How to buy and compare life insurance in Australia 

Comparing different ways to purchase life insurance

There are three main ways to purchase life insurance in Australia: through a financial adviser or broker, directly from a life insurer, or through your super fund. Each option has its pros and cons, depending on your individual needs and circumstances.

Channel / Provider Type	Example	Pros	Cons
Through a financial adviser or broker	Independent adviser or planner	– Personalised financial advice – Guidance on multiple insurers – Help tailor your cover	– May involve commissions and fees which may make the overall cost more expensive – Limited to a panel of insurers
Direct	Award-winning cover from NobleOak	– Buy online or over the phone – Competitive premiums – No adviser commissions – The freedom to make your own choices and decide how much cover you need	– No personalised financial advice as direct insurers are usually only able to give general advice under law – You will need to do your own research given the  general advice model
Through your super fund	Australian Super	– Premiums deducted from super – Automatic basic cover – Easy to manage	-You have limited control on insurance provider and features, cover types and amounts. For example critical illness (trauma) cover is generally not available through superannuation, which means you may not be protected against serious medical conditions like cancer, stroke or heart attack. – Can reduce your retirement savings as you are paying for your insurance through your super -The possibility of delayed payouts to beneficiaries. Life insurance benefits paid via super are subject to superannuation legislation, including trustee discretion and potential tax implications. This can affect how quickly and directly your beneficiaries can receive the funds.

We’ll explore each of these options in more detail below to help you make informed life insurance comparisons.

Purchasing life insurance through a financial adviser or broker

You can purchase a life insurance policy through a financial adviser, financial planner or life insurance broker who can guide you through the process of purchasing life insurance, including the different types of cover available, and the level of cover that is right for you. They will typically recommend products from a panel of life insurers who offer intermediated life insurance solutions.

How do NobleOak’s products compare to advised products bought through intermediaries?

NobleOak is a direct life insurer, which means you can purchase a policy directly, without needing to go through a financial adviser or insurance broker. There are two main things you may want to consider when comparing NobleOak life insurance to life insurance taken out through an adviser:

Dealing with a middleman:

• Possible fees and commissions: While financial advice is included in the services provided by an adviser or financial planner, you might want to consider that this advice typically comes with the extra cost of fees and commissions paid by the insurer to the adviser, which may then be factored into the premiums you pay. You also have to pay for the adviser which will also incur additional costs
• Difference in advice provision: An adviser or financial planner will potentially have the license to provide you with personalised advice. NobleOak cannot offer you personalised advice, merely guide you with general product advice under our AFS license. This means you will need to undertake your own research when deciding which insurance product you need or which provider to buy with.

Purchasing life insurance directly:

‘Direct life insurance’ is when you buy a policy straight from an insurer, usually online or over the phone. This option may give you more opportunities to have your questions answered. It may reduce costs since you’re not paying for adviser commissions or brokerage fees.

How does NobleOak compare to other direct life insurers?

The direct model means you can purchase a policy directly through a life insurer without a ‘middleman’. Direct insurers operate in a variety of ways, and the products they offer can be quite different. When you are comparing direct life insurers, there are a few things you may want to consider:

Quality of cover:

• Direct life insurers will often offer only limited cover or low-level amounts of cover. NobleOak offers quality and fully underwritten life insurance up to $25 million, which means you can choose the level of cover to suit your individual needs and circumstances.
• There are also a number of features available with NobleOak’s products that may not be available with other life insurers’ products. NobleOak is the most awarded direct life insurer, 6 years running (2019- 2024), as a result of offering quality cover at an affordable price.

Underwritten insurance:

• Some direct life insurers, including NobleOak, offer fully underwritten cover. This means a number of health, occupation and lifestyle questions are asked upfront, and this sometimes may mean medical tests and access to your medical records. This results in greater certainty for the insurer about the risks that will be taken when insuring you, leading to a greater level of certainty for you at claim time and cover which is potentially more tailored to you. Meanwhile, some other direct life insurers might only offer partially underwritten cover, where your individual circumstances and risk factors are not factored in. This may increase uncertainty during claim time and potentially increase the cost of your cover.

Claims experience:

• Direct life insurers sometimes include additional built-in exclusions, which can cause uncertainty or surprises at claim time. NobleOak’s fully underwritten cover is designed to minimise this uncertainty by assessing your situation upfront, so you know what you are paying for and what you are covered for.

The cost of your premiums:

• Some direct life insurers may need to account for higher overheads due to having intermediaries or reseller fees, which can result in higher premiums being passed onto a policy. At NobleOak, we do not pay any intermediary or reseller fees.

Obtaining life insurance through your superannuation fund

Many people have some life insurance products automatically included in their super, which has usually been arranged by their employer or their superannuation fund. Life cover and TPD cover are usually provided on an opt-out basis once you’re eligible. Eligibility includes that you’re at least 25 years old, you have an account balance of $6,000 or more, and you have received a super contribution or rollover in the last 16 months.

How does NobleOak compare to insurance through super funds?

There are a few key differences between purchasing a life insurance policy from a direct life insurer, such as NobleOak, and holding life insurance products through your superannuation fund:

Cover amounts:

A superannuation fund can only offer a limited amount of cover that might not be enough for your needs and personal circumstances. NobleOak offers quality and fully underwritten life insurance up to $25 million, which means you can choose the level of cover to suit your individual needs and circumstances.

Impact on your super balance:

Taking out a policy with your superannuation fund means fees are paid from your superannuation balance, which results in reduced super savings.

