The Life Insurance Trap: Are You Overpaying Without Even Realising It?

For years, getting life insurance meant long forms, endless waiting, and hidden costs buried in fine print. It was one of those ‘set and forget’ things, something you signed up for because you were told it was the responsible thing to do.

But here’s the problem: many Australians are still paying for outdated policies they haven’t reviewed in years. They’re stuck in expensive plans, holding cover that may not even suit their needs anymore.

And if your life insurance is tucked away inside your super fund? You might assume you’re covered, but what if it’s costing you more than you think for cover that may not even be adequate?

It’s time to take a fresh look. Because, like everything else in finance, technology is changing the game.

Why You Should Care: The Hidden Costs No One Talks About

If you’ve got an existing life insurance policy, do you actually know how much of your premium goes towards brokerage fees? Many people don’t. Unlike home or car insurance, where you’d shop around for a better deal every year, life insurance is often left untouched for decades.

But here’s the kicker: if your policy includes brokerage fees, you could be paying thousands more over time for the exact same level of cover.

And for those relying on superannuation-based life insurance, it’s not as straightforward as it seems. Many default policies inside super:

• Offer limited cover – The payout might not be enough to support your family long-term.
• Aren’t portable – If you change super funds, your cover could disappear.
• Can be tax-inefficient – Depending on the beneficiary, payouts could be taxed at a much higher rate.

How Tech is Stepping Up: No More Guesswork, Just Instant Comparisons

At TaxTank, we’re on a mission to make tax fun (yes, really…), so when we saw a bold life insurance company shaking things up, we knew we had to get in on the action.

Let’s face it, we use tech for everything: managing our taxes, tracking spending, even grabbing groceries with a tap. So why is life insurance still acting like it’s in 1985? Fax machines, paperwork, and weeks of waiting? No thanks. It’s time insurance caught up.

Enter NobleOak’s Quick Quote tool! Finally bringing speed, simplicity, and transparency to life insurance. No fluff, no waiting games, just straightforward cover when you need it.

• No long winded quotes – Get instant results without the hassle.
• No weeks of waiting – Compare and switch easily
• No hidden exclusions – NobleOak will let you know when you apply about any loadings or exclusions
• No hidden fees – Competitive rates without the sneaky extras.

Whether you’re an individual wanting to compare and save or an SMSF trustee ensuring your fund is structured efficiently, life insurance has finally stepped into the digital age.

Because when it comes to protecting your future, the old way just doesn’t cut it anymore.

The Bottom Line: Don’t Overpay for Outdated Life Insurance

Life changes, and so should your life insurance. But if you haven’t reviewed your policy in years, you could be throwing money away without even realising it.

Many Australians are relying on potentially inadequate super-based cover, or simply missing out options that could be better and more cost-effective. And the worst part? They don’t even know it.

Why This Matters

Let’s talk numbers. Around 8.8 million Australians hold life insurance through their super fund¹, assuming it’s the best (or only) option. But default super policies aren’t personalised, and they often provide less cover than you actually need. If your circumstances have changed, like kids, mortgages, businesses, your family could be left exposed.

Then there’s the commission trap. Traditional life insurance sold through brokers or advisers can include hefty commissions. Over time, that can add up to thousands of dollars in unnecessary costs.

So, if you’re still paying for a policy you set up years ago, chances are you could be overpaying, underinsured, or both.

How Tech is Fixing the System

Most people stick with the same life insurance provider for years, not because it’s the best deal, but because switching feels like a nightmare. The process is slow, confusing, and buried in industry jargon.

The old way of doing life insurance is outdated and broken, keeping people locked into expensive policies and unnecessary hoops to jump through.

But technology is changing the game.

Direct-to-consumer platforms like NobleOak are cutting out the middlemen, offering fully underwritten life insurance without the markups, the paperwork, or the waiting games.

And now, you can access your NobleOak Quick Quote directly from your TaxTank platform, making it easier than ever to take control. Forget months of back-and-forth, with just a few clicks, you can compare policies, uncover potential savings, and ensure you’re not paying for more than you need.

TaxTank: Always Bringing More to the Table

Still holding onto a dusty old policy? Now’s the time to check what you’re paying, compare what’s out there, and make sure you’re not funding a system designed to keep you in the dark.

At TaxTank, we’re all about giving you more – more transparency, more control, and more ways to keep your money where it belongs. We’ve made tax smarter, simpler, and dare we say fun.. So why stop there?

Now, with life insurance at your fingertips, you can ditch the old-school processes and embrace the future of financial freedom, all from your TaxTank platform.

Because we’re always on the lookout for better, smarter ways to put you in control, and this is just the beginning.

