Life insurance
Life insurance may pay a lump sum if the insured person dies or is terminally ill, depending on the policy terms. People often look at it when others rely on their income, unpaid work or ability to keep a household running. The amount, ownership and beneficiary arrangements need proper consideration.
The kitchen-table version
Work out what would change
People usually begin with the commitments that would not disappear: debts, household costs and plans for the people who rely on them. It is a way of framing the question, not a number we hand out online. Existing savings, super and other support can be part of that conversation too.
Check what is already there
Some people have life cover through super. It may provide some cover, but the amount, terms and whether it will continue can vary. Read your current statement and fund insurance guide rather than assuming the default amount still fits your life.
Read who is covered and how
The PDS, policy ownership and beneficiary arrangements matter. A licensed adviser can explain the options available through the advice process without treating a web page as a personal recommendation. Ask how proceeds are dealt with before anyone needs to make a claim.
Claims data is useful, but it is not a promise
APRA's current figures report 97 in 100 death-cover claims made through an adviser were admitted last year. An individual claim still turns on the policy, disclosure, evidence and circumstances.1
1 APRA Life Insurance Claims and Disputes Statistics, 12 months to 31 December 2025, published 29 April 2026. Past industry outcomes do not guarantee an individual claim outcome.What to check in your super
Some super funds increased insurance costs in 2026, so check what your own fund now provides. Life cover in super may provide some protection, but default amounts, fund rules and nomination arrangements may not match your current mortgage, household or plans. Start with your statement.
| What to check | Through super | Outside super |
|---|---|---|
| Cover amount and terms | May be set by fund rules or selected options. | May be selected through an advice process, subject to underwriting and product availability. |
| Who receives proceeds | Fund and nomination rules can matter. | Ownership and beneficiary arrangements can matter. |
| Next step | Read the fund insurance guide and statement. | Read the current policy documents and PDS. |
What can make it cheaper or dearer?
- Age and health information
- Smoking status
- The amount and type of cover
- Occupation and lifestyle factors where relevant
- How the cover is owned and structured
A few everyday starting points
If people rely on your income
Parents, couples and mortgage holders often start here. Ask, “What would change for the people around me?” Consider debts, regular costs, unpaid work and the money already available to the household.
If you are single
Life insurance is not automatically a must-have because you are an adult with a job. Debts, dependants, family responsibilities and existing assets can all change what is worth discussing. Other cover types may raise different questions if you are more concerned about illness or injury than a death benefit.
If your life has moved on
Marriage, kids, a new mortgage or a new business are all good reasons to review existing cover. The old answer may no longer fit your current life. Changing cover is not automatic. Start by checking the current terms and ownership.
Cover in super or your own policy: what is the real question?
Start with what you have, who it is intended to help, how the definitions work and whether the arrangement still makes sense for your circumstances. Those details can change when your job, family, debt or fund changes.
| Question | Why it matters | Where to look |
|---|---|---|
| What is the current amount? | It may not match your current commitments. | Your super statement or policy schedule. |
| Who is it intended to help? | Ownership and nomination rules can affect how proceeds are dealt with. | Fund documents, PDS and personal legal advice where needed. |
| What definition and terms apply? | The trigger, exclusions and policy conditions can differ between arrangements. | The fund insurance guide, policy schedule and PDS. |
What this cover doesn't do
Life insurance is not an automatic savings plan or a substitute for sorting out every household financial decision. Default cover in super can be modest against a mortgage and ongoing living costs, and it can change under fund rules. Policy ownership and nominations can affect how a payment is dealt with. Tax treatment can also vary. The cover only responds if the policy terms and claim requirements are met. Ask about those details early, then read the relevant PDS before you decide.
The details that are worth talking through
Do life insurers really pay claims?
APRA publishes industry claims statistics, and its latest data shows high admission rates for individual advised death-cover claims. No statistic guarantees an individual result. A claim may be admitted when the policy definition and claim requirements are met, including the relevant disclosure and evidence. The APRA numbers describe an industry outcome over a defined period, not an insurer promise.
How do people work out an amount?
There is no magic number that suits every household. People often map debts, ongoing household costs, dependants and existing resources, then discuss the gaps in a personal-advice process. A website cannot decide the amount for you because the right considerations depend on your own objectives, finances and needs. It can also help to check cover already held through super or work before assuming there is no protection.
Who receives the money?
That can depend on policy ownership, nominations, fund rules and the policy terms. A life policy held through super may follow different fund and nomination rules from a policy held outside super. Ask about this early rather than assuming the money will automatically go where you expect. A valid nomination may be important, but the applicable rules should be checked rather than assumed.
Will I need a medical examination?
Often, an application starts with health questions rather than an examination. Whether further checks are needed can depend on the insurer, the cover amount, your age, health, occupation and circumstances. The application process and policy terms are where you can see what information is required. Answer questions fully and accurately so the insurer can assess the application under its process.
Do I need life insurance if I am single with no kids?
Maybe not. If nobody depends on you financially and you do not have debts or responsibilities others would need to carry, life cover may be less relevant. It can still be worth considering the broader picture, including debts, family commitments and whether income protection or TPD raises a separate question.
What is the difference between life cover in super and my own policy?
Cover in super is generally paid from your super balance and follows fund rules, while cover outside super has its own policy ownership and payment arrangements. Compare the amount, definitions, cost, who receives proceeds and the terms you actually hold. Read both documents before changing anything, because terms and definitions can vary.
Talk through life insurance in plain English.
Book a call with Justin, explain where you are at and get a clearer view of what may be worth checking. If there is nothing to do, you will know you can leave it alone.
Book a no-obligation callPrefer to talk now? Call 0468 015 869
What the call covers
- What you are trying to sort out
- What cover you may already have
- Which questions are worth a closer look
- What happens next, only if you want it to
General advice only. No obligation to proceed.