Snapshot: Life insurance comparison with other insurance types
We all understand the importance of insuring our homes and cars to protect these valuable assets. However, many people overlook something even more valuable – their own lives and their ability to earn an income. Protecting these aspects ensures not just financial security but peace of mind for you and your loved ones.
Life insurance provides financial security for you and your loved ones, helping you prepare for life’s unexpected challenges. . This snapshot shows, at a high level, how life insurance compares to other types of insurance and underscores its importance in creating a complete safety net.
Below is a comparison highlighting the types of insurance coverage available.
| Insurance Type | What It Covers | Average Premium Rates (Approximate only) | Average Claim (Approximate only) | Take-up rate |
|---|---|---|---|---|
| Life1 | Provides a lump sum payment to your beneficiaries in the event of your death or terminal illness. This financial support helps your loved ones manage financial responsibilities, such as mortgage repayments, funeral costs, debts, and/or everyday living expenses. | $40 per month* | $100,000 to $500,000 lump sum | 60%1 |
| Total and Permanent Disability (TPD)2 | Provides a lump sum if you become totally and permanently disabled and are unable to work due to disability. | $20 per month* | $100,000 lump sum (Range $100,000 to $2m) | 20%2 |
| Trauma3 | Provides a lump sum upon diagnoses of specified critical illnesses such as cancer, heart attack, or stroke, which can help with recovery costs. | $20 per month* | $100,000 lump sum (Range $100,000 to $2m) | 20%3 |
| Income Protection4 | Replaces a portion of your income if you're unable to work due to illness or injury. | $77 per month* | $150,000 lump sum Average policy $3,000 per month benefit | 20%4 |
| Health5 | Covers medical costs including hospital stays, surgeries, and other healthcare expenses not fully covered by Medicare. | $166 to $251.45 per month | $2,500 average claim per hospital admission | 53%5 |
| Motor Vehicle#6 | Protects against costs related to vehicle damage, theft, or accidents. | $147 to $160 per month | $1,000 to $10,000 Comprehensive car insurance | 80%6 |
| Contents#7 | Covers damage or loss of personal belongings within your home due to theft, fire, or other risks. | $85 to $308 per month | $1,000 to $10,000 Combined home and contents insurance | 70%7 |
# Average prices quoted. Prices vary dependent on location.
Understanding these various insurance types underscores the value life insurance offers in safeguarding not just assets, but the very livelihood and well-being of individuals and their families. For a clearer understanding of your options, consult a licensed financial adviser who can help tailor solutions to your unique circumstances.
References
- How Much Does Life Insurance Cost? Canstar, Jun 2024; Cost of life insurance in Australia. Finder, November 2024; Life Insurance Claims Statistics – All the facts and figures. Insurance Watch, 2024.
- Disability Insurance. Life Sherpa; Understanding TPD Insurance Costs in Australia: How Much Do You Really Need? Aspect Underwriting; Total and permanent disability (TPD) insurance. MoneySmart; TPD Payout Calculator for TPD Claims. Aussie Injury Lawyers, 2025.
- How much does trauma insurance cost? Finder, April 2024.
- Cost of income protection in Australia. Finder, November 2024; How much does income protection insurance cost? Canstar, December 2021.
- How much does private health insurance cost? Canstar, February 2025; 19 Health Insurance Statistics and Facts in Australia [2024] Take a Tumble, February 2024; Health Insurance Statistics in Australia 2025. Money.com.au, March 2025.
- How much does car insurance cost? Canstar, March 2025; Average car insurance cost and statistics in Australia. Money.com.au, January 2025
- How much does home insurance cost in Australia? Finder, October 2024; Home Insurance Cost: How much is home and contents insurance? Canstar, November 2024; How Much Is Home And Contents Insurance In Australia? Forbes, November 2024
This document is prepared by ClearView Life Assurance Limited (ABN 12 000 021 581, AFSL 227682) (ClearView). The information is general in nature, it does not take into account your objectives, financial situation or needs. Before determining whether to apply for or hold the product(s) you should read the appropriate Product Disclosure Statement (PDS) and consider the appropriateness of the product(s) to your circumstances. This information does not in any way constitute tax, legal or health advice. Before relying on this information, you should seek independent expert advice. To the extent that law permits, ClearView, its directors, officers and employees do not make any representation as to the accuracy of any non-ClearView websites or articles referenced and excludes any liability to any person in relation to the document’s use or its content, including any modification, error or omission in the document however caused.
This document is current as at the date of publication. ClearView can vary or withdraw this document at any time. You should always check with ClearView to confirm that this document is up to date.
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