Life Insurance

Life insurance helps your family financially if you were to die or face a permanent disability, serious injury or critical illness that takes you out of the work force. Funerals and everything that goes along with it are incredibly expensive so it’s good to have an insurance policy in place to assist your family during these times.

We will go through the various types of insurance offerings and types available in Australia.

Best Life Insurance Australia

Here is a comparison of the best life insurance policies that are available at the moment in Australia. We will keep this list updated as providers offer new plans and deals.

ProviderPlan NameMinimum Sum InsuredMaximum Entry Age
NobleOakPremium Life Direct$0.0069
Budget DirectSimply Smarter Life Insurance$50,000.0063
Insure Me NowSuperior Life Insurance Cover$100,000.0064
MedibankLife Insurance$100,000.0065
ZurichEzicover Life Insurance$50,000.0069
InsuranceLineLife Insurance Plan$0.0065
NIBValue Life Insurance$100,000.0065

How much does Life Insurance cost?

 

The cost of life insurance will vary on such factors like:

  • If you are a smoker or non-smoker
  • Your age
  • Your gender
  • If you partake in any hobbies considered risky
  • Your medical history
  • If your type of work is considered risky

These are some approximate monthly premium prices for various age groups comparing smokers and non-smokers. If you are currently smoking, it’s definitely a good incentive to quit! Not only are you saving money on buying the cigarettes, but you will improve your health and your life insurance policy will be considerably cheaper! If you are a smoker but thinking of quitting,  providers will want to see that you haven’t smoked for at least 12 months to be considered a non-smoker.

  • 30’s Male Non-smoker – $28
  • 30’s Male smoker – $54
  • 30’s Female non-smoker – $24
  • 30’s Female smoker – $40



What does Life Insurance cover?

 

There are four different types of cover available which in the event of death, permanent disability, terminal illness, a lump sum payment will be given to your beneficiaries.

  1. Income Protection Insurance – you will receive a monthly payment while you are unable to work and earn your regular income.
  2. Trauma cover – you will receive a lump sum payment if you are going through a serious injury or critical illness.
  3. Total and Permanent Disability Cover (TPD) – Much like trauma cover, this is more permanent. You will receive a lump sum payment if you are unable to be in the work force any longer due to a permanent disability.
  4. Term cover

How do I buy Life Insurance?

 

So, you’ve decided that you would like to buy a life insurance plan. There are three different methods of purchasing a plan.

  1. Apply for life insurance cover through your superannuation plan
  2. Buy life insurance directly through a life insurance provider
  3. Buy a life insurance policy through an adviser

Option number two is easier because no financial planner/adviser is involved. When applying for the cover, it has fewer medical restrictions and the cover can be obtained online, or over the phone.

If you already have a financial adviser that you are paying for, it makes sense to seek their expertise on what plan will suit your needs and budget.

To apply online, the information that you’ll want to have readily available is your date of birth, if you are a smoker or non-smoker, occupation, gender, and the policy type and payout amount you would like to receive from the cover.

The typical health conditions that providers will want to know if you suffer from are:

  • Cancer, tumors and moles
  • Anxiety and/or depression
  • Sleeping disorders
  • Asthma
  • Breast cancer
  • Prostate cancer
  • heart conditions
  • Thyroid conditions
  • Kidney or bladder disease
  • History of high blood pressure or raised cholesterol

After you have provided all of your details, the provider will get back to you either with an approval, stating the policy amount that they are willing to cover you for, or a rejection if perhaps you are seen as too high a risk to insure. This can be due to taking part in a wide range of high risk hobbies or occupation, a various amount of health conditions, or they suspect that you weren’t truthful in the application. Remember to always be completely honest and transparent when dealing with insurance companies.

Life Insurance, Trauma Cover and Income Protection Providers

 

BT Financial Group

  • Living Insurance
  • Income Protection
  • Total and Permanent Disability cover (TPD)
  • Term Life

Awards received by BT

2018

  • Conexus Financial Superannuation Awards – Best Technology Offering – BT Panorama
  • AFA Strategic Insights Awards – Life Company of the Year (Finalist)
  • AFA Strategic Insights Awards – Underwriting Team of the Year, Client Service Team
  • The Heron Partnership – 5 Star Quality Rating

2017

NobleOak

  • Life Insurance
  • Income Protection
  • Serious Illness and Permanent Disability

Awards received by NobleOak

2016

  • 2016 Direct Life Insurance Award for Trauma Rider Option – Strategic Insight
  • 2016 Direct Life Insurance Award for TPD Rider Option – Strategic Insight
  • 2016 Direct Life Insurance Award Overall Excellence Award – Strategic Insight

Real Life Insurance

  • Life Insurance
  • Income Protection
  • Funeral Insurance

Awards received by Real Life Insurance

2013

  • Money magazine’s Best of the Best 2013 Award for Cheapest Car Insurance

 

 

 

 

 

 

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