Life insurance for home loans and mortgages
If you have a mortgage, life insurance can help give you and your family financial peace of mind. Learn about...
Comparing life insurance with term life insurance
Here’s a guide to some of the differences between Real Life Insurance and Real Term Life Insurance:
| Real Life Insurance | Real Term Life Insurance | |
| Term of cover | No expiry (depending on your circumstances) |
Expires after 20 years or when you turn 85 (whichever comes first) |
| Benefit amount | $100,000 - $2 million (depending on your circumstances) |
$10,000 - $100,000 |
| Eligible age to apply | 18 – 74 | 18 – 79 |
| 100% benefit paid out in advance if you’re diagnosed with a terminal illness | Yes With less than 24 months to live |
Yes With less than 12 months to live and after holding your policy for 12 months |
| Cover for death | Yes Except as a result of self-inflicted injury in the first 13 months |
Yes Cover for accidental death only in the first 12 months |
| Triple benefit amount if death is accidental | No | Yes |
| Advanced funeral benefit while your claim is being assessed, subject to approval | Yes 20% of your life insurance benefit amount up to $20,000 |
Yes 20% of your life insurance benefit amount |
| Optional cover for Serious Illness | Yes | No |
| No medical or blood test needed to apply | Yes | Yes |
Get up to $2 million cover, depending on your circumstances, with Real Life Insurance
Cost comparison: Term life insurance vs full life insurance
The cost of life insurance depends on a range of factors, including:
- age
- health
- lifestyle
- amount of cover
- type of policy
Because term life insurance and full life insurance are designed to provide different types of cover, premiums can also differ. The easiest way to understand how much cover may cost is to request a personalised quote based on your individual circumstances.
Things to keep in mind about full life insurance
Full life insurance is designed to provide lifelong cover, as long as the policy is up to date. Comparing the potential benefits and key considerations can help you decide which type of cover best aligns with your needs.
Benefits of full life insurance
Full life insurance is designed to provide cover for life, provided the policy remains in force. With Real Life Insurance, potential benefits may include:
- Lifelong cover and ongoing financial protection for your beneficiaries
- The option to add Serious Illness Insurance and Children's Insurance to eligible policies
- A lump sum payment if you're diagnosed with a terminal illness
- The flexibility to choose a level of cover that reflects your circumstances and financial commitments
- Australian-based claims support to guide you through the claims process
Key considerations of full life insurance
When comparing full life insurance, it's also worth considering:
- Premiums and policy features may differ from term life insurance
- The level of cover you need may change over time
Ready to protect your most precious asset?
Things to keep in mind about term life insurance
Term life insurance provides cover for a set period of time and may suit different needs depending on your circumstances. Understanding both the potential benefits and the key considerations can help you compare your options with confidence.
Benefits of term life insurance
Term life insurance may be suitable if you're looking for cover during a specific stage of life. With Real Term Life Insurance, potential benefits include:
- Cover for a defined period of time
- A range of cover options to suit different financial needs
- The flexibility to choose a level of cover that reflects your circumstances
- A final expenses benefit equal to 20% of your life insurance benefit at no additional cost once your cover period ends
- The option to keep your final expenses benefit for a further 10 years or cash out half of the benefit during that period for added flexibility
Key considerations of term life insurance
When comparing term life insurance, it's also worth considering:
- Cover is provided for limited time rather than for life
- Your insurance needs may change over time, so it's important to review your cover periodically
- Policy features, eligibility requirements and optional benefits can vary between insurers
See how easy it is to apply for cover
How to choose a life insurance policy for you
The type of life insurance that's right for you depends on your personal circumstances, financial commitments and the type of cover you're looking for. Understanding the differences between term life insurance and full life insurance can help you compare your options and choose cover that aligns with your needs.
When term life insurance may be suitable
Term life insurance may be worth considering if you're looking for cover during a specific stage of life, such as while you're raising a family or paying off a mortgage. It may also suit people who want cover for a defined period rather than for life.
When full life insurance may be suitable
Full life insurance may be worth considering if you're looking for lifelong cover. It may also appeal to people who want the option to add eligible benefits, such as Serious Illness Insurance and Children's Insurance.
Before applying for life insurance, it's worth reviewing any cover you may already have, including through your superannuation. Take the time to compare policies and understand the policy features, eligibility requirements and terms before making a decision.
Frequently asked questions
Does life insurance expire?
Whether life insurance expires depends on the type of policy you choose. Full life insurance is designed to provide lifelong cover, provided the policy remains in force, while term life insurance provides cover for a set period of time.
How long does term life insurance last?
With Real Term Life Insurance, your cover lasts for 20 years or until you turn 85, whichever comes first. When your Term Cover period ends, your final expenses benefit continues for a further 10 years.
What happens when a term life insurance policy ends?
When your cover period ends, your life insurance benefit ends, and your final expenses benefit begins. Your final expenses benefit continues for a further 10 years, after which you or your family will receive the benefit in full. You can also choose to cash out half of the final expenses benefit during this period and end your policy.
Can I renew or extend term life insurance?
The options available at the end of a term life insurance policy depend on the insurer and the product. With Real Term Life Insurance, your life insurance benefit ends after your cover period ends, but your final expenses benefit continues for a further 10 years.
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