Women more underinsured than men

Women are generally more underinsured than men and are less likely to hold life insurance according to new research from life insurer TAL.

This is despite women having more employment and education opportunities than any time in history.

TAL found that 47% of women hold some type of life insurance – which includes life insurance, income protection, critical illness, and total and permanent disability insurance – compared with 57% of men.

Our own numbers show that over 60% of enquiries made on Life Insurance Direct Australia were male. These numbers highlight why in Australia underinsurance is a multi-billion dollar problem.

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Insuring the non-working spouse

While more women are working than ever before, this is not the only reason to take out cover for your wife or partner.

The non-working spouse (male or female) plays a vital role in the household, often performing the role of chef, cleaner, chauffer and nanny – all roles which could cost you thousands of dollars if you were forced to pay for them.

Making sure you and your family are financially protected if your partner is no longer around is important in maintaining your family’s life style.

How insurers are helping women take out cover

Insurers have a number of initiatives to help make cover more affordable for families and the individual:

number-1Multi-life discounts

Did you know most of the insurers we compare offer multi-life discounts if you and your partner both take out cover?

Depending on the level and type of cover applied for, discounts can be up to 10% of your premiums – potentially saving you thousands of dollars.

Discount Available
1. Onepath - 15%4. Zurich - 15%
2. TAL - 15%5. BT - 15%
3. Clearview - 15%6. Macquarie - 15%

number-2Combined Cover:

By taking out a combined policy – that is a policy which combines life and/or trauma and/or TPD into the one policy, you can potentially save hundreds of dollars off your premium, making cover more affordable.

Cover TypeLevel of CoverStand Alone Premium (monthly)Combined Premium (monthly)
Life and Trauma InsuranceLife: $1 million Trauma: $250,000$119.05$96.79
Life and TPD InsuranceLife: $1 million TPD: $500,000$83.26$77.77
Life, Trauma and TPD InsuranceLife: $1 million Trauma: $250,000 TPD: $500,000$143.99$112.24

Premiums based on 40 year old male accountant with Stepped premiums

number-3Cover through your super fund

Taking out cover through your super fund may make insurance more affordable. You can elect to take out both of your policies through your super fund or just one – it’s up to you.

Also, most insurers offer premium discounts if you elect to find your insurance premiums through superannuation rollovers.

number-4Accident Only Cover or Funeral Cover

Select insurers offer Accidental Death Cover – which provides a lump sum payment for death that results from an accident – and Funeral Cover, which provides a smaller lump sum payment to help pay for a funeral.

Some insures also offer an Accident Only policy for income protection, which covers you if you are unable to work as a result of an accident. It does not provide cover if you are unable to work due to an illness.

Taking out one of these policies may provide you with some cover at a more affordable price.

Please be advised that this is a general guide only and we are not registered tax agents under the Tax Agent Services Act 2009; and if you intend to rely on the advice to satisfy liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law, you should request advice from a registered tax agent. Please consult your tax accountant or speak to one of our financial advisers for further information.

Author: Russell Cain
Published: March 3, 2015

Ask an Expert?


  • Valerie |

    Good day… I am just want to know more how to get life insurance through super. My husband already have a coverage from his super as I am not yet working he is the sole insured there.
    1. Is it allowed to apply a couples insurance thru Super?
    2. Are there any options as well like the add ons like TPD with Super?

    Thanks in advance.

      Anneke |

      Hi Valerie, thank you for your question.

      There are a few options of how you can take out life insurance through your superannuation, including Self Managed Super Funds and Flexible Linking Options. However, whether a super fund allows this and the types of insurance they provide varies from one fund to another. Because I don’t know which fund your husband is with I cant inform you of their specifications.

      Please give us a call on 1300 135 205 and an insurance specialist will assist you.

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