Onepath Life Insurance Review 2024

Overview

OnePath Life Insurance has been offering insurance to Australians for more than 140 years.

With some policies you can choose to receive a one-off lump sum or be paid in equivalent instalments. 

OnePath is the only insurer we came across that gives you the opportunity to earn Qantas Frequent Flyer Points on your premiums.

What types of cover does OnePath offer?

Nobody likes thinking about falling ill, having an accident or worse, but it’s important to be prepared if something were to happen to you. It’s all about providing a secure financial future for anyone who depends on you.

If you’ve got no dependents but not much in the way of savings, you may simply want income protection to cover your bills. Have a history of illness in your family? You may want to consider trauma (critical illness) cover. And if you have a growing family or big financial commitments like a mortgage, you might prefer the reassurance of life cover.

OnePath offers a wide range of options, some of which you can pay for with your super. 

Life cover

OnePath’s OneCare Life Cover¹ provides a one-off payment – or equivalent instalments – that can be used to pay off debts, cover day-to-day expenses and help with your beneficiaries’ future needs. 

Key features:

• A lump-sum payment if you die or are diagnosed with a terminal illness

• Premium discounts when you package with other OneCare products

• The ability to earn Qantas Points on your premiums

Trauma cover (Critical illness cover)

OnePath Trauma Cover¹ gives you a full lump sum benefit for up to 46 serious medical conditions, including cancer and heart disease. You can choose from three products – Severity, Comprehensive and Premier.

Severity Trauma Cover key features:

• Pays a full benefit on 33 conditions, based on the severity

• Your premiums can be waived for up to six months while you’re pregnant (only available with Severity Trauma cover) 

Comprehensive Trauma Cover key features:

• Pays a full benefit on 46 conditions, and a partial benefit for angioplasty and heart surgery

• The option to be paid in instalments

Premier Trauma Cover key features:

• Pays a full benefit on 44 conditions

• Pays a 20% partial benefit for 16 conditions including cancer, burns, diabetes and endometriosis

Total permanent disability (TPD)

TPD insurance¹ gives you financial security if an illness or injury stops you from working or doing everyday domestic duties. You can choose this cover to be within or outside your super. Our TPD guide has more information on how this type of cover works.

Key features:

• One-off payment or monthly instalments if you suffer a total and permanent disability and your unable to return to work or domestic duties

• Life Cover buy-back option – restore Life Cover 12 months after a TPD benefit is paid

• Up to 25% of the TPD payment will be received if you lose the use of one limb, where ‘limb’ is defined as the whole hand or whole foot or the sight in one eye

Income secure cover (Income protection)

Your ability to earn an income is an important asset. OnePath Income Secure¹ can cover up to 70% of your monthly income if you can’t work because of illness or injury. Choose between three products, from OneCare Income Secure Protection, OneCare Living Expense Cover and OneCare Business Expense Cover.

Income Secure key features:

• Monthly payments to replace part of your income if you can’t work because you’re sick or injured 

• Your insurance premium is automatically waived while you receive payments

• Indexation can be applied so your monthly benefit  increases in line with CPI at each renewal

Living Expenses cover key features:

• Designed for people who do not have an income, such as home-makers or retirees, part time or casual workers

• Monthly payments if the life insured is significantly disabled or injured

• Cannot be held inside super

Business Expense cover key features:

• Designed specifically for small business owners and covers fixed business expenses if you are totally or partially disabled to keep the business afloat

• Only available outside of superannuation

• Cover continues during unemployment

What member benefits does OnePath offer?

You can receive some interim insurance cover while OnePath assesses your application. A range of premium discounts are also available, from sum insured, to multiple cover, to multiple life discounts.

Can I get OnePath Life Insurance through my superannuation?

Yes, you can get Life, TPD and Income Protection through your super. Compare Club can help with this. 

Trauma/Critical Illness cover isn't available with your superannuation through any insurer. 

Want to know more about how life insurance works with superannuation? Read our guide.

Performance of OnePath

According to Moneysmart.gov.au, OnePath’s number of finalised claims between 1 July 2020 and 30 June 2021 is 2.0 months to settle a claim with a claims acceptance rate of 98.1%, which is higher than the industry average claims accepted rate of 96.6%².

OnePath has a 10.2% policy cancellation rate, which is lower than the industry average of 13.6%².

Maximum cover amount*

• Life cover – based on individual circumstances

• TPD – $5 million

• Critical illness – $2 million

• Income protection – $60,000 per month for Business Expense cover, $30,000 per month for Income Secure cover, $5,000 per month for Living Expense Cover

*Cover amounts are subject to financial underwriting.

Maximum entry age

• Life cover – 75 (outside super) or 74 (within super) 

• TPD – 75 (outside super) or 74 (inside super)

• Trauma cover (Critical illness) – 65

• Income protection – 75 for Living Expense cover, 60 for Income Secure

Expiry age

• Life cover – 130

• TPD – 65 (through super-linked arrangement) otherwise, 100 

• Trauma cover (Critical illness) – 70

• Income protection – 80 for Living Expenses Cover, 65 for Income Secure

Key exclusions

OnePath has listed its key exclusions by product type. You can see them below.

