Skip to Content (Press Enter)
All Life Insurance Articles

Planning • 4 min read

9 considerations when thinking about Life Insurance

Life Insurance helps to provide for your loved ones, should you die in an accident or from an illness. Here are the top 9 considerations when thinking about Life Insurance.

Life Insurance helps to provide for your loved ones, should you die in an accident or from an illness. It’s a way to protect the people who depend on you to look after them.

Here are 9 considerations when thinking about Life Insurance:

1. Do I need Life Insurance?

If anyone depends on you financially, you should consider Life Insurance. This doesn’t just mean a spouse, or children, but any person who would be financially impacted if you weren’t here.

2. How much Life Insurance cover do I need?

You should think about your final expenses including debts, mortgages and planned education costs. It’s about helping your loved ones by not adding a financial burden to the emotional strain of losing you. The right insurance for you doesn’t have to cost a lot—depending on your situation, a simple, no-frills policy can have fairly low premiums while giving you peace of mind.

3. What type of Life Insurance do I need?

There are different types of Life Insurance like Trauma (or Critical Illness Insurance), Total and Permanent Disability, Income Protection and Life Insurance (which pays out a death benefit if you die). They cater for different life-altering scenarios which would impact you and your financial dependents. It’s a good idea to visualise each scenario in practical terms, however uncomfortable the idea may be, so you’re clear about the level of cover you would like to have.

4. What will the cover include?

The dollar value attached to insurance premiums is not the only indicator of value. Insurance policies from two different providers may seem the same, based on price, but you need to check whether the cover inclusions and customisable options meet your needs. The Product Disclosure Statement will have all the details, so it’s important to make sure you understand the cover you’re paying for. You don’t have to do it alone; Insuranceline’s friendly Insurance Representatives are here to explain anything you need to know—contact us today.

5. Check what insurance is included in your super fund

Many superannuation funds, including default employer super funds, offer some Life Insurance like death benefits and Total and Permanent Disability (TPD). Insurance in super can be more cost effective than taking out a separate insurance policy yourself, and you can always add to the cover either through your superannuation fund or another policy.

6. How much should my cover be?

Cover and cost should both be taken into account when deciding the right insurance product (and premium). If you’re driven by cost, and try to find the lowest premium, you may end up with cover which doesn’t meet your needs. If you go overboard on the level of cover you want, you may have to pay premiums which make it difficult to meet your current financial commitments. Online resources, like Insuranceline’s quick quote service can help work out the right balance for you, and so can talking through the options over the phone on 13 77 87.

7. What to look for in an insurance company?

Not all insurers are the same. An easy application process and good customer service should be a given with your chosen insurer. But to make sure you’re choosing an insurer who will be there when you need them, find one with a good reputation—not just within the market, but in the type of cover you want. Industry awards, like Canstar, can help highlight the benefits of different companies.

8. Talk to people while you research insurance options

Online tools and websites can help give you an idea of the types of policy and cover you need, but there are a few people you should talk to before making a decision about your Life Insurance. You should speak with either an insurance broker or financial planner, because they can help you through the fine print, direct you to options you may not have considered, and guide you through the underwriting process. Be sure to involve your family, particularly your partner, in your decision-making process because they’re the ones who will be impacted.

9. Make a considered decision, but decide when you know enough

Exploring Life Insurance options can feel overwhelming. Choosing a simple policy which will meet your needs is preferable to delaying the decision. In the end, it comes down to you and finding the peace of mind knowing you’re protecting your family your way.

Backed by TAL

^Insuranceline Win 1 of 5 $1000 Visa Cards (Competition). Subject to the Terms and Conditions, the Promotor is offering customers a chance to win one of five Digital Visa Gift Cards valued at $1,000, in one of the four draws. Entry commences on the 1st of April 2024 and will run for four months until 11:59pm AEST on the 31st of July 2024 (Entry Period). During the Entry Period, to be eligible to participate in the Competition, customers must get a quote and take out a new Insuranceline Life Insurance, Income Protection Insurance, or Funeral Insurance policy to enter the Competition. A maximum of one (1) entry into the Competition will be awarded per eligible policy. The Promotion is not open to existing customers, or customers who have cancelled a Promoter branded policy in the 12 months prior to the commencement of the Entry Period and then taken out a new Insuranceline branded policy. Each of the four Prize Draws will take place at Level 16, 1 Denison Street, North Sydney NSW 2060 on the respective Prize Draw and Time, as listed in the table in Condition 13 (and if any Redraws if there are any unclaimed prizes, Condition 19) of the full Terms and Conditions, and the winners will be sent an email and will be attempted to be notified via phone within two (2) business days of the Draw and published on Max. retail value of the total prize pool is $20,000. To be eligible at time of the draw, customers must still have an active policy and have paid 1 month of premiums in full. View eligibility criteria and full terms and conditions here. Promoter: TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260. Permits: NSW NTP/09255, ACT TP24/00483, & SA Licence No. T24/388.

**Bonus 10% more cover is calculated on the fifth anniversary from the Policy Commencement Date. Each adult life insured will have an extra 10% of the average Funeral Insurance Cover amount held during the previous five years added to their Funeral Insurance benefit. Terms and conditions apply. Refer to the PDS for more information.

#Claims paid figures relate to all Insuranceline life insurance policies in the 2021 financial reporting year (1 April2021 to 31 March 2022). All claims on Insuranceline policies are assessed against the relevant policy terms and conditions. These terms and conditions, as well an explanation of the claims process, can be found in the applicable Product Disclosure Statement. Claims are administered and settled by the insurer, TAL Life Limited.

***Insuranceline is the longest standing provider of Funeral Insurance in Australia, based on: Strategic Insight, Actuaries & Researchers. Funeral Insurance means a policy with periodic premium payments that provides a lump sum to help pay for funeral and associated expenses when you die and excludes pre-paid Funeral Plans and Funeral Bonds.

The information provided on this website is general advice only which means it does not take into account your individual needs, objectives or financial situation. For this reason, you should consider whether it is appropriate for you, and before you decide to buy or to continue to hold an insurance product, you must read the relevant Combined Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). The PDS/FSG contains important information which will help you understand the product, including what's covered and what's not covered and to decide whether it is appropriate for you. The Target Market Determination (TMD) for the relevant product, where applicable, is also available.

If you are considering cancelling a policy you already hold in order to replace it with a new policy, make sure you read the terms and conditions of both policies before you make a decision. The cover terms may be different, you may lose benefits accrued under your existing policy, and waiting periods may apply to the new policy. Changes in your personal circumstances (such as your age, health, and employment) that have occurred since your existing policy was originally taken out may also affect your new policy. As your application for a new policy may not be accepted, and some policies may be unable to be reinstated after they have been cancelled, you should consider waiting until your new policy is confirmed before you cancel any existing cover.

Promoted by Insuranceline, a trading name of TAL Direct Pty Limited (of Level 16, 363 George Street, Sydney NSW 2000) ABN 39 084 666 017 AFSL 243260. TAL Life Limited ABN 70 050 109 450 AFSL 237848 issues the life insurance benefits. St Andrew's Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649 issues the Involuntary Unemployment Cover.

The ways in which Insuranceline collects, uses, discloses and secures your personal information are set out in the Insuranceline Privacy Policy, which is available free of charge on request.