When it comes to looking after your loved ones, it helps to know the different types of life insurance options on offer in Australia. After all, no two families are the same, and your cover should be tailored to your specific needs.
From everyday, straightforward protection to lifelong cover, understanding your options is the first step to making an informed decision.
What are the main types of life insurance?
In Australia, the main types of life insurance are:
- Whole life insurance
- Term life insurance
Each type comes with its own benefits, level of flexibility and pricing. The right choice for you depends on your current circumstances, your budget, and the level of support you want to leave behind for your family.
Whole life insurance
After Compulsory Superannuation was introduced in 1992, this type of life insurance was phased out in Australia and has largely been replaced by term life insurance. Whole life insurance policies provided lifelong cover and often included a savings or investment component.
While whole life insurance is no longer an option, Golden Life Insurance offers cover you can keep for the whole of your life. Unlike traditional whole life insurance policies, it doesn’t include any savings or investment components.
Instead, it’s designed to provide a payout to your loved ones when you pass away, giving you long-lasting peace of mind.
Term life insurance
This is the most common type of life insurance in Australia. It offers cover for a specific amount of time, or ‘term’, typically for 10, 20, or 30 years. Once the term ends, your cover stops unless you choose to renew your policy.
If you pass away during the period, your loved ones get a payout. This can ease the burden of bills, mortgages, or funeral expenses.
For a clearer picture of what these costs might be in 2025, read our Funeral Costs Report.
Features of term life insurance
- Provides cover for a set period rather than your whole life
- Suited to people who only need cover for a particular stage of life
Term life insurance can work as a short-term option, but it’s important to remember that your cover stops once the term ends, unless you choose to renew it.
Underwritten vs no medical application
Life insurance policies in Australia can differ not just in what they cover but also in how you apply for them. Some insurers use full medical underwriting, while others offer a simpler, no-medical application process.
Underwritten policies
These require a more in-depth health assessment. Depending on the insurer, they could include:
- Filling out extensive health forms
- Providing medical records
- Undergoing medical exams
- Taking blood tests
Full underwriting can sometimes result in more individualised pricing, but the application process is usually longer and more involved.
No medical application policies
Other providers, like Golden Insurance, take a different approach. Instead of going through medical tests and lengthy health questionnaires, you’ll just answer some health and lifestyle questions over the phone.
Some of the benefits of this kind of application are:
- It’s faster to get some cover
- The process is usually easier with fewer steps
- It’s less intrusive without any blood tests or medical exams
Which type of life insurance is right for me?
There isn’t a one-size-fits-all answer for life insurance as everyone’s circumstances are different. The most important things to consider for your situation are:
- Your age and health
- If you have any dependents
- Your financial obligations (mortgage, debts, etc.)
- Your budget
- Your long-term financial goals
Still unsure? Check out the Government’s Moneysmart guide on life insurance for more information or get in touch with us. We’ll answer any questions you have and provide you with an obligation-free quote, so you can choose the cover that’s right for you.
Why choose Golden Life Insurance?
Finding a life insurance policy that suits your needs is about striking the right balance between affordability and the confidence that your loved ones will be financially protected when they need it most.
For Australian residents aged 40–80, Golden Life Insurance offers a simple application process with no medical exams or blood tests required. There’s no lengthy paperwork involved, just a few straightforward health and lifestyle questions, and you’re ready to secure your cover.
If you want to help ensure your family has a brighter tomorrow, our team of Australian-based life insurance specialists is here to help guide you. Whether you’re ready to set up your policy or just have a few questions, we’re happy to help.
New to life insurance? You might also find it helpful to read our guides on what is life insurance and how life insurance works to get familiar with the basics.