These days you can barely watch a full hour of television before an Insuranceline ad pops up to tug at your heartstrings. Have you seen the one with the dad and the baby? It’s adorable, but after seeing it for the umpteenth time, it makes you wonder why they’re spending so much on advertising.

In fact, in December 2015 ASIC issued Insuranceline with a hefty penalty, stating misleading advertisements of its income protection product. ASIC felt the fine print in the advertisement, listing lengthy waiting periods, was insufficient and lacked clarity and prominence.

While they immediately ceased broadcasting, it serves as a reminder to always clearly and accurately promote the benefits the product in practice will provide.

In light of all the adverts we see on TV and continual promotion we decided it was time to set our research team onto the product to see if it really lived up to expectations.

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Firstly we compared premiums. Secondly, features and lastly how many exclusions or reasonable exclusions they have compared to other insurers products in the market.

Essentially, our research found that Insuranceline did not provide good value compared to other policies we compared in the market.

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Does Insuranceline provide value for money?

Insuranceline is a direct insurance policy provider and part of TAL life. They specialise in life insurance, income protection, funeral insurance and most recently pet insurance. They offer a 30-day money back guarantee and require no medical tests. If you’re an Australian resident, you can apply for Insuranceline cover online or over the phone.

Even though the company provides fair value in that you can choose from a range of flexible payment options, with discounts available for larger cover amounts, their worth does not hold up to.

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For example, a 45-year-old Male seeking $1,000,000 life cover will pay $170.88 for an Insuranceline Life Insurance Plan, compared to $89.81 for the average Advised (Retail) policy. That’s nearly double!

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Every person’s financial and family situation is unique. Therefore we advise you shop around and find your perfect fit. Our comprehensive quote index provides you with an easy-to-use starting point of discovery.

With life insurance starting from only $2.95 a week, any Australian aged 18 to 65 can apply. They encourage you to choose the amount of cover that’s right for you and your family and also offers a discount when you and your partner take out cover together.

Backed by TAL, which pays out over $2 million in claims every working day, this direct insurer almost sounds too good to be true. They even promise to make your life easier during tough times by providing benefits that include:

  • Apply over the phone in minutes.
  • No medical tests.
  • No forms to fill in.
  • Tax-free payout from $100,000 up to $1 million.

However, what they’re not making clear is that when little to no underwriting is done during application stage, you’ll likely have extensive exclusion built into your policy.

Life cover reviews

Their direct life policies pay out a lump sum in the event of your death or diagnosis of a terminal illness, with a life expectancy of fewer than 12 months. This excludes suicide or intentional self-injury during the first 13 months of your policy being active.

The company offers two life cover options. Let’s compare.

Life CoverBasic Life Cover
Covers death, terminal illness and life events.Covers death and terminal illness.
Provides cover for up to $1.5 millionProvides cover for up to $250,000.
Detailed information about your medical history is required during the application stage.No medical history is required.
Excludes cover for suicide or intentional self-harm during the first 13 months of your policy.There are many exclusions, including:
  • Death or terminal illness that results from a pre-existing medical condition.
  • Suicide or intentional self-harm during the first 5 years of your policy.
  • Known genetic conditions.
  • Dangerous occupations and pastimes.
Generally cheaper than the Basic life cover option.Generally more expensive due to the lack of underwriting at application stage.

Optional extras

You can add one or more optional illness or injury cover to your chosen life insurance policy as long as it is the lesser of $250,000 or 95% of your life insurance benefit amount, this includes cover for:

  • Major illnesses, like a stroke and heart attack.
  • Cancer
  • Serious injuries due to an accident.

* We advise you thoroughly read the insurer’s product disclosure statement (PDS).

However, we’d like to provide you with a quick breakdown of what the life policy covers and doesn’t cover.

Insuranceline life provides cover for:

  • Cancer if one or more malignant tumours are present.
  • Coronary Artery Bypass Surgery.
  • Heart Attack and Stroke.
  • Paralysis – totally and permanently disabled.
  • Permanent incapacity, meaning you are not able to perform at least two of your daily living activities, e.g. getting dressed, and feeding or washing yourself.
  • Major organ transplant or failure, including your heart, kidneys and bone marrow, lung, liver, pancreas or small bowel.
  • Major physical impairment – total and permanent loss of at least two or more limbs due to an accident.
  • Burns on at least 20% of your body surface that must be as a result of an accidental injury.

Be aware that it does not cover you for most of the above circumstances if it took place within the first 90 days of your life cover commencing, being increased or reinstated.

Compared to the average Retailers’ Trauma insurance policies, covering you for 40 to 60 conditions, Insuranceline life insurance seems to fall flat.

Insuranceline was the first insurance company to do funeral insurance in Australia, and they’re pretty good at it. They are one of the largest providers of funeral cover in Australia, protecting over 400,000 Australians with their protection products.

You’ll receive funeral cover for up to $15,000 and can choose to pay your premiums fortnightly, monthly or annually.

Insuranceline funeral plan generally pays claims within 24 hours of receiving a completed claim. However, only accidental death is covered during the first 12 months of taking out your policy or increasing cover.

Premium options:

Level

This payment option puts a limit on the amount of premiums you need to pay, capped at twice the value of your insured amount. Available to all Australian residents aged between 21 and 80.

