Compare Life Insurance

Compare life insurance policies from a panel of trusted companies side-by-side with Savvy.

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, updated on September 8th, 2023       

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Life Insurance

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

The first step you should take when in the market for a new life insurance policy is to compare the offers available to you. Doing so can help you make a more informed choice on which offers provide the cover you’re looking for, any attractive benefits or are available at an affordable cost. The comparison process is 100% online when you consider your options with Savvy, while you can also speak with a life insurance expert over the phone before you buy.

With offers from a list of some of Australia’s most trusted life insurance providers, you can look at competitive deals in one place before you decide on which policy to purchase. Simply fill out a free, no-obligation quote to get started with us today.

How do I compare life insurance policies?

A comparison of life insurance products may help you find a policy which best meets you and your loved ones' needs. When you're considering your options through Savvy, you'll want to contrast several factors, including:

Type of cover

There are several different types of life insurance, so it’s important to understand how each of these is unique and the cover they can offer you. All coverage is subject to your insurer’s terms and conditions, so it’s important to familiarise yourself with what is and isn’t covered before you buy.

Premiums

The price you pay for your life insurance, known as a premium, can vary depending on a range of factors, such as the type of policy you buy, who you purchase it through and, most importantly, your individual profile. This will include areas such as your age, occupation, medical history and whether you smoke. In addition, premiums for life insurance may be either stepped or level with certain companies. Whereas level rates may be more expensive upfront but cheaper when you’re older, stepped premiums rise yearly as you age.

Inclusions

Compare different policies by making sure you get the most out of your insurance premiums. Depending on what you buy and who you buy with, life insurance policies may include benefits such as funeral cost advancement, coverage for trips outside the country and inflation-proofing.

Exclusions

It’s important to note that several circumstances aren’t covered by life insurance. For instance, travel to regions of active conflict or warzones can void your life insurance claim, as can suicide (though some insurers may cover this outside the first 13 months of your policy). Considering these while comparing policies from different providers is essential.

Waiting periods

After purchasing a life insurance policy, it may take time for your coverage to kick in. For instance, with income protection insurance, there is usually a waiting time of two weeks to two years which you can select before you can make a claim. As such, it’s worthwhile taking the time to consider different policies to determine whether there are any which can offer the waiting period you’re after.

Covered amount

Life insurance's key benefit is providing financial support to those left behind if you pass away or become critically injured or ill. As such, it’s important to buy enough coverage to account for costs your loved ones may have to pay in your absence. However, these limits may change depending on the type of cover you’re after, so it’s important to consider different offers and look for one which can facilitate the payout you’re looking for.

What factors can impact the cost of my life insurance?

There isn’t one cost which applies when it comes to life insurance, with the price of your premium instead coming down to a unique set of variables. These include:

Your age

Age is one of the critical factors in deciding how much you pay for a life insurance policy. Younger people are likely to pay less for life insurance than older people, with the risk of developing serious illness and disease increasing as you age. That doesn’t mean it isn’t still important to compare offers based on their cost if you’re a senior, though.

Any pre-existing conditions

Insurance premiums are often more expensive for those who have a pre-existing medical condition, which is why some providers may require you to undergo a medical exam as part of the application process. They'll look at several factors, with your weight, height, blood pressure and cholesterol levels being the most sought-after pieces of information. Those with pre-existing conditions may pay more for their life insurance in line with any increased risk your insurer perceives.

Your job

Firefighters, telephone linesmen and high-rise window washers may be among the types of occupations insurers deem high-risk. As such, if you’re looking to take out life insurance and work in one of these areas or another which may pose risk to your safety, you may find you’ll be paying a higher premium on your policy than someone with an office job, for instance.

Your hobbies

The cost of your life insurance may be affected by the type of hobby you pursue. Those who prefer reading or jigsaw puzzles to, say, paragliding, motorcycle riding or bungee jumping are more likely to gain access to cheaper premiums.

Smoking or alcohol use

While a pack of cigarettes may be expensive, so too is life insurance if you’re a smoker. Smokers attract higher premiums on their policies because of the known links to serious conditions such as heart attack, stroke, cancer and other critical diseases. On the other hand, while a few drinks won’t rule you out of getting life insurance, you may pay a higher price if you’re an excessive drinker. Also, if you use recreational or unprescribed drugs, you’ll pay a higher premium or your application may be declined.

What types of life insurance policies should I compare?