Life cover

A Life Cover claim will not be paid if the Life Insured’s death was caused or contributed by:

• Suicide within the first 13 months of cover starting, cover increases and cover reinstatement through the Life Cover Buy Back option

• Illness or injury that is caused from the Life Insured’s intentional self-inflicted act (Applies to the Extended Terminal Medical Condition Benefit)

TPD

A TPD Cover claim will not be paid if total and permanent disablement is either caused, or contributed to, by,

• A self inflicted injury or attempted suicide and if the Life Insured dies within the first 13 months from the cover start date for TPD

A Business TPD claim will not be paid out if the illness or injury is a result of:

• Stress, anxiety, depression, fatigue (including chronic fatigue syndrome, fibromyalgia), physical symptoms of a psychiatric illness or condition or psychosis

• Personality disorders or emotional or behavioural disorders related to substance abuse or dependency (including alcohol, drug or chemical abuse or dependency)

• Something OnePath has specifically excluded as will be listed on your policy schedule 

Trauma cover (Critical illness)

A Trauma cover claim will not be paid if:

• The trauma condition has arose as a result of the life insured’s intentional self-inflicted act OR if the life insured dies within the first 13 months from the cover start date

• A medical cure for HIV (occupationally acquired) or HIV (medically acquired) is found that renders HIV inactive and non-infectious OR if a medical treatment is developed that prevents AIDS from occurring

• The life insured has a medical condition that arises directly or indirectly from illicit drug use (under Severity Trauma Cover)

• The life insured is not following the advice of a medical practitioner in relation to their condition (under Severity Trauma Cover) 

• Something OnePath has specifically excluded as will be listed on your policy schedule 

Income protection

An Income Secure Protection Insurance claim will not be paid if the claim is either directly or indirectly caused by:

• Anything happening to the Life Insured in war

• The Life Insured’s intentional self-inflicted act

• The Life Insured’s uncomplicated pregnancy, miscarriage or childbirth. However, benefits will be paid if the Life Insured is totally disabled for more than three months from their pregnancy end date and continues to be totally disabled

• The Life Insured being unemployed when illness or injury occurs

• The Life Insured’s illicit drug use

• The Life Insured participating in criminal activity as well as for any period the life insured is incarcerated due to their participation in criminal activity

• Something OnePath has specifically excluded as will be listed on your policy schedule 

A Business Expense Cover claim will not be paid if the claim is either directly or indirectly caused by:

• Anything happening to the Life Insured in war

• The Life Insured’s intentional self-inflicted act

• The Life Insured’s uncomplicated pregnancy, miscarriage or childbirth. However, benefits will be paid if the Life Insured is totally disabled for more than three months from their pregnancy end date and continues to be totally disabled

• The Life Insured ceasing to own or operate a business prior to when the illness or injury causes the disability to occur

• The Life Insured’s claim arises directly or indirectly from illicit drug use

• The Life Insured’s claim arising directly or indirectly from a disqualification, deregistration of restriction placed on the Life Insured’s professional membership or licence to perform the duties of their primary occupation

• The Life Insured participating in criminal activity including any period the life insured is incarcerated due to their participation in criminal activity

• Something OnePath has specifically excluded as will be listed on your policy schedule 

A Living Expense Cover claim will not be paid if the claim is either directly or indirectly caused by:

• Anything happening to the Life Insured in war

• The Life Insured’s intentional self-inflicted act

• The Life Insured’s uncomplicated pregnancy, miscarriage or childbirth. However, benefits will be paid if the Life Insured is totally disabled for more than three months from their pregnancy end date and continues to be totally disabled

• Something OnePath has specifically excluded as will be listed on your policy schedule 

OnePath life insurance costs

Everybody’s different, so your premium will be based on your individual circumstances, including your age, occupation and your insurance needs.

That's where Compare Club's specialists can help, by working out what type of policy could be right for you at a cost that fits in with your budget.

Of course, it’s worth consulting a financial advisor before making any financial decisions.

FAQs

Who owns OnePath Life?

OnePath Life Insurance is issued by Zurich Australia Limited, part of the Zurich Financial Services Australia Group.

Do I need a medical exam to get life insurance with OnePath?

Possibly yes, as the underwriter may require blood tests to be done. If this is the case however, it will be at no additional cost to you. 

Does smoking affect my premiums?

Yes. Smokers can pay up to 50% more for their premiums than non-smokers.

Does OnePath life insurance include funeral cover?

An Advance Assistance benefit that pays up to $25,000 is included with Life Cover insurance held outside of super.

Is it easy to cancel OnePath Life Insurance?

Yes. You can cancel in writing within the cooling off period, which is 28 days from the start date at no cost to you. You can cancel at any time after the cooling off period in writing; however, premiums paid through monthly instalments are not eligible for a refund.

Where can I buy life insurance with OnePath?

Compare Club’s life insurance experts can help you find an affordable policy quickly and easily, and take care of the paperwork for you.

1. OnePath Life, Critical Illness, TPD and Income Protection, accessed October 2021.

2. MoneySmart, Life insurance claims comparison tool, accessed October 2021.

^ You must be a Qantas Frequent Flyer member and correctly register valid membership details with OnePath Life within 30 days of taking out a policy before you can start earning Qantas Points on eligible OnePath Life premiums you pay. Qantas Points are earned in accordance with the OnePath and Qantas Frequent Flyer program terms and conditions available at onepath.com.au/qff-terms-conditions. Membership and the earning and redemption of Qantas Points are subject to Qantas Frequent Flyer program terms and conditions available at qantas.com/terms. Qantas Points are only earned on premiums you pay after OnePath Life has received your Qantas Frequent Flyer membership details. Qantas does not endorse, is not responsible for and does not provide any advice, opinion or recommendation about this product of the information provided by OnePath Life in this communication.

The information contained in this guide is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. As such, it is important that you consider the appropriateness of any advice and the relevant product disclosure statement (PDS) before proceeding. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Life Insurance Comparison Pty Ltd.