01
.Introduction
It’s probably not something you like to think about, but if you became seriously ill and were unable to work, would you have enough savings or insurance to deal with the financial consequences? If you died, would your family or other dependents cope financially?
Term life insurance – also known as “death cover” – can pay off your mortgage, debts and other costs (such as funeral) and, more importantly, provide dependants with a lump sum. It can also ensure important goals are met, such as providing your children with a private school or tertiary education.
Rice Warner, an independent firm of actuarial and management consultants, co-operated with CHOICE on this report by giving us access to their comprehensive database of premiums and features for retail and superannuation term life insurance policies. Also read our advice on income protection insurance.
Policies reviewed
Termlife insurance
- AIA Australia
- AMP
- Asgard
- Asteron/Suncorp
- Aviva
- AXA
- CommInsure
- ING
- Macquarie
- MLC Life cover Plus
- MLC Life Cover Standard
- St George
- TOWER Accelerater Protection Life Insurance
- TOWER Life Protection Plan (TPP)
- Westpac
- Zurich
Industry superfunds
- AustralianSuper
- CARE
- Cbus
- First State Super Employer
- Health Super
- HESTA Industry
- HOSTPLUS Employer Sponsored
- MTAA
- REST
- Sunsuper Solutions
What you get in this report
- Costs and features of 20 term life insurance policies available through a financial planner and 10 industry super fund policies.
- Average annual premiums for $750,000 of cover for a 50-year-old male range from about $840 for a policy through your super fund or about $1420 for a fully comprehensive policy through a financial planner, up to about $2350 for an online policy.
- According to a 2005 survey by the Investment and Financial Services Association (IFSA), only one in five families or single parents with at least one dependent child have adequate life insurance cover.
See our Insurance section for more articles. Looking to protect your personal cashflow? Visit our income protection insurance article for details on how secure your income.