Retail Insurance v
ALI Insurance

Deciding what type of life insurance to get is the first step to ensure you and your loved ones are protected in life’s uncertainties. Where to get life insurance is a critical choice to make too. Pay great attention when doing online life insurance comparisons. Look carefully at the price, exclusions, benefits and claims process. Consider how much life insurance you will need to cover all outstanding debt and take care of your loved ones.

Published March 2, 2021

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You’ve just bought a house, now you’re thinking of buying some insurance to support your loved ones. 

You have several choices when taking out life insurance. One option is to go through your mortgage broker with an ALI type of policy that’s not medically underwritten.

Another option to consider is Retail Life insurance. A Retail Life Insurance is a type of fully underwritten policy distributed to customers through financial advisers, comparison websites or brokers. They are generally cheaper, have more features, benefits and generally have a higher claim success rate.

Price Comparison

Here is a sample of the approximate premium between some of the insurance brands we offer and ALI.

Take note, ALI’s premiums were calculated from $750,000 death and terminal illness benefit, which is the maximum sum insured offered. The policy includes a trauma benefit of 30% of the death benefit – $225,000.

Thus, for this scenario, we have calculated $750,000 life insurance with $225,000 trauma cover of 4 out of 9 brands we compare from Life Insurance Direct Comparison Engine. Also, all monthly premiums were calculated for a Male, non-smoker living in NSW (Table 1) and a Female, non-smoker living in NSW (Table 2), both from age 25 to 55.

Source: Life Insurance Direct Online Comparison Engine as of February 2021 and My Protection Plan Quote ALI Group as of January 2021
Source: Life Insurance Direct Online Comparison Engine as of February 2021 and My Protection Plan Quote ALI Group as of January 2021

Everyone’s requirements and situations are unique. Therefore, you may want to request a quote today to discover which life insurance policy is best for you.

If you want to understand more about the differences between Retail Life insurance and ALI insurance’s one policy with three benefits – My Protection Plan, we have put this great resource together for you to read!

Life Insurance

Life InsuranceRetail InsuranceALI My Protection Plan
Illnesses Covered
More info
Accidents Covered
More info
Terminal Illness Benefit
Diagnoses of less than 12-24 months to live

Diagnoses of less than 12 months to live
Funeral Advancement1
Varies depending on insurer. Refer to relevant PDS for more information.
Child Cover1
Varies depending on insurer. Refer to relevant PDS for more information.
Standard ExclusionsSuicide within the first 13 monthsSuicide or an intentional,
self-inflicted act within the first 13 months
Expiry Age90-130 – Varies depending on insurer. Refer to relevant PDS for more information.99

TPD Insurance

TPD InsuranceRetail InsuranceALI My Protection Plan
Total & Permanent Disablement Definition2
Any Occupation, Own Occupation – Varies depending on insurer. Refer to relevant PDS for more information.
Not Available
Accidents CoveredNot Available
Illnesses CoveredNot Available
Partial Benefit Payable for the Loss of One Limb or One Eye1
Varies depending on insurer. Refer to relevant PDS for more information.
Not Available
Life Insurance Buy Back
Varies depending on insurer. Refer to relevant PDS for more information.
Not Available
Minimum Claim Qualification Period3 monthsNot Available
Standard ExclusionsIntentional self-inflicted injury or any such attempt by youNot Available
Guaranteed Renewable Age54-70 – Varies depending on insurer. Refer to relevant PDS for more information.Not Available
Expiry Age64-99 – Varies depending on insurer. Refer to relevant PDS for more information.Not Available

Trauma Insurance

Trauma InsuranceRetail InsuranceALI My Protection Plan
Number of Traumatic Conditions CoveredUp to 683 – Varies depending on insurer. Refer to relevant PDS for more information.13
Number of Partial Traumatic Conditions IncludedUp to 333 – Varies depending on insurer. Refer to relevant PDS for more information.
Maximum Pay out for a Partial Condition3
Varies depending on insurer. Refer to relevant PDS for more information.
Life Insurance Buy Back3
Varies depending on insurer. Refer to relevant PDS for more information.
Trauma Reinstatement3
Varies depending on insurer. Refer to relevant PDS for more information.
Is this a Basic, Standard or Plus Policy3
Basic, Standard or Plus policy available – Varies depending on insurer. Refer to relevant PDS for more information.
Basic
Qualifying PeriodUp to 90 daysUp to 90 days
ExclusionsSuicide within the first 13 months, any intentional self-inflicted injury, attempted suicide, or any qualifying periods3Suicide within the first 13 months, any intentional self-inflicted injury, attempted suicide, or any qualifying periods.
Guaranteed Renewable Age69-753 – Varies depending on insurer. Refer to relevant PDS for more information.64
Expiry Age69-803 – Varies depending on insurer. Refer to relevant PDS for more information.64

Income Protection

Income ProtectionRetail InsuranceALI My Protection Plan
Sicknesses CoveredNot available
Accidents CoveredNot available
Own Occupation Disablement Definition
Varies depending on insurer. Refer to relevant PDS for more information.
Not available
Monthly BenefitUp to $60,000 – Varies depending on insurer. Refer to relevant PDS for more information.Not available
Waiting Period14 – 730 days – Varies depending on insurer. Refer to relevant PDS for more information.Not available
Benefit Period2 years – up to age 70 – Varies depending on insurer. Refer to relevant PDS for more information.Not available
Standard ExclusionsSuicide within the first 13 months, intentional self-inflicted act, your participation in a criminal activity, for any period you are incarcerated, taking part in service in the armed forces, uncomplicated pregnancy, or childbirth.Not available

