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Best Life Insurance

Compare life insurance with Savvy to help you find the best policy from a panel of trusted insurers.

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, updated on July 19th, 2023       

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We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

When comparing life insurance policies, it’s important to look for the best one for you and your family’s needs, whether that be in relation to its inclusions, coverage or other conditions. However, with so many options on the market, it isn’t always a simple process to work out what that may be.

You can compare a range of competitive life insurance quotes with Savvy from a panel of reputable companies. Consider offers side-by-side before you buy to help determine which is the best for your needs among our listed providers. Get started with Savvy today by filling out an easy, no-obligation quote.

How do I get the best life insurance?

Working out which life insurance policy is best for you may seem tricky, but there are ways to help you find the right product for you and your family. Doing the following may help you narrow down your choices:

  • Compare different policies: do your homework thoroughly and make sure you scan a variety of policies. Look not only at things like inclusions and cost but also the benefit limits. It’s important that your choice of cover supports your situation. You can consider policies from a range of insurers in one place by filling out an online quote with Savvy.
  • Determine which policy is right for you: there are four main forms of life insurance cover which you can compare: life cover, trauma insurance, total and permanent disability (TPD) insurance and income protection insurance. Each type offers financial protection for different situations. As such, you’ll need to compare the pros and cons of each type of life insurance and decide which provides you with the best cover when you need it the most, as well as consider how much coverage you need. You may choose to take out a combination of two or more if you’re looking to maximise your potential coverage.
  • Ensure that your policy coverage is appropriate: break down your finances and calculate how much cover you’ll need if a worst-case scenario does eventuate. By doing so, you may increase your chances of being underinsured (having to pay out of pocket in the event of a claim) or overinsured (potentially paying more for insurance which offers protection where you don’t need it).

What is the best type of life insurance for me?

The best life insurance will depend on you and your preferences, as each individual is different in terms of the coverage they need. The different types of life insurance to consider are:

  • Life cover (also known as term life insurance): life cover can pay out a lump sum to your nominated beneficiaries when you pass away. There are no set limits for life cover payouts. Additionally, your policy may pay out if you’re diagnosed with a terminal illness. There are additional benefits which may be included in your life cover policy, such as advance payments for urgent expenses (such as for a funeral) and inflation-proofing, which may help you determine the term life insurance policy which is best for your needs.
  • Trauma insurance: in the event of a critical illness or serious injury, trauma insurance may be able to assist you by providing a lump sum to support your financial needs. Trauma insurance is designed to provide you with financial relief and help you focus on your recovery, with maximum payouts reaching $2 million with some insurers. This money can be spent on whatever you please, including medical expenses, everyday bills, household debt or ongoing living expenses.
  • TPD insurance: if you’re permanently disabled and unable to return to work, TPD insurance may be able to support you, your partner or your family by providing a lump sum payout worth up to $3 million to $5 million (depending on your insurer and their terms and conditions). It’s designed to offer cover if you’re unable to return to work either in the same job you had prior to your disability or in any job relevant to your experience or education.
  • Income protection insurance: income protection insurance can cover you for up to 70% of your annual income if you’re seriously injured or critically ill and can’t return to work for an extended period (not permanently). As opposed to a lump sum payment, income protection insurance is an ongoing benefit designed to serve as a partial replacement for payslips.

What are the benefits of the best life insurance policies?

When it comes to finding out which term life insurance policy is best for you, these are some of the benefits to look which may help set the best policies apart from the rest: 

  • Much-needed financial cushion: if the worst happens and you are out of work with no income, or your partner or family has no financial support, life insurance can help meet the financial needs of you or your loved ones should your situation qualify for coverage.
  • Flexible policies: despite the complexities of life insurance, it can be very flexible and offer various types of cover which can benefit different people in many situations.
  • No spending restrictions: there are no restrictions on how you may choose to spend your benefit amount. It can go towards covering medical expenses, debts or living expenses, or something else like a holiday for you and your family.
  • Peace of mind: if you’re critically ill, seriously injured or pass away, you may experience greater peace of mind that you may be able to receive a lump sum or ongoing benefit for a variety of different unexpected circumstances.

Types of life insurance

Why compare life insurance through Savvy?

How to compare life insurance quotes

Top tips for working out how much life insurance coverage you may need

Consider your own situation

How much you own, earn and save may change across your lifetime. For example, if you’re a single parent or provide for a family, it may be more important that your loved ones receive a larger insurance payout. This may be different for you if you have sufficient savings and are no longer depended upon to provide for your family.

Break down any debts

Your debts still need to be paid, even if you pass away or become critically ill. With that in mind, you’ll need to work out the right amount to cover the repayment of these if the unexpected happens. These debts could include a mortgage or credit card payments.

Think about future costs

If you’re raising a young family and suddenly pass away, your partner or spouse may still need to put your children through school and other extracurricular activities such as sport or music. They may also need money for their retirement if you’re no longer able to contribute to the household’s savings. These are all things you should consider when working out the cover you need.

Take your budget into account

The amount of cover you need or should take out may also be partly dictated by what sort of premium you can afford. The greater the insured sum, the more expensive your premiums may be. You’ll need to consider the cost of your premium in both the short and long-term regarding your budget.

Frequently asked questions about the best life insurance

Are my life insurance premiums tax-deductible?

Life insurance can be tax-deductible, depending on the type of policy and how you purchase it. For instance, while life insurance bought outside super generally isn’t tax-deductible, it can be when purchased through super. However, income protection insurance is typically tax-deductible regardless of how it’s purchased. Speak with your accountant to double-check whether you’re able to claim your premiums as a deduction if you’re unsure.

Can I bundle together different types of life insurance policies?

Yes – combining different life insurance policies and purchasing with the same insurer may enable you to access a discount on your cover. If you’re looking to purchase multiple policies, such as life cover and income protection insurance, it may be worth comparing different providers to see whether you can save money by doing so.

Can I take out life insurance as a senior?

There are life insurance policies available on the market which are designed to cater to seniors. However, whether your insurer can offer you the coverage you’re looking for will depend on a variety of factors, such as your age and whether you suffer from any pre-existing health conditions. For instance, policies will have a maximum entry age, which may vary from 60 to 75 depending on the policy and insurer, and most will also have an expiry age, which may be set at 99 (though some insurers may set this as high as 130).

Will I be taxed on any lump sum payment I receive from my life insurance cover?

This will depend on the nature of your payout and who your beneficiaries are. For example, policies which come with a lump sum payout and go to a financial dependent, such as your partner or child, are generally tax-free. However, income protection insurance benefits are generally taxable, as are payouts going to a non-dependent person or persons. Check with a financial professional if you’re unsure whether you or your family may need to pay tax on a life insurance benefit.

Am I able to access life insurance coverage if I have pre-existing health conditions?

Whether you can take out life insurance coverage with a pre-existing condition will largely come down to the nature of the condition and your insurer's terms and qualification criteria. Some of the ways pre-existing conditions may be dealt with under a life insurance policy include:

  • A loading (additional premium) may be charged to cover your condition
  • Cover may be provided if you haven’t experienced symptoms or treatment for a set period, such as five years
  • Specific exclusions may apply for certain conditions
  • Some may apply a blanket exclusion for all pre-existing conditions

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Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

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