Life insurance is a touchy subject, but it is also one that should not be ignored. Tragic or sudden circumstances can leave families and loved ones in rough situations both personally and financially. However, only around 12 million Australians currently have life insurance. That sounds like a lot, but it is only around half of the population of 24 million.¹ And many people who do already have life insurance may be paying more than they should. Modern life insurance plans are convenient, accessible, and affordable compared to many other expenses.
How Much Does Life Insurance Cost?
The average cost of life insurance in Australia is around A$5 per week. This fluctuates based on medical history, age and other factors, of course. Specifically, for example, life insurance with a A$250,000 payout for a healthy 40-year-old male equals out to a cost of A$4.40 per week, or A$211 per year. The same package for a healthy 40-year-old female is only A$2.81 per week, however. So much for gender equality, right? Some Australian life insurance plans can be obtained for significantly less as well, so it all depends on your specifics and what you are looking for in terms of life insurance.²
Why Get Life Insurance?
Younger people particularly have a lower rate of purchasing life insurance, but thinking ahead can be a good thing. Not only is tragedy possible, but life insurance that also covers illness, accidents and other tragedies can provide cover and security if things go off track.³ The future is highly unstable even at the best of times. If your family is left behind with massive bills like a mortgage and a car lease, life insurance can help ease the burden significantly.
In a situation in which your salary is no longer being drawn, life insurance can be a major source of funds for your bereaved family—including to pay for your funeral and burial. This is no small thing, and even though it is not pleasant to consider, it is logical and smart. It’s a great idea to look online and compare different policies and quotes to find the best life insurance plan for your needs.
Some Australian Life Insurance Options: TAL
TAL Life Limited was established three decades ago and has rightly earned a reputation as a reliable and honest life insurance company. In the last available figures, TAL paid out A$1.6 billion in claims in 2018 covering illness, injury and death.⁴ TAL is owned by the Japanese company Dai-ichi, but it continues to receive the highest recognition across the industry for its honest service and customisable, affordable packages.⁵
Zurich Australia is another dependable, high-quality insurance company offering reasonably-priced and reliable life insurance. Although it is Swiss, the company—which was established in 1872—has a large location right in Sydney and offers a number of good packages including coverage for death and a Sumo package which covers a variety of situations including income protection and discounts when multiple family members make a purchase.⁶
Metlife and Allianz are two more options which are definitely worth looking into. Both of them offer customisable and good packages, including coverage of terminal illness. You simply have to answer various questions about your background, profession and personal life such as whether you smoke in order to determine the precise cost of your package. They offer coverage for individuals, corporations and organisations as well, so the range of coverage is quite broad.⁷
Stay Informed and Save
Whether you already have a life insurance policy or you’re looking to get one for the first time, one of the best things you can do is keep educated. Insurance plans are changing all the time, and new promotions are common. A simple search online will reveal the most recent promotions and brands offering life insurance in Australia.
By getting a few quotes and performing a cost-benefit analysis, you can find a plan that suits your needs best. If you’ve already got insurance, you can make sure the plan you’re on still makes the most sense. Who knows, you may find something even better and more affordable.
Remember, it is always best to plan ahead. A life insurance policy can provide stability and peace of mind for families in the event of an expected passing.