In some cases, when your super balance drops below a certain amount, your insurance must be cancelled, and you may only come to realise this at claim time, leaving you uninsured.

When you purchase life insurance through NobleOak, it is a separate policy that does not impact your superannuation balance.

Life insurance product availability:

Generally, only life cover, TPD Insurance, and sometimes Income Protection Insurance can be purchased through a super fund.

Trauma insurance is not available within superannuation but is one of the cover types available through NobleOak outside superannuation.

Claims experience:

You will potentially have more access to the life insurers’ teams if you buy direct, including customer support and claims teams. NobleOak, for example, has a dedicated claims team that will help you and/or your loved ones throughout the entire process.

Tax advantages:

There may be some tax advantages for those who hold a life insurance policy through their superannuation fund. Life insurance and TPD insurance purchased within your super is generally not personally tax deductible.

However, if it is purchased through a Self-Managed Super Fund (SMSF), the SMSF may be able to claim premiums in its annual tax return under certain circumstances. You can find more information about taking out NobleOak Life Cover within an SMSF here, and you should consult with a tax professional or financial planner if purchasing through an SMSF.

Income Protection policy premiums for cover provided through a superannuation fund are generally not deductible against your personal income if the premiums are deducted from your superannuation contributions.

Using life insurance comparison tools

Online comparison tools can be a good starting point when buying direct and comparing life insurance providers. These sites let you assess features, benefits, and premiums side by side before getting a quote.

Life insurance comparison site	Explanation
Finder	Finder enables users to quickly navigate through the site and compare different life insurance features. If you’re planning to get a ​life insurance policy​, this is one of the key comparison sites in Australia.Finder can help you explore your options to strike a balance between cost and what is covered.  You’ll find a table with different life insurers on the site, and you can sort the list according to the maximum entry age and policy type. Click the get quote buttons and fill in the forms and get your indicative quotes in minutes.
Canstar	Canstar is another key comparison site which can provide you with a comparison of quotes based on you entering some of your details. When you get to the website, you can input your age, gender, and smoker status. After you click Compare, you’ll see a list of selected life insurance companies based on their star rating for your three inputs, and you can then choose which ones you want to get a quote from by clicking through to their site.You can also arrange the results based on the insurer’s Canstar star rating, sum insured amount and etc, or you can filter your search and look for a provider if you have already identified one you think may be right for you. For each insurer included in the site, there’s a link leading directly to the insurer’s official site where you can get a quote.
Mozo	Mozo provides a wide range of helpful details about many types of insurance, including life, car and home. This site’s comparison tool includes some life insurance providers. You can click on any of them on the home page.
Moneysmart	Money Smart is an Australian government site which provides useful information on a lot of different topics (including life insurance) to help you manage your money. When you are choosing a life insurer, looking for a track record in both retaining customers and paying claims are some key factors you should consider in your consideration criteria.Money Smart provides helpful information about life insurance more generally and it also provides claims and retention statistical comparisons across direct life insurers in the industry.

What to look for in a life insurance provider

Finding a suitable insurance policy is something one should carefully take time to research. Perhaps the most significant variable is the insurance company itself. To help you with this decision, here are four crucial things to look for in a good insurance provider and policy:

1) Complete transparency

Before you make a final decision, make sure you understand every detail of the policy you are considering purchasing.  Otherwise, you may end up buying something that you don’t really need. Even worse, you might assume that you’re covered for a condition the company denies.

To prevent this kind of thing, always read through the entire PDS (Product Disclosure Statement) and don’t be afraid to ask questions.

2) Reputation

The provider’s reputation goes hand-in-hand with their financial stability. The data tells you a part of the story. But to get the full scope, you should get information first-hand from other policyholders.

You can look up most insurance companies online. Look for companies that have plenty of positive reviews about their staff, service, and claims process.

Another thing you can look for is any industry awards received. Companies that have left a mark on the industry often have accolades to go with it.

3) Good customer service

When you’re comparing life insurance providers, it’s a good idea to look for reliable customer service. Look for providers that offer:

• Easy access: Multiple contact options (phone, email, live chat) with minimal wait times and real human representatives, not endless automated systems.
• Quick response: If you receive fast, helpful responses when you’re comparing policies, it’s a sign you’ll be treated well when you’re filing claims. If they’re hard to get hold of now, imagine how frustrating it’ll be when you really need them.
• Clear communication: Representatives should be pleasant, knowledgeable, and able to answer your questions thoroughly.

Before deciding, it’s a good idea to check customer reviews on Feefo, Google Reviews, and independent ratings from agencies like Canstar. Poor customer service reviews are red flags. Remember, excellent service provides invaluable peace of mind when you need it most.

4) Suitable for your needs and capabilities

This may be the most important part. At the most basic, a reputable insurance provider offers a suitable insurance policy that covers your needs and fits your budget.

You may want to attain life cover only or consider cover that provides “living benefits” such as income protection, total or permanent disability cover or trauma cover.

It would be best to make a list of your current circumstances, along with your goals. You can then calculate a representative life insurance rate on your own. You can use an online life insurance calculator (see NobleOak’s insurance calculator here) to get a good idea of how much it would cost.

Award-winning life insurance

At NobleOak, we offer fully underwritten, award-winning cover directly, so you can avoid the extra fees and commissions that come with some other providers. Compare your options, explore the benefits, and get a quote tailored to your needs in just a few minutes.

Start your quote with NobleOak

Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.