Level advantage

For this option, you pay a little more from the start, but premiums are capped at the value of your insured amount. Available to all Australian residents aged between 21 and 70.

However, the capped benefit falls away if you make any changes to your policy, including:

  • Adding or removing extra benefits to your policy.
  • Adding or removing people.
  • Increasing or decreasing your cover amount.

You can increase your level of protection by adding optional extras:

  • Extra accidental death cover: Provides your beneficiaries with a double payout if your death was due to an accident OR you can take out up to $50,000 extra accidental death cover, which will pay out if your death occurs within six months of the accident.
  • Extra accidental injury cover: You’ll receive up to $50,000 depending on the type of injury sustained during your accident.

Insuranceline funeral insurance does not cover:

  • Natural causes of death within the first 12 months of taking out your funeral policy.
  • Attempted or actual suicide or intentional self-injury.
  • Participating in unlawful or criminal activities, including war and/terrorism.
  • Dangerous occupations, for example, an explosive worker or test pilot.
  • Taking part in dangerous pastimes, like speed racing and skydiving.
  • Accidental injuries, unless the optional extra accidental injury cover is added.

Provides a monthly benefit of up to 85% of your salary if you are unable to work for more than a month, due to illness or injury. Essentially acting as a source of income when you don’t have one.

You can further choose flexible payment options that suit your salary cycle. Choose to pay your premiums fortnightly, monthly, quarterly or annually.

To qualify for their income protection, you’ll need to be employed for at least 20 hours a week or have been self-employed for at least six months.

Remember to have your proof of income ready when applying for any type of income cover.

The company provides you with the choice between their Rate Saver and Time Saver Income Protection plan.

Rate SaverTime Saver
This option is for those looking for more affordable premiums at a better value.This option is suited to people who are very busy and don’t have time to fill in a lot of forms.
Requires that you answer health and lifestyle questions at the application stage.Health and lifestyle information is only gathered at claim stage. Thus increasing the chances of your claim being denied.
Higher cover and lower premiums.Excludes cover for any pre-existing medical conditions or symptoms that you had during the five years preceding your start date.
Income protection for up to 85% of your salary. Capped at $10,000 per month.Income protection for up to 85% of your salary and capped at $7,500.
You choose your waiting period: 14, 28, 60 or 90 days. Your decision will affect your premiums.Waiting period set at 28 days.
Payout period of 6,12 and 24 months with an added option of a 5 year payout period.Payout period of 6, 12 and 24 months.
Receive up to 85% of your income, up to $3,000 per month, for Involuntary Unemployment.Receive up to 85% of your income, up to $3,000 per month, for Involuntary Unemployment.

Optional extras include:

  • Optional Homemaker cover: Protection for stay at home parents. By adding the stay at home spouse to your income protection policy, you’ll receive a 5% premium discount for both of you. Insuranceline will pay up to $3,000 per month should the stay at home spouse be unable to perform their household duties due to sickness or injury.
  • Optional Permanent Disability Cover: You can choose between $50,000 to $500,000 cover if you are permanently unable to perform at least two of the following daily activities; bathing, dressing, going to the toilet, getting in and out of bed/chair and feeding yourself.
  • Optional Holiday Injury Benefit: This optional extra is specifically designed for people worried about being injured when away from home. You’ll receive a once-off payment of up to $3,000 if you are injured during state school or public holidays or injured when more than 200km away from home.
  • Optional Kids Injury Cover: Payouts in the event of certain childhood injuries, like a fractured skull or spine, bed confinement, 2nd degree burns to 10% of the child’s body surface and loss of a limb(s) or in the case of deafness, blindness or paralysis.

Insuranceline Income Protection does not cover:

  • Cancer, stroke or heart attack during the first six months after your policy commencing.
  • Mental illnesses or disorders: Anxiety disorders (including OCD), adjustment disorders, depressions and stress, behavioural and eating disorders, psychosomatic disorders and any treatment complications.
  • Drug and/or alcohol-related illnesses or injuries.
  • Fatigue disorders, including chronic fatigue syndrome.
  • Intentional self-inflicted injuries, including exposing yourself to risk of sickness or injury for any reason.
  • An act of war and any sickness or injury as a result of criminal activity.
  • Pregnancy.

Insuranceline Australia claims they’ve opted to exclude the above to keep your premiums as low as possible. Which is all well and good, but does not serve you when it’s time to claim.

Overall they are a successful funeral cover provider, but they sorely lack in their life and income protection products, which is evident in the amount of exclusions peppered throughout their product disclosure documents.

Before making your decision, let us help you compare our list of the 10+ major life insurance companies retail policies on offer, and we also provide a Lowest Price Guarantee*.

Frequently Asked Questions and Answers

Insuranceline is owned by TAL Direct Pty Limited, Australia’s life insurance specialist, looking after more than 3.7 million residents and having paid out over $1billion in claims in 2015 alone. TAL bought Insuranceline from 2 South African’s, who started the company.

You can use the Insuranceline phone number, 1300 880 750, between 8 am and 8 pm EST Mondays to Fridays. Alternatively, send them an email, [email protected], or fax on 1800 730 099. If you have any further questions simply send your query to [email protected] Lastly, feel free to visit their website: www.insuranceline.com.au

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