Term Life Insurance

This is the most common and affordable type of life insurance in Australia. It provides a lump sum payment if you pass away or are diagnosed with a terminal illness during the policy term.

Features:

• Flexible term lengths
• Cheaper than permanent cover
• Can be stepped (rises over time) or level (stays fixed)

Whole Life Insurance

Less common in Australia. This type of cover lasts for your entire life and builds a cash value component. Some legacy products may still exist, but most Australian providers offer term policies.

Other Types of Cover

• TPD Insurance: Pays a lump sum if you become totally and permanently disabled
• Trauma Insurance: Covers specific serious conditions
• Income Protection: Replaces part of your income if you’re too sick or injured to work

FAQs

What happens when the term ends?

You can usually renew or reapply. Premiums may increase as you age or if your health has changed.

Is term life the right choice?

It’s the most popular for a reason — it’s affordable and flexible. But depending on your goals, you may want to combine it with other types of cover.

Can I cancel it at any time?

Yes, you can cancel with no penalties, but you’ll lose the protection.

Final Thought

Term life is a strong choice for most Australians. It’s cost-effective and customisable, and you can build on it with extra cover if needed.

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