What are the different types of Life Insurance?

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Life insurance is intended to supply a source of income for your family (typically your children or dependant’s), in the event of your unexpected death or if you become disabled.

Life insurance policies typically pay a lump sum to the beneficiaries, which can help your children or dependents to continue paying for important financial commitments, including:

  • Mortgage or Rent
  • Car loans or vehicle leases
  • Funeral and estate-related expenses.
  • Children Education fees
  • Daily living expenses and expenses
  • Outstanding bills.

Losing a loved one or seeing them endure illness is upsetting enough without adding the burden of financial stress on your life. Always ensure you are dealing with an accredited APRA life insurance provider. 

Types of Life Insurance

  • Life cover: also known as ‘term life insurance’
  • Trauma cover
  • Total & permanent disability (TPD)
  • Income protection 

Life Insurance Cover types details:

Life cover is often called “term insurance” or “death cover”. Life cover is a replacement benefit paid to your spouse and dependents. The policy payment is given as a pre-agreed lump sum at the given time of death of the insured party.

Trauma cover. Trauma cover provides protection for major illnesses, such as stroke, heart attack, cancer or other major illness. The benefit is paid as a lump sum to the policyholder to meet medical costs and continuing recovery and rehabilitation expenses.

Total & permanent disability (TPD). This type of life insurance covers you for permanent loss of work, which was to a severe injury or illness. It is typically paid as a lump sum amount to the policyholder.

Income protection. This cover provides a percentage of your regular work income (up to 75 per cent), due to illness or injury for an agreed time frame. Income protection insurance is different from other types of life insurance protection, as its income paid in regular monthly installments.

In Australia, all life insurance policies must comply with the Australian Prudential Regulation Authority (APRA)

Life insurance is different for everyone. Choosing the right type of life insurance cover varies on your own personal circumstances, and is based on your wage or income, your family situation, age and health. To calculate how much insurance cover you may need, please use the Life Insurance Calculator. 

Life insurance is intended to supply a source of income for your family (typically your children or dependants), in the event of your unexpected death or if you become disabled.


Life insurance policies typically pay a lump sum to the beneficiaries, which can help your children or dependents to continue paying for important financial commitments, including:

  • Mortgage or Rent
  • Car loans or vehicle leases
  • Funeral and estate-related expenses.
  • Children Education fees
  • Daily living expenses and expenses
  • Outstanding bills.

Losing a loved one or seeing them endure illness is upsetting enough without adding the burden of financial stress on your life.