7 common life insurance questions

We’ve got answers to some of the most common life insurance questions. Learn more about life insurance and know you’ll be covered when it counts.

There are different types of life insurance policies that can help to protect your family’s financial future. With all that choice, we know it’s important for you to have peace of mind you’re choosing the right cover.

What is life insurance?

Just as you would insure your home and contents, your car, or your health, you can also help to protect your life and your lifestyle. We don’t like to think about getting sick or even worse, the death of a loved one, but when these things happen, life insurance can help alleviate some of your family’s financial stress.

Life insurance can provide your family with a lump sum payment if you’re diagnosed with a terminal illness or pass away. This extra cash can help protect your family and support them, even if you’re not around to help out.

How much does life insurance cost?

How much you’ll pay for life insurance depends on a number of factors including the level and type of cover, your age, gender, health and lifestyle.

The good news is, for many Australians, the cost of life insurance is generally more affordable than you might think.

Life Insurance policy premiums

Want to see how much your family could receive from your life insurance policy? Check out our example of what a 35 year old male and female could pay for life insurance below;

   Male  Female
 Age  35  35
 Lifestyle  Non-smoker  Non-smoker
 Cover  $120,000  $170,000
 Premium^  $6.79 p/wk  $4.81 p/wk

^This is an example only and is not a quote. Premiums may depend upon factors that include the type and level of cover selected, payment frequency, the insured’s gender, age, smoking status, health history, employment situation, occupation type, hours worked and work location plus any indexation increases, the number of insureds covered and any discounts that may apply. You may be required to take a level of cover sufficient to meet the minimum premium. Acceptance is subject to meeting eligibility criteria and underwriting requirements.

Do I need life insurance if I’m young or healthy?

Most of us are at our healthiest when we’re younger. This is an advantage with life insurance as the price of premiums is tied to your present state of health. That means a life insurance policy taken out when you’re younger can often be more affordable than what older policy-holders will pay with pre-existing medical conditions.

What type of life insurance do I need?

Many people believe life insurance is for those with dependents and debts only - but this isn’t entirely true. While life insurance can help protect your spouse and children if you pass away, there are different types of life insurance that can protect you, no matter your life stage. Usually our most valuable asset is our ability to earn an income. If you’re young with no debt you may not need comprehensive life insurance, but is it worth protecting your income? Income Protection and Accident Insurance policies can keep you afloat if you get ill or injured and can’t work.

Do I have life insurance cover through my super fund?

You’ll probably have a minimum level of life insurance cover through your superannuation fund but it’s important to check if it’s the right level of cover for your family. This is because the amount of life insurance provided through your super fund doesn’t take into consideration your lifestyle, debts and dependents. You may be able to bump up your cover or explore getting additional cover outside your superannuation to cover these factors. The Australian Government has requirements for what your employer contributes in super but there’s no minimum level of life insurance cover and this varies between superannuation funds. That’s why it’s important to look into what you’re getting. Avoid being underinsured and find a policy that suits your life.

If you’re after more information, contact your superannuation provider or you may want to chat to a financial advisor and find out how much cover you’ll need.

If I’m covered by workers compensation, do I still need life insurance?

The Australian Government offers insurance called worker’s compensation which is designed to protect you while you’re at work. This cover may apply if you’ve suffered an accident or injury during your working hours. While this type of insurance is useful, it’s worth protecting yourself outside the workplace too. Individual life insurance policies offer extra protection and generally covers you 24/7, including if you’re travelling overseas. Remember to check the details of what your policy covers so you’re not caught out.

Is life insurance worth it?

Think of life insurance as an umbrella – it won’t stop the rain but it’ll help protect you on a rainy day. Setting aside a little time to get a policy can pay off when you and your family need help most.


Ways you can help to protect your family


The Life and Income Protection Insurance suite of products described is distributed by RACQ Operations Pty Ltd ABN 80 009 663 414, Authorised Representative Number 234978 (RACQO), an authorised representative of AIA Financial Services Limited ABN 68 008 540 252, AFSL 231109 (AIAFS) and is issued by AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIAA). RACQO is a distributor only; it does not sell, issue or guarantee these products. AIAFS and other authorised representatives of AIAFS are also involved in distributing these products. Descriptions of product benefits and features are a summary only. You should consider factors like your objectives, financial situation and needs and read the relevant Product Disclosure Statement (PDS) available at racq.com/lifeinsurance before deciding to acquire or continuing to hold any of these products. The information on this website is general and does not take such factors into account so you should consider its appropriateness in the context of such factors. Cover is subject to terms, conditions, limitations and exclusions.

Insurance products issued by RACQ Insurance Limited ABN 50 009 704 152. Conditions, limits and exclusions apply. Read the PDS before making a purchase decision. Contact RACQ on 13 1905 a copy.

RACQ Travel Insurance limits, exclusions and conditions apply. This is general advice only. We do not provide any advice based on any consideration of your objectives, financial situation or needs. Please refer to the Combined Financial Services Guide and Product Disclosure Statement (available from racq.com/travelinsurance or by phoning 1300 338 821) before making a decision about this insurance. This insurance is issued by Tokio Marine & Nichido Fire Insurance Co., Ltd (Tokio Marine & Nichido) ABN 80 000 438 291, AFSL 246548. Its managing agent, Tokio Marine Management (Australasia) Pty. Ltd. ABN 69 004 488 455 (TMMA) is authorised to act on behalf of Tokio Marine & Nichido to issue its policies and handle and settle claims in relation to those policies, subject to the terms of the authority.