Coles Life Insurance

Coles Life Insurance was meant as an affordable cover option that would serve to complement their already established car and home insurance products. However, after only two and a half short years, Coles stopped new policy sign-ups and transferred all life insurance policies to Metlife Essentials, which had been underwriting the Coles life insurance policies up until that time.

Coles Life Insurance recently transferred all their policies to Metlife Essentials.

The Australian Supermarket celebrated their 100th birthday in April 2014 just before the launch of their life insurance product in May of that same year. At the end of December 2016, life insurance clients received a letter from Coles informing them of their decisions to discontinue their life insurance offering, opting to transfer all policies to Metlife Essentials.

You may want to know

Does Coles Life Insurance Present Value for Money?

Coles prided itself on offering very affordable life cover, stating that clients would pay as little as $1.00 per week for a policy. Our extensive research revealed these statements to be less than accurate.

We compared Coles Life Insurance with 32 other Major Brands in Australia and found Coles to be severely lacking in many important aspects. For example, a 40 old male with 1,000,000 worth of cover would pay $43.96 more for a Coles policy than the average advised (Retail) policy and a female of 40 years with 1,000,000 cover would pay $45.33 more for a Coles policy compared to the average advised (Retail) policy.

Research reveals that the Coles policy provided poor value for money

This increased pricing was consistent across all age bands from age 25 to age 65. While the research didn’t cover every scenario in general Coles policy provided poor value for money. If you have a Coles Life Insurance policy, we suggest you shop around to see if you can find a better value.

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Coles life insurance review

A quick review of the Supermarket’s Policy features.

Life cover to be paid as a lump sum benefit to your beneficiaries in the event of your death.
If you were diagnosed with a terminal illness, your life cover benefit would be provided to you as financial support; this will however effectively end your policy.
If the claims department were to receive satisfactory evidence of your death a $10,000 advancement from your sum insured will be provided to your primary beneficiary. Usually paid within 24 hours of receipt of the valid claim, the money could potentially assist with funeral expenses.
As an optional extra you could add Coles accidental injury cover, which helps with medical expenses in the event of injuries suffered. However, the injuries claimed must be listed in the PDS.
The future life event benefit allows you to increase your cover amount without the need for further health questions. Applicable if you are 55 years old or younger and life cover does not exceed $200, 000.

Coles life insurance pros and cons

Is supermarket life cover in Australia a good idea? We take a closer look at the strengths and weaknesses of the Coles offering.

Pros Cons
A guarantee to beat the premium price of any comparable Direct Life Insurance policy. Although offering to beat any Direct Life Insurance Policy, Coles was still more expensive than the average retail policy.
Quick quotes in 60 seconds. Quick quotes may not take all your specific needs into consideration, leading to insufficient cover.
Quick and easy application process. Depending on the health information provided in your application, you might only qualify for accidental death cover for up to $500,000.
No underwriting needed, no medicals or blood test. Lack of underwriting increases policy price. One of the issues revealed in our Quote index research is that direct policies are priced higher because they’re asking less underwriting questions.
You’re able to increase your cover up to 5 times without the need of further health questions. Lack of medical tests and underwriting when increasing cover may lead to an increased likelihood of future claims being denied.
Able to choose between stepped and level premiums. No option to combine stepped and level premiums for the perhaps more affordable hybrid option.
Optional kids cover benefit. Extensive child cover exclusions, including the exclusion of cover if harm came to the child due to any medical conditions that were present before or at birth.
Rewards: Collect +1 flybuys extra point per $1 you spend at Coles. Extensive Exclusions to accidental injuries. For example, if you were to suffer more than one injury at the same time, Coles would only pay a benefit for the specified injury with the higher specified cover amount.
Rewards: 2,000 flybuys points = $10 savings at Coles Supermarket. Transfer of policy ownership is not allowed.
Coles had a dream of creating a simple life cover product. However, such simple products usually come at a price and extensive exclusions. Coles life insurance policies, now transferred to Metlife Essentials, is now deemed a legacy product because it is closed to new customers.

Coles Life Insurance FAQ’s

Your policy will remain unaffected; it is simply transferred from Coles to Metlife that has been underwriting your policy all along, and the policy is now called Metlife Essentials.

The transfer from Coles to Metlife happened on the 1st January 2017, and all existing policyholders we notified in December 2016 (by mail) about the proposed transfer.

Coles life insurance was generally found to be more expensive than the average retail policy. You might want to shop around. Feel free to use our Quote Index which compares 32 brands or complete the quote form request above to compare your Coles Life Insurance Premium to 11 other companies. We have also got the Lowest Price Guarantee*.
No. While we assume there were aspirations for a Coles Income Protection policy at some point, their current offering does not include it. In fact, Coles did not include:
  • Income protection,
  • Total and permanent disablement cover or
  • Trauma insurance.
Published: February 17, 2017

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