A guide to life insurance for women

Matthew Lang

Matthew Lang

Updated 15/11/2022

Is life insurance different for men and women? Is it worth getting a policy? Find out more about how it works, policy types, features, costs and how to get the best value for your money.

A guide to life insurance for women

A guide to life insurance for women

Life insurance can help financially safeguard you and your loved ones. 

Most insurers offer different types of life insurance that cover different situations, such as if you pass away, if you're diagnosed with a terminal illness, or if you can't work due to an illness or accident.

But how does life insurance work and is there anything specific to consider if you’re a woman?

Read on to learn more about life insurance for women.

Key Points

  • Life insurance is designed to offer financial protection if something unexpected happens, such as if you pass away or are too ill or injured to work for an extended period of time.

  • No matter your gender, life insurance can help financially safeguard you and your loved ones. 

  • Life insurance tends to be cheaper for women than it is for men.

  • Regardless of your situation, it pays to shop around so you can find the best value for money.

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What is life insurance?

Life insurance is designed to offer financial protection if something unexpected happens. This includes situations such as if you pass away, become terminally ill and/or are unable to work due to an illness or an accident.

There are four main types of life insurance in Australia:

  • Term life insurance: Also known as 'life cover' or 'death cover': this type of cover pays out a lump sum to a nominated beneficiary if you pass away or are diagnosed with a terminal illness.

  • Trauma insurance: Also known as 'critical illness cover', this type of cover provides a lump sum payment if you suffer a particular illness or injury, such as cancer or a heart attack.

  • Total and permanent disability (TPD) insurance: TPD cover pays a lump sum if you can't work ever again due to permanent illness, injury or disability.

  • Income protection insurance: This type of cover pays about 70% of your usual income, usually in monthly instalments, if you can't work for a period of time, due to an illness or an accident.

How does life insurance work in Australia?

As we’ve mentioned, life insurance can offer financial protection in specific situations.

Different life insurance products cover different scenarios, such as if you pass away, become terminally ill or are too ill or injured to work.

You can choose to buy one or multiple types of life insurance.

The policy's product disclosure statement (PDS) lays out how a specific policy works, including:

  • What's covered and what's excluded

  • What information you need to provide to the insurer

  • Whether there's a waiting period before you can make a claim

  • How to make a claim

  • How to dispute or complain about the claims process

Once you have a policy in place, you pay a premium to the insurer (this is usually paid monthly or annually).

The insurer agrees to pay money (called a ‘benefit’) to you or a beneficiary, such as your partner or children, in any of the situations covered in your policy.

Is life insurance less for women than for men?

That’s the million-dollar question, but unfortunately it’s not easy to answer because life cover premiums can vary depending on factors like your age, health, smoking status, and occupation.

The good news, though, is that life insurance tends to be cheaper for women than for men. 

That’s because women have a longer average life expectancy and are generally considered less of a risk to insurers.

In any case, costs vary between insurers, so it’s worth shopping around to find a policy that offers the best value for money for your specific circumstances.

Compare Club has a specialist team who can help you find a policy that fits.

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What are the advantages of life insurance for women?

If you’re not sure whether or not to get life insurance, it’s worthwhile considering the following:

  • Financial security for you and your loved ones: Whether you’re single or have a partner or children, life insurance can help cover your bills and other important costs if something unexpected happens.

  • Peace of mind: With life insurance, you can rest easy knowing you and your loved ones are financially covered during any rough periods.

  • Lower premiums: Life insurance for women is generally cheaper than it is for men.

  • Tax benefits: Some types of life insurance, such as income protection, are tax-deductible. Life insurance payouts to beneficiaries also generally aren’t taxed.

  • Stay-at-home parents: Did you know that some life insurers actually calculate how much it would cost if a parent was unable to care for their child or passed away?

Are there disadvantages of life insurance for women?

While there are plenty of potential benefits of life insurance for women, there are a couple of possible drawbacks too.

The obvious one is that it’s an added expense. That said, life insurance cover can cost as little as a few dollars a day – around the cost of a cup of coffee.

Another point to keep in mind is that some types of life insurance, like TPD and income protection, generally require you to be working to be covered. 

So if you take time off for parental leave, for example, your coverage could change or be interrupted unless your policy has features tailored to suit circumstances like this. 

Whether this applies to you or not, finding the right policy on your own can be a bit tricky and time-consuming, which isn’t ideal if you’ve already got a long to-do list.

Luckily we can help with that part. 

Our comparison tool makes it easy to compare multiple policies side by side, and you can get expert help from a Compare Club life insurance expert at the same time.

Click the button below to get started.

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This guide is opinion only and 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