Income Protection (Accident Only)

Income Protection (Accident Only)Retail InsuranceComplimentary Accidental Injury Benefit
Own Occupation Disablement Definition
Varies depending on insurer. Refer to relevant PDS for more information

Working more than 20 hours per week in your usual occupation
Sicknesses Covered
More info
Accidents Covered
More info
Benefit Period2 years – up to age 70 – Varies depending on insurer. Refer to relevant PDS for more information – Varies depending on insurer. Refer to relevant PDS for more information.Up to 3 months
Waiting Period14 – 730 days – Varies depending on insurer. Refer to relevant PDS for more information.30 days
Monthly Benefit Up to $60,000 – Varies depending on insurer. Refer to relevant PDS for more information.1% of the LI sum Insured up to $2500 per month
Standard ExclusionsSuicide within the first 13 months, intentional self-inflicted act, your participation in criminal activity, for any period you are incarcerated, taking part in service in the armed forces, uncomplicated pregnancy, or childbirthSelf-inflicted insured events, intoxication of the insured, flying, other than as a fare-paying passenger, an activity engaged in more than 20 metres above ground or 30 metres below it, an act of war, participation in any criminal activity, or any qualifying periods

General Policy

General PolicyRetail InsuranceALI My Protection Plan
Worldwide CoverNot stated in PDS
Cooling off Period14 – 30 days – Varies depending on insurer. Refer to relevant PDS for more information30 days
Annual Discount
Multiple Lives Discount
Varies depending on insurer. Refer to relevant PDS for more information.
$7 a month
Multiple Cover Discount
Premium Freeze
Eligibility and availability varies depending on insurer. Refer to relevant PDS for more information
Health Rewards Program
More info
Interim Cover
Standard ExclusionsSicknesses or injuries that first appeared, happened, or was diagnosed before your insurance started or was reinstated that have not been disclosed and accepted by the insurer. Non-disclosure (or inaccurate disclosure) can also void or affect your cover.Exclusions for pre-existing conditions – Type A (a list of ongoing and chronic conditions) and Type B (family medical history) see PDS pg 12, Suicide/self-inflicted insured events within 13 months (Death and Terminal Illness), Self-inflicted insured events (Trauma and Accidental Injury Benefits), Any insured condition existing at commencement (or in first three months for six insured conditions marked*) see PDS pg 10

Source: Retail Insurance Product Disclosure Statements (PDS) and ALI Product Disclosure Statement. Issue date 22 June 2020 (PDS)

1 Feature not included under a super policy.

2 Own Occupation Definition not available under a super policy.

3 Trauma Cover not available under a super policy.

Retail Life Insurance Policies can be further customised

  • 1. Customise your Insured Amount

    You can choose the amount of cover so it suits your circumstances and budget. Typically, insurers have no maximum cover limit.
  • 2. Customise your Premium Style

    Several premium styles are available:

    Stepped – Increase each year due to a change in your age but starts more affordable than level premiums.
    Level – Start off more expensive than stepped premiums but do not increase each year due to your age change.
    Hybrid – Start on a stepped level plan but convert to level premiums.

  • 3. Ownership Structure Options

    When taking out a retail policy, you can generally choose several different ownership structures:

    Self Ownership – You can select to own your policy yourself, giving you control over the policy.
    Joint Ownership – Joint ownership is when two or more people own the policy, such as a husband and spouse.
    Cross Ownership – Cross ownership allows a husband or wife to own their spouse/partners policy.
    Superannuation Ownership – If you elect to take out cover through your super fund, the super fund becomes the owner of your policy.

  • 4. Policy Structure Options

    If you are looking at taking out multiple cover types, you generally have two options:

    Combined Policy – Take out a combined policy where multiple cover types are combined into one policy with one premium i.e. a combined life, trauma and TPD policy.
    Stand Alone Policy – Take out individual policies for each cover type i.e. stand-alone life, trauma, TPD and income protection policies.

  • 5. Customise Your Policy Options

    One of the significant advantages of an individual retail policy is the ability to customise it to suit your needs, including choosing to add any policy options. Typical policy options for life insurance include:

    Child Cover – Select insurers offer free child cover of up to $10,000 covering death, terminal, and critical illness. You can generally also elect to take additional cover out for your children of up to $250,000.
    Accidental Death InsurancePays out a benefit if death is caused by accident. This can be a stand-alone policy, or an additional option to a life insurance policy.
    Business Future Insurability – Business Future Insurability allows you to increase your insurance level if a significant business event occurs.

  • 6. Income Protection Policy Options

    Bed Confinement – Pays 1/30th of your monthly benefit for each day you are confined to your bed during your waiting period
    Day 1 Accident Cover – If you are totally disabled due to an accident and continue to be totally disabled for at least 3 days, you will be paid 1/30th of your monthly benefit each day you are totally disabled.
    Increasing Claims Benefit – If you go on claim, your monthly benefit will increase, allowing your benefit to keep up with inflation.
    Lump Sum Benefit – If you are totally disabled to an extent that you meet the totally and permanently disabled definition, you may elect to receive a lump sum rather than a monthly benefit.
    Superannuation Contribution Option – This option allows you to insure an additional 5% of your income to go towards superannuation contributions.

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