How to Protect Your Family with Life Insurance

Make sure your family is financially protected should something happen to you. Insurance companies have some great offers available to ensure your entire family, including your partner and children, are covered. We can help prepare affordable family insurance quotes for you and your partner or children.

Published November 23, 2023

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What is life insurance for the family?

Select life insurance companies offer discounts for couples who both take out coverage from the same provider. The discount varies depending on your choice of insurance company and cover type. However, generally, you can expect a discount of up to 10%. Furthermore, you might also be able to add your children to your policy for an extra fee or free of charge, depending on your insurer.

When reviewing your family insurance comparison, make sure to ask your consultant what the available discounts are.

Who should take out family insurance?

If you’re married, have children or planning to buy a home or start your family, you may want to consider taking out cover that protects your all your loved ones. Even if your partner or spouse doesn’t work, taking out cover for them to protect your family financially may make all the difference.

What types of family cover are available?

Couples life insurance

Both you and your partner can generally take out any life insurance policy in any combination. For example, you might decide to take out Life Insurance and Income Protection for yourself but only Life Insurance for your partner.

While joint life insurance policies are not available, most insurers do offer discounts when both partners take out cover.

Child Cover

While some insurers offer free child cover of up to $10,000, most companies generally provide a standalone child policy. For Children, most family life insurance policies cover them for:

Benefits of life insurance for the family

Protecting the breadwinner

Taking out life cover for the working spouse generally allows your family to continue their lifestyle and not be forced to move and lose their established support network. Should the working partner pass away or be diagnosed with a terminal illness, the life insurance lump sum benefit could help:

Coverage for the homemaker

You might be wondering why you should insure your wife or husband if they do not work. However, life insurance for parents may be one of the most important decisions you can make in protecting your family. Often, the non-working spouse takes care of the children and/or running the home. If you were working full time, who would take care of the cooking, cleaning, laundry, and taking the children to and from school and other activities?

By making sure your non-working spouse/partner is insured, the money from their policy can help you employ some much-needed help. For example, a nanny, a cook or cleaner to help care for the children and home while you are working.

Free Built-in Child cover

Many of the insurers we compare offer free child cover of up to $10,000 for each child when you take out a policy. This generally covers you financially should your child pass away or suffer from a terminal or critical illness.

This type of cover is generally available for children aged between 2 and 16 years old, depending on your life insurance company.

Additional Child Cover Options

Select insurers may also offer increased Child Cover as an additional option. Generally, you will be able to increase your level of child cover up to $200,000, which usually includes cover for death, terminal illness and critical illness.

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

How do I add child cover to my policy?

While some insurers will offer free child cover of up to $10,000, other insurers may only provide child cover as an optional benefit you can add to your policy. This will generally require you to provide the child’s medical history.

Additional benefits available within child cover:

When child cover sits as a stand-alone policy it often comes with many options and benefits:

Who offers the best family life insurance plans?

Each insurer will offer different benefits for you and your family. Some will offer multi-policy discounts, some will provide free child cover. One of the most important things you can do is compare premiums, and policies for your family across a number of providers so you can see which policy might suit your specific requirements.

Can I get life insurance if I am currently pregnant?

For a lump sum cover, select providers will allow you to apply for cover up until the date of your child’s birth.

However, this differs from company to company, with some providers only allowing applications up until the end of your second trimester if:

You may need to wait 6 weeks after the birth of your child before you can apply for coverage if you:

This allows time for any complications to be resolved and for you to make a complete recovery from giving birth.

Income Protection Insurance

If you have had no previous complications or are currently not experiencing any complications, select providers will allow you to apply for income protection cover right up until the end of the second trimester.

However, as income protection protects your personal exertion income, you will need to confirm your return to work intentions including:

If you have no plans to return to work, you will generally not be eligible to apply for income protection as it only protects against your personal exertion income, which you won’t be earning if you’re not working.

You should always consult with an insurance specialist before making any decision.

Frequently asked questions and answers

  • Why is family life insurance important?

    You may want to consider applying for a family life insurance policy if you have financial dependents. This type of cover generally provides your loved ones and financial dependents with money that they can use to cover their costs if something were to happen to you. The benefits from this kind of policy can generally be used to pay for mortgages or to cover their cost of living.
  • How does family life insurance work?

    Typically, a family life insurance policy acts as a single policy which provides cover for both you and your partner. You may have the option to apply for various policies which suit your personal requirements. For instance, you may only want to apply for life cover while your partner applies for both life cover and income protection. Generally, insurers will provide you with a discount for applying for more than one policy.
  • Who can be covered under a family life insurance policy?

    Generally, this depends on your specific insurer. However, most insurance companies offer you the option to take out cover on yourself, your partner as well as children aged between 2 and 17. However, you’ll need to confirm this with your insurer or you could check your Product Disclosure Statement for more information.

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