is the primary benefit of life insurance, the retail insurance policies that are on our approved product list also have additional benefits. All policies have a terminal illness benefit where if you are diagnosed with a terminal illness with less than 12 months to live then the policy pays out immediately. Similarly, policies also come with a built-in funeral benefit, that may vary from policy to policy, but is typically has a minimum amount of $10,000.

Life insurance policies in Australia are not a savings plan which were known as whole of life policies and were phased out in the early 1990s. You simply pay for premiums to be covered like you would with any other types of insurance like car or home. Once you stop paying you are no longer covered. The retail providers on our panel all are guaranteed to renew your policy if you wish to keep paying your premiums (until the age of 99). You can cancel at any time though.

What is the spotter life service involve?

We have helped thousands of Australians with life insurance inquiries. The spotter life service is free to use. We can provide a quote from 8 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 and forms to fill in. We cannot provide you any personal advice, but if you are seeking personal advice, we can refer you to a specialist if you desire.

Why do you need life cover insurance?

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

  • Pay final expenses
  • Cover children’s expenses including educational costs
  • To help replace spousal income to meet the family income needs
  • To pay off debts such has mortgages, credit cards or other loans
  • Life cover – LEVEL OR STEPPED PREMIUM

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 over time your policy will increase 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, especially if you are younger. 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 only fixed at level until age 65 or 70, depending which option you choose at inception. After the level component expires the policy reverts to stepped.

Life insurance inside or outside of super

For life insurance, you can choose to have the cover paid inside or outside of superannuation. More than 70% of Australians that have life insurance hold it through super.

Most super funds allow for a wide range of insurance providers these days, and we often setup insurance through superannuation using the product providers on our panel by what is known as a “partial rollover”, which allows an annual amount to be debited from your super to pay the insurance company. If you pay inside super, this will affect your retirement savings, but will free up disposable income.

If you pay through superannuation, there is often a 15% tax advantage in doing soii, there is no tax discount if you pay outside of super. In addition to this, paying by partial rollover attracts a 7 to 9% annual discount depending on insurance company (although you can choose to pay upfront outside of super as well and get the discount). There can be tax implications levied upon your beneficiaries, if you hold your policy through super, when they receive the claim if the beneficiary is a non-dependent. A spouse or children under the age of 18 are generally automatically considered as dependants, and there are no tax implications.

Who gets my life cover payout?

When you sign up to 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 it comes to considering how you would like your assets distributed in accordance with your will. If you don’t have a nominated beneficiary, then your benefits often get paid to the estate for distribution.

How much life cover do i need?

The amount of life insurance cover will vary upon your individual circumstance. As are general advice company we cannot advise you on this. There are lots of available tools that can provide you a guide. For example, the Australian Government provides this Life Insurance Calculator that may provide a helpful guide to you.  If you are still in doubt, we can refer you to a financial planner upon request.

How much does life insurance cost per month in Australia?

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 smoker or 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 offered cover at all.

Spotter Life is waiting to find quotes for you

Loading...

Please check you phone for an SMS with the validation code

Sorry, this code is not valid
Phone number is valid

Important Information

Not all providers in the market are included in our comparisons. Also note, any information or advice given on our website is general. It hasn’t taken into account your objectives, financial situation or needs.

  • Extent of comparisons
  • Disclaimer
  • How we get paid
  • Privacy policy
  • Download FSG

Extent of comparisons

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.

Our Panel

AIA Encompass MetLife MLC NEOS OnePath TAL Zurich

Disclaimer

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision.

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.The products compared on this website do not necessarily compare all features that may be relevant to you. Comparisons are made on the basis of price only and different products may have different features and different levels of coverage.

Spotter Life and its advisers operate as authorised representatives of Crown Wealth Group Pty Ltd ABN 22 603 037 510 Australian Financial Services Licensee 494274. Spotter Life and its advisers are authorised to advise and deal in superannuation and life insurance products only. .

How we get paid

We (including your adviser) may be remunerated in the following various ways for the financial services provided to you.

Commission

We will receive commission on any life insurance products your adviser arranges for you. This commission is built in to the cost of the insurance. The rate of commission varies between the different product providers but can be up to 140% of the initial premium and up to 40% of renewal premiums. Based on the 140% and 40% we would receive up to $1,400 upfront commission on an annual premium of $1,000 and up to $400 of each renewal premium.

Performance Bonuses

Sometimes product providers will pay us bonuses based on the business placed with that insurer. The criteria for such bonuses are typically the volume of business placed and the level of retention of that business over time.

In the event that we receive a performance bonus it will be shared with your adviser. From that part of the bonus generated as a result of business written by your adviser, the adviser may receive up to 100% of that bonus (37.5% if you have been referred by an affiliate, with the affiliate receiving 12.5%).

Alternative Benefits

We maintain an Alternative Benefits Register which contains information about any alternative forms of payment or benefits that may be received. Please let your adviser know if you have questions about or want to inspect this register. We may receive sponsorships from product providers which contributes to the professional development of our Authorised Representatives.