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Discover the industry
The idea that Australians should be able to safeguard themselves throughout their lifetime has roots as far back as the goldrush. The people exposed to dangerous work on the goldfields more than 170 years ago wanted protection for their families.
Life insurers have answered the call ever since. Today, millions of Australians rely on life insurance for peace of mind as they face life’s biggest decisions and challenges. Whether you’re having a baby, taking out a mortgage, starting a business or planning for retirement, we’re here for you. The life insurance industry is central to the financial well-being and resilience of Australians and the broader community. It provides jobs, protects families and contributes to the national economy.
What is life insurance?
We’re woven into Australia’s safety net
Life insurance plays a critical role in ensuring Australians can maintain their lifestyle, without having to draw down on their retirement and other savings when faced with illness, injury, disability or death.
Life insurance includes various types of insurance products designed to give you and your loved ones peace of mind and financial security in the event of your retirement, death, injury or major illness. Life insurance products may provide a lump sum payment or a regular income to help you and your family cover ongoing expenses such as living costs, mortgage payments, funeral costs and medical expenses.
Impact of the industry
Australians covered by life insurance
in assets are held by life insurers with
of investments, largely in Australian debt and equities
of finalised claims were paid by life insurers last year
Australians employed by life insurance
in life insurance claims were paid to
Australians or their loved ones over the past year
Common types of products
Learn more about the common types of life insurance products that CALI members provide. Some life insurers offer other kinds of risk protection products, including consumer credit insurance, funeral cover and accident and sickness insurance.
Death insurance
Death insurance pays a lump sum benefit to your loved ones when you die or are diagnosed with a terminal illness.
Total and Permanent Disability
Income protection
Trauma crisis recovery
Business expenses insurance
Annuities and investment life products
Annuities help give peace of mind in retirement by providing a guaranteed regular income or lump sum payment. Investment life products help Australians to save for major life events and provide lump sum or regular payment.
How do people access life insurance cover?
There are three main sources of life insurance products and advice for consumers. Opportunities exist to expand the availability of personal advice for consumers seeking support and guidance on life insurance needs.
Financial advisers
- Financial advisers provide bespoke life insurance advice.
- These policies are typically individual policies that are underwritten and tailored to the customer.
- There are around 16,000 registered financial advisers in Australia.
- Only 1,100 focus primarily on writing life risk insurance.
Superannuation trustees
Super funds provide:
- a level of default cover set by trustee that does not require individual underwriting.
- the option to apply to top up with voluntary cover that is typically underwritten.
- 86% of all super accounts with insurance have the default cover.
Life insurers
- Products can be bought directly from an insurer or distributor.
- Current financial advice laws make it difficult for life insurers to assist consumers with personal information and advice.
- 51% of Australians believe life insurance advice would be more accessible and affordable if life insurers were able to provide limited advice.
Customer guides & fact sheets
The life insurance industry has developed customer guides to help you understand life insurance products including how you pay for your policy, the consumer protections in place, your rights and responsibilities, and how you can make a claim, a complaint or cancel your policy.
Life Insurance Code of Practice
The life insurance industry has voluntarily developed the Life Insurance Code of Practice (Life Code) to protect Australian customers.
The Life Code establishes important standards which life insurers must comply with to guarantee that customers can confidently purchase life insurance, knowing that their life insurer will provide assistance when needed.
The Life Code encompasses all aspects of life insurance, including how products are designed, how they are sold, timeframes to communicate decisions with customers, the claims process and how complaints resolved. It includes additional commitments made by participating life insurers to consumers, going beyond what is legally mandated and has important protections for customers who are vulnerable, require financial assistance or who experience a mental health condition.