Life insurance for the people who rely on you
Life insurance pays a lump sum to the people you choose if you die, and under most policies if you're diagnosed with a terminal illness. It can be held inside your super or owned personally.
- A lump sum for your beneficiaries or estate
- Terminal illness benefit included in most policies
- Can be paid through super or out of pocket
You'll be contacted to prepare your quotes.
Life insurance at a glance
What it is
A lump sum paid if you die or, under most policies, if you're diagnosed with a terminal illness as defined in the policy.
Inside or outside super
Life cover can be held in super or owned personally. Where it sits affects who receives the money, how it's paid and how it's taxed.
Things to know
The insurer sets the terms in its Product Disclosure Statement (PDS). Exclusions apply, such as suicide within the first 13 months of a new policy.
What life insurance can help with
A life insurance payment goes to the people you choose. People commonly use it towards:
- Paying off the mortgage or other debts
- Everyday living costs for a partner and children
- Childcare, school and education costs
- Funeral and estate costs
- Time for the family to adjust without money pressure
You choose how much cover to ask for. We don't give personal advice. If you'd like personal advice, we can refer you to the insurer that issues the cover.
Features to ask about
Terminal illness benefit
Most policies pay the benefit early if you're diagnosed with an illness that's likely to lead to death within a set period, often 24 months.
Stepped or level premiums
Stepped premiums are recalculated each year and generally rise with age. Level premiums are based on your age when cover starts and generally don't rise because of age.
Choosing who's paid
Outside super you nominate beneficiaries on the policy. Inside super the trustee pays the benefit, guided by your death benefit nomination.
Increasing cover later
Some policies let you increase cover at life events, such as a new child or a new home loan, without new health questions, within set limits.
Life insurance through super or out of pocket
You can generally hold this cover either way. Here's how the two compare.
Through super
- Premiums come out of your super balance, not your take-home pay
- Premiums reduce the amount you'll have at retirement
- The benefit is paid to the super trustee, then to your dependants or estate under super law
- Payments to someone who isn't a dependant for tax purposes, such as an adult child, may be taxed
Out of pocket
- You pay premiums from your own money
- You choose your beneficiaries directly on the policy
- Payments to your beneficiaries are generally not taxed
- Premiums for life cover are generally not tax-deductible
General information only. Funds and insurers set their own terms, and tax depends on your circumstances. Speak with a registered tax agent about tax.
Getting started takes three steps
You'll be contacted to prepare your quotes. Nothing to pay to ask.
Ask for a quote
Tell us which cover you'd like and how much cover you want, then add your name, mobile and email. It takes about two minutes, with no health questions.
You're contacted
You'll be contacted to confirm the cover and amounts you'd like, and your quotes are prepared.
Apply if you're ready
If you decide to go ahead, the business that prepared your quotes, or the insurer, will explain how to apply. The insurer assesses your application and issues the policy.
Life insurance FAQs
Is life insurance the same as funeral insurance?
No. Funeral insurance usually pays a smaller fixed amount towards funeral costs. Life insurance is generally a larger lump sum that's assessed against your health and circumstances when you apply.
Can I have life cover both inside and outside super?
Yes. Many people hold cover in more than one place, for example default cover in super plus a policy they own personally. Each policy's PDS explains how it works alongside other cover.
Do I already have life cover through my super?
Many super funds provide default death cover to members. Check your latest annual statement or log in to your fund's website to see what you hold.
What isn't covered?
Exclusions are set out in the PDS. A common one is suicide within the first 13 months of cover. The insurer may also apply specific exclusions to your policy when it assesses your application.
How long does cover last?
Cover generally continues while premiums are paid, up to an expiry age set out in the PDS. Cover held in super often ends at an earlier age than cover held outside super.
Start the conversation today
It takes about two minutes. You'll be contacted to prepare your quotes. There's no cost to ask, and no obligation to go ahead.
Get a quote