Conducting a life insurance comparison can sometimes be a difficult exercise. At Life Insurance Direct we try to make the process simple, easy, quick and as informative as possible. Our comparison software and expert staff will help guide you through the process so that you can find a policy that suits your budget.
Compare Life Insurance Quotes
- Advanced Funeral Payments
- Level vs Stepped Premiums
- Cover for Terminal Illness
- Inflation Protection Options
The essentials, what you need to know:
What is included in the price?
Premiums of polices are made up of 3 elements:
- The base premium
- The policy Fee
- Any applicable stamp duty*
*Generally stamp duty is not applied for life insurance policies and may only be applied for other types of cover such as Income Protection.
When comparing quotes you need to understand there are a number of factors that effect the cost of your cover:
Your premiums will also be influenced by the following factors:
- Your age: Life insurance companies use a mortality or actuarial life table to assess your probability of death, as different ages present different life expectancies to the life insurance company.
- Health status: Make sure you disclose your previous medical conditions at the time of your policy application get as accurate as possible.
- Smoking status: Your smoking status will generally be taken into account when your premiums are calculated, as smokers may present a greater risk to the insurer. However, you may not be considered a smoker if you have had no cigarettes or nicotine products in the last 12 months.
- Occupation: Generally, your occupation will not affect your life insurance premiums.
- Past times: Generally, past times you participate in will be covered. However for past times such as extreme sports (sky diving, bungee) which may be excluded from your policy, are reviewable annually and any exclusion from your policy can potentially be removed if you no longer participate in that activity.
- Your gender: Your gender could affect the amount of your premiums as males and females may have different life expectancies.
Historically there have been two types of premium options available from insurers, however recently a third option has become available:
Start off cheaper than level premiums but increase with your age each year.
Start off more expensive than stepped premiums but do not increase with your age.
Starts off on a stepped pattern but converts to a level pattern once the stepped premiums is more than the level premium amount. Level premiums will remain in place until conversion age of 65 or 70, when they will convert to a stepped premium pattern. The conversion age will generally differ between insurers.
The type of cover you choose will effect your coverage and premiums, the options available include:
Generally, a life insurance policy will come with a certain number of built in benefits that come as standard with your policy. However not every life insurance policy comes with built in benefits.
These may differ between insurers but some of the more common built in benefits are:
Pays a lump sum benefit to help cover the cost of a funeral.
Pays a lump sum benefit upon diagnosis of a terminal illness
Allows you to increase your level of cover without having to provide additional medical evidence.
Waives your premiums if you become tally disabled for a certain period of time.
Provides interim accident cover while a life insurance company assesses your claim.
Allows you to freeze your premiums at the previous year’s amount so they do not increase with your age.
Provides a benefit to cover daily accommodation expenses if you are confined to a bed more than 100km from home and require a family member to be with you.
Reimburses the costs of seeking financial planning advice upon payment of a life insurance lump sum benefit.
Gives you the option to increase your cover amount each year by either the CPI or a pre-determined percentage.
Allows you to temporarily suspend your cover, generally for up to 12 months if you are suffering from financial hardship, are unemployed or are on long term leave.
Additional cost options:
Life Insurance companies will generally offer a number of additional policy cost options, designed to enhance and tailor your policy to suit your needs.
While these will generally differ between insurers, some of the more common additional cost options include:
Provides a benefit if you die as a result of an accidental death
Allows you to apply to increase your business expenses cover if a business event occurs, without having to supply additional medical information.
Provides cover for medical professionals if they suffer a Needlestick injury during the course of their normal duties.
When considering you cover requirements, it is worth understanding if any of these options provide you with value as they are not always appropriate.
If you would like to compare life insurance quotes from a the major life insurance companies, or if you would like to compare your existing cover please complete the above request for a quote or contact us on 1300 135 205.