How to find the best family life insurance policy

Matthew Lang

Matthew Lang

Updated 01/09/2021

Life insurance can be a financial safety net for the whole family if the unthinkable should happen. But it’s also important to know what type of policy is right for your loved ones.

How to find the best family life insurance policy

Compare affordable life insurance for families


Raising a family can come with many expenses, including that surprise excursion the kids forgot about.

But what if something impacted your ability to work?

Life insurance is one way to help secure our loved ones' future and safeguard our kids, partners and ageing parents if anything were to happen.

Here's what you need to know.

Key Points

  • Life insurance can offer peace of mind to your family by ensuring they’re protected from financial strain if anything were to happen to you.

  • Taking out the right amount of cover for your family is crucial in safeguarding their future.

  • We compare services from 10 of Australia’s leading providers to find a policy that fits your needs.

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What are the main types of life insurance for families?

With four different types of life insurance that can protect your family from a range of situations, it's important to know what's best for your family and finding cover that best suits your needs.

A mix of insurances can be helpful, especially if your main breadwinner has unstable employment like contract work or freelancing.

Whereas other families with serious disease in their medical family history might look at adding trauma cover to be on the safe side.

These types of conversations can be uncomfortable, but it's important to protect your family in case something happens to you.

Below are the four types of life insurance and what they cover.

  1. Life cover (also known as term or death cover)

  2. Total and permanent disability insurance (TPD)

  3. Trauma protection

  4. Income protection

What are the benefits of family life insurance?

Life insurance ensures essential costs are covered for your family if anything were to happen to you.

As any family knows, the expenses seem to never end.

Whether it's a school excursion, school fees or even new clothes, things can add up quickly.

Life insurance can help ease the financial strain on the family if one parent were to be injured, have a serious illness or even pass away.

It can be a safety net as the rest of the family are financially secure and don't need to worry about unexpected expenses at a stressful time.

The coverage goes beyond the cost of your mortgage (although this is potentially included), and includes things like funeral costs, utilities and business and personal expenses.

What does family life insurance cover?

The life insurance payout can be spent on whatever the nominated beneficiary chooses.

As circumstances change from family to family, some might use it to pay off debts such as whatever is left on the mortgage whereas others will use it for day to day expenses.

When should you take out family life insurance?

There's really no right time to take out family life insurance.

Many people purchase a policy when they begin their family or as they get older.

Ask yourself, "what would happen if we lost the main earner in our house?"

If you struggle to find an answer, it might be time to consider life insurance.

What is child cover?

Child cover can be added onto your life insurance policy and pays out a lump sum if the insured child suffers a serious illness, injury or passes away.

As caring for a child with a serious illness or injury can place a lot of stress on the family, it can offer more peace of mind to know that child cover is available if your family needs it.

Child cover can also include a carer benefit if you or your partner stop working to support your child.

It can also cover multiple children under the same policy.

How much does family life insurance cost?

The cost of life insurance varies depending on your level and type of cover, as well as your age, medical history, smoking status, occupation, hobbies and add-ons.

A 39-year-old smoker who enjoys extreme sports, for example, would pay significantly more than a healthy 50-year-old office manager with no history of medical conditions.

That said, life insurance can be surprisingly affordable --- for a healthy adult it may even be less than the cost of the family pizza night each week.

Our specialists at Compare Club can help you find one that's right for your family.

Can I buy life insurance for my parents? What if they're in poor health?

Yes, you can.

Any individual can take out a life insurance policy, but if your parents are in poor health or are elderly, their premiums are likely to be extremely high.

To support them, you can take out a life insurance policy and make one of your parents the beneficiary.

This makes sure that your family is protected in case something happens to you.

How can I get started comparing family life insurance quotes?

Our Compare Club specialists can help you find a great policy within a few clicks -- and they even handle the application process for you.

You'll have peace of mind and the knowledge you're covered so that your loved ones are unlikely to face any nasty financial surprises if they have to make a claim.

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Finding the right life insurance is no easy feat, so it’s important to compare your options. Our experts are here to guide you along the way.

This guide is of an informative nature only and not representative of Compare Club products. It should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

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Matthew Lang

General Manager of Life Insurance