¹Association of Superannuation Funds of Australia. March 2025

The Cost of Being Unprepared: Why Income Protection is More Important Than Ever

You’ve spent years building financial security, investing, planning, and making smart moves. Then, bam! Life throws a curveball, like that time you thought you could still do a backflip at 35 and spent six weeks in physio questioning your life choices.

We insure our homes, cars, pets, and even phones, yet we often forget to protect the one thing that pays for it all, our income.

If you had a machine printing $100,000 a year, you’d insure it, right? Well, that machine is you. And just like that trampoline incident, you never think something will go wrong, until it does.

Income Protection isn’t paranoia; it’s smart planning. Because when life pulls the rug out, the cost of doing nothing is always higher than the cost of being prepared.

The “She’ll Be Right” Mindset (And Why It’s a Bit Risky)

Australians love a “she’ll be right” attitude, it’s practically in our DNA, but when it comes to protecting your income, that mindset can lead to financial disaster.

Imagine you’re a property investor juggling mortgage repayments and maintenance costs, or a sole trader covering every business expense. Now picture an illness or injury forcing you out of work for months. Without a steady income, how long could you keep up with your outgoings? The stats tell a sombre story:

• 45% of Australians have one month’s worth of savings or less with just 23% being able to last last six months or more¹
• Centrelink’s JobSeeker payment is approximately $390 a week², while the average mortgage repayment is over $900 per week³. Renters don’t fare much better, with capital city rent ranging between $570- $775 per week⁴.

Without a safety net, losing your income doesn’t just mean tightening your budget, it could mean falling behind on repayments, defaulting on loans, or selling assets at a loss.

Hoping for the best isn’t a plan. Without financial protection, one setback could undo years of hard work.

Enter: Income Protection, Your Financial Safety Net

This is where Income Protection Insurance comes in. It’s not about expecting the worst; it’s about ensuring an income loss doesn’t derail your financial future.

How does it work?

• Income replacement – Covers up to 70% of your pre-tax income, paid in monthly instalments.
• Flexible benefit periods – Choose cover from 1 year, 2, 5 or 10 years, or to age 65, depending on the insurer.
• More than salary protection – Some policies cover rehabilitation or retraining costs, helping you get back on your feet.

Still unsure? Ask yourself:

• If you couldn’t work for six months, how would you cover rent, mortgage, or bills?
• Would you need to drain savings, rack up credit card debt, or sell assets?
• Could your family maintain their lifestyle without your income?

If these questions make you pause, it’s worth considering a plan. Because while we all hope for smooth sailing, life has a way of throwing storms our way, and when it does, Income Protection ensures you’re not left sinking.

Not All Income Protection Policies Are Created Equal

So, you’re thinking about Income Protection, smart move. But before you dive in, here’s something to keep in mind: not all policies are built the same. The right plan for you depends on a few key factors, including how long you want coverage, what percentage of your income you’ll receive, and how you structure your policy.

Tax Deductible? Yes, If You Do It Right

One of the biggest mistakes people make is not holding their Income Protection policy in the most tax-effective way. If you take out a policy personally, your premiums are tax-deductible in your individual tax return, meaning you can claim them as an expense, helping to reduce your taxable income.

However, if your policy is bundled into your superannuation, those tax benefits may not apply, and payouts could be more restrictive. Understanding the tax side of things could mean thousands of dollars saved over time, so it pays to get it right. You should consult a tax adviser for advice on your specific situation.

A Smarter Way to Protect Your Income

At TaxTank, we believe your money should work for you, not the other way around. That’s why we’ve partnered with NobleOak, a multi-award-winning Australian insurer known for competitive premiums, transparent policies, and no hidden surprises, including zero brokerage fees.

What’s in it for you?

• Special Benefits: Enjoy special offers for TaxTank members, ensuring you get value-driven coverage.
• No Brokerage Fees: Unlike many insurers, NobleOak offers direct-to-customer policies, meaning no unnecessary middleman costs, just straightforward, cost-effective protection.
• Transparent, No-Fuss Cover: No industry jargon, no upselling, just clear, reliable coverage designed for Australians.

Protection + Tax Deduction? That’s a Win-Win

Even better, you can generate a quick quote with NobleOak directly from your TaxTank dashboard, secure your cover in minutes, and instantly track your tax position once it’s paid.

And because we love a good tax perk, this is one of the rare cases where the ATO may be able to help you keep money in your pocket (as it not guaranteed they will get a refund… but that’s a conversation for another day.)

So why wait? Protect your income, help to maximise your deductions, and stay ahead of life’s curveballs.

¹Saving account statistics December 2024 (Finder.com.au)

²www.servicesaustralia.gov.au

³www.loans.com.au. March 2025

⁴www.domain.com.au March 2025