Insurance companies offer a few different types of policy, which you can compare quotes for with Savvy today. These include:

Life cover

Life cover can provide your loved ones with a financial cushion in the event of your death or terminal illness diagnosis (subject to your insurer’s terms and conditions) so they can continue making payments on things such as the mortgage or credit cards. There are no set limits regarding how much you may be able to be insured for under a life cover policy.

Income protection insurance

Income protection insurance can provide you with an ongoing benefit if you’re unable to return to work for an extended period due to illness or injury. This type of insurance can cover up to 70% of the income you were earning prior to your injury or illness, which may allow the policyholder to continue making payments on their mortgage or rent, focus on their recovery and eventually return to work. You’ll also generally be able to choose your benefit period, which may range up to five years or up to the age of 65 with some insurers.

Total and permanent disability (TPD) insurance

This type of insurance is designed for those whose illness or injury leaves them permanently disabled and prevents them from ever working again. There are two main options for this insurance: cover if you can’t undertake your current job or a policy if you’re unable to undertake any work suitable to your training, education and qualification. Coverage varies from person to person and depends on the cover you buy, but some insurers can offer a payout of up to $3 million to $5 million.

Trauma insurance

Trauma insurance can pay out a sum of money if you’re diagnosed with a critical illness or suffer a major injury, though longer-term conditions such as Alzheimer’s disease can also be included. Some common claims on trauma insurance include cancer, heart attacks and strokes. A payout under this type of cover, which may be up to $2 million, allows you to pay for your ongoing medical costs that Medicare or your private health provider doesn’t pick up.

Types of life insurance

Why compare life insurance through Savvy?

Our step-by-step guide to buying and comparing life insurance

Top tips for saving money on your life insurance

Compare with Savvy

Savvy simplifies the process of comparing life insurance plans from a range of providers. You can compare plans from our partner’s panel of some of Australia's most reputable insurers and determine whether there are any which meet your needs. Crucially, before committing to a policy, you can compare its features side-by-side with other offers.

Pay an annual premium

Some life insurance providers offer discounts for paying your premium annually instead of monthly. They may offer up to 10% off if you sign up and pay your premium upfront, as it means fewer administration costs for them. However, it’s important to pay premiums as often as you’re comfortable.

Consider your lifestyle

Quitting smoking, hitting the gym and taking up some safer hobbies can be ways of reducing the cost of your life insurance. For example, being a smoker usually doubles the cost of your life insurance, so if you were to ditch the cigarettes for 12 months, you could save hundreds of dollars on your policy almost immediately and even more throughout your lifetime.

Only pay for the cover you need

While some insurance companies allow you to take out coverage in the millions of dollars, your loved ones may not need that financial security if you have sufficient savings and/or super. As such, it’s worth drawing up a budget and working out exactly what they’ll need to live on before choosing a level of cover.

Frequently asked life insurance questions 

Do age limits apply on life insurance policies?

Yes – most life insurance companies will allow you to purchase a new policy up to a maximum entry age, which may vary between 60 and 75 depending on your insurer and the type of cover you take out. They also have different age limits for the expiry of a policy, which may vary from 65 to 99 (or up to 130 with some insurers). 

What happens if I’m injured or become sick overseas?

If you’re an Australian resident, your life insurance policy can cover you when you travel outside Australia. However, you won’t be covered if you intentionally go to a risky area; therefore, it’s important to follow travel warnings given by the Australian government and determine whether worldwide cover is a feature under your policy.

Should I purchase the cheapest life insurance?

While saving money on your life insurance policy can be tempting, you may need more than the cheapest deal. Opting for a cheap sale may provide you with a lower payout which may need to be increased for your family to live on if you pass away. As such, the cheapest isn’t always the best when it comes to life insurance.

Is life insurance tax-deductible?

Life insurance premiums may be tax-deductible if you’ve purchased your policy through your superannuation fund (though these will generally be claimed for you by your fund). However, premium payments made on income protection may be tax-deductible no matter if you bought your policy inside or outside your super fund. If you’re unsure about whether to include your premiums in your tax return, speak with your accountant.

What can I use my life insurance payout for?

There are no restrictions on what your family can use your life insurance payout for if you pass away. However, many people use them to settle the cost associated with funerals, medical bills, outstanding debts and day-to-day living costs.

What’s the difference between term life insurance and whole of life insurance?

A term policy covers you for a certain number of years, while a whole of life policy ran for the lifetime of the policyholder. Whole of life insurance is no longer available in Australia, meaning you won’t be able to purchase a new policy if you haven’t already.

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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.