// Personal Insurance Australia
Protect what
matters most
Life insurance, TPD, trauma cover and income protection — explained in plain English. Find out what Australians actually need and how much cover is enough.
The underinsurance gap in Australia
1 in 2
Australian families are underinsured for life cover
$8.4B
Life insurance claims paid in Australia FY23
70%
Max income replacement from income protection
10–12×
Annual income — typical life cover rule of thumb
The four pillars of personal insurance
Most Australians need some combination of these four cover types, depending on their life stage, income, debts and dependants.
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Life Insurance
Pays a tax-free lump sum to your nominated beneficiaries if you die or are diagnosed with a terminal illness (generally 12–24 months to live). Essential if anyone depends on your income.
Available inside or outside superannuation
Death & terminal illness benefit
Sum insured: typically 10–12× annual income
Key providers: AIA, TAL, MLC, Zurich, NobleOak
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TPD Insurance
Total & Permanent Disability insurance pays a lump sum if you become permanently disabled and can no longer work. The definition of disability matters enormously.
Own occupation vs Any occupation definition
Inside super: usually "any occupation" only
Outside super: own occupation available
Often bundled with life insurance
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Trauma / Critical Illness
Pays a lump sum on diagnosis of specified serious conditions — cancer, heart attack, stroke and 40+ others. Covers costs health insurance and Medicare don't: lost income, home modifications, debt repayment.
Not available inside superannuation
40+ covered conditions (varies by insurer)
Pays regardless of ability to work
Cancer is the most commonly claimed condition
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Income Protection
Replaces up to 70% of your pre-disability income if illness or injury stops you from working. The most tax-effective personal insurance — premiums outside super are generally tax-deductible.
Up to 70% income replacement (post-2021 APRA rules)
Waiting periods: 14, 30, 60 or 90 days
Benefit periods: 2yr, 5yr or to age 65
Premiums generally tax-deductible outside super
Not sure what cover you need?
Archie will ask you a few questions about your life stage, income, debts and dependants — then explain which cover types actually apply to your situation.
Start Free Assessment →
Inside super vs outside super
Most Australians have some default life and TPD insurance inside their superannuation fund. Here's what you need to know about the difference.
Inside Super
✓ Premiums paid from super balance — no out-of-pocket cost
✓ Can be tax-effective for high-income earners
✗ TPD usually "any occupation" definition only
✗ Payout restricted to SIS Act conditions of release
✗ Default cover may be insufficient
✗ Trauma cover not available inside super
Outside Super (Retail / Direct)
✓ Own occupation TPD available
✓ Pay directly to nominated beneficiary
✓ Broader policy features and definitions
✓ Income protection premiums tax-deductible
✗ Out-of-pocket premium cost
✗ Requires underwriting — health history matters
⚠️ General information only. This page provides educational content about personal insurance in Australia. It does not constitute personal financial advice and does not take into account your individual circumstances, financial situation or needs. Always read the Product Disclosure Statement (PDS) and consult a licensed insurance broker or financial adviser before purchasing any insurance product. Archie is not an AFS Licence holder.