Life Insurance Australia For 2019

By Suzan K Last updated May 4, 2019

In this article, we will discuss life insurance in Australia. So, let’s begin!
Australia is the largest country in Oceania. It had a population of 2.46 crores as of 2017. The currency used in Australia is Australian Dollars. A country with so much population has also a huge need for insurance. People need various kinds of insurance for their needs.

The Australian insurance market can be roughly categorised into three parts. Health insurance, Life Insurance and General Insurance. The insurance providers are helping people bridge the gaps in their lives. In a normal case, a person would have been roaming here and there to get a loan for things like a funeral, accidents, etc. But the insurance providers have solved these concerns.
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Australia Post, Coles, Woolworths, etc are some companies in Australia that present themselves as insurance providers. But the truth is that they sell insurance from other companies.

Insurance Australia Group (IAG) with 29% of the market, Suncorp Group with 27%, QBE with 10%, Allianz with 8% account for three-quarters of the total General Insurance in the whole country.
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A thing that separates Australian Insurance Providers from the others is that they do not generally pay a lump sum amount. This is very different from other countries. Generally, in other countries, the lump sum amount can come easily unlike Australia.

As a matter of fact, the market of life insurance in Australia itself is as huge as $44 billion! That’s a lot of amount and profit for these companies. So let’s get to the next part!

Life Insurance Companies in Australia

As of 30th of June 2018, there are around 30 life insurance companies in Australia. These companies need to get registered in records. Every life insurance company has to get registered in the Life Insurance Act in Australia. The Australian Prudential Regulation Authority (APRA) regulates and monitors the activities of these countries.
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These are the top 10 largest companies in Australia which account for total 95% insurance market in Australia.

TAL Life (17.8%)
AIA Australia (15.6%)
MLC Life (11.7%)
AMP Life
OnePath Life (10.0%)
CommInsure trading name for The Colonial Mutual Life Assurance Society (7.9%)
Westpac Life including BT Life (7.8%)
Suncorp Life including Asteron Life (5.0%)
MetLife Insurance (4.5%)
Zurich Australia (4.2%)

What is Insurance?

Insurance is an agreement between a person and an insurance provider. The agreement states that the insurance provider will pay the insured person after the accident. A person needed to pay the premium of the policy.Premium payment options include either quarterly or monthly. Other than quarterly and monthly more options are also available. But still, people prefer the quarterly premium or monthly premium because it’s convenient.

The insurer is the name of the insurance provider. The person covered in the policy is termed as insured.
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The procedure of Life Insurance in Australia

After a death, the claim should file with the insurer. Them, the insurer verifies the claim. Compensation’s given only if documents found are true.
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Claim Rate in Australia

All policies in Australia provide claim rates to the public. The number of times a claim processed successfully is claim rate. So, this means that the higher is the claim rate for life insurance in Australia the better is the policy.
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Life Insurance Policy Types

Income Protection Insurance – As the name suggests, Income Protection Insurance will provide you income as an alternative for your normal work. This policy is very useful if you work in a high-risk job. For example, if something falls on you then while you are recovering, this insurance will provide you with the financial resources. This also covers 75% of your income. The premium rate for this depends on your income classification.
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Total And Permanent Disability Insurance – This insurance provides you with a lump-sum amount in case you suffer from any permanent damage in future. This is applicable only if the injury prevents you from working again. It’s available as an add-on or a separate policy itself.
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Trauma Insurance – Critical Insurance is another name for this. It provides the medical treatment costs if you suffer from an illness where your policy does not cover by normal private health insurance. So, if you would suffer from any listed illness in the insurer database then you would get compensation for medical treatment. It’s available as an add-on package for your policy too. Some most common claims of trauma insurance come from Cancer, Coronary Artery Surgery, etc.
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Business Expenses Insurance – This insurance helps business owners to insure the ongoing costs of the business. It provides compensation for this if you get seriously ill which might affect your business. This ensures that the business is financially maintained properly while the business owner recovers.
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What Affects your Life Insurance Quotes?

Your life insurance quotes can be affected by your occupation, medical history, and your income, etc. All this information is obtained by the insurance company when you fill the form. Then, these details are analysed and assessed to provide you with an insurance quote.
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Conclusion

So, as you saw in this article. We have discussed Life Insurance in Australia. Life insurance is a very good thing that you should have. It’s basically an integral part of your life. Life insurance ensures that your family or other people do not have to suffer when you are not with them.
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These days no one can say when one might encounter a life-threatening event. If anything happens to you then the whole family will suffer. You will definitely not want to add up to their stress with financial problems.