// Life Insurance Australia
Life insurance
without the jargon
Life cover, TPD, trauma insurance and income protection — the four pillars of personal insurance in Australia explained clearly. What you need, how much, and who to trust.
Term Life Insurance
Pays a tax-free lump sum to your nominated beneficiaries if you die or are diagnosed with a terminal illness. Essential for anyone with dependants or a mortgage.
💵How much cover do I need?
The rule of thumb is 10–12 times your annual income. Your actual needs depend on: outstanding mortgage and debts, number of dependants and how long they rely on you, your partner's income, existing super balance and assets, and any existing super cover.
🏦Inside vs Outside Super
Inside super: premiums from super balance, no out-of-pocket cost, but usually any-occupation TPD only. Outside super: broader features, pay to any beneficiary, own-occupation TPD available. Many advisers recommend combining both.
🏢Key Providers
AIA Australia (Vitality program), TAL (Accelerated Protection), MLC Life Insurance, Zurich Australia (Wealth Protection), NobleOak (competitive direct premiums), Clearview (flexible policies).
TPD — Total & Permanent Disability
Pays a lump sum if you become permanently disabled and can no longer work. The policy definition of "disabled" makes a huge difference to when it pays.
Own Occupation
Pays if you can no longer perform your specific occupation. Only available outside superannuation. More expensive but significantly broader protection. A surgeon who loses hand function would likely receive a payout even if they could do other work.
Any Occupation
Pays only if you can no longer perform any occupation suited to your education and experience. Much higher bar to clear. Default definition for TPD inside superannuation. Lower cost but narrower coverage.
Trauma / Critical Illness Cover
Lump sum payment on diagnosis of specified serious conditions. Pays regardless of whether you can work. Not available inside superannuation.
🩺What is covered?
Typically 40+ conditions including cancer (50–60% of all claims), heart attack, stroke, coronary artery bypass, kidney failure, organ transplants, blindness and deafness. Policy definitions vary — the wording matters.
💡Why it matters
Health insurance covers hospital bills. Trauma cover fills the gaps — mortgage repayments while you recover, home modifications, family support, experimental treatments not covered by Medicare, and debt repayment.
⚠️Key things to know
Not available inside superannuation. Survival periods apply — most policies require 14–30 days survival after diagnosis. Policy definitions for conditions vary between insurers.
Income Protection Insurance
Pays up to 70% of your pre-disability income if illness or injury stops you from working. The most commonly claimed personal insurance — and premiums outside super are generally tax-deductible.
⏱️Waiting Periods
How long you must be disabled before payments start. Options: 14, 30, 60 or 90 days. Longer waiting period = lower premiums. If you have savings to cover 30–60 days, a longer waiting period saves significant premium cost.
📅Benefit Periods
How long the policy pays. Options: 2 years, 5 years, or to age 65. A 2-year benefit period leaves you exposed to long-term disability. To age 65 is the most comprehensive option for working-age Australians.
🧾Tax Deductibility
Income protection premiums held outside super are generally tax-deductible. This makes it one of the few insurance types with a direct tax benefit — effectively subsidised by your marginal tax rate.
Work out how much cover you need
Archie will walk you through your income, debts, dependants and existing super cover to help you understand what level of protection makes sense.
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⚠️ General information only. Life insurance, TPD, trauma and income protection products vary significantly. Always read the PDS and consult a licensed insurance broker before purchasing.