get more with Budget Direct Life Insurance

Easy to apply

We’ll ask you some questions about your health, occupation and lifestyle. No medicals or blood tests.

Secure cover

Your cover will renew annually, regardless of changes in your health, occupation or pastimes.

Inflation proof

To keep up with rising living costs, your cover will automatically increase each year by the CPI rate or 5% (whichever is the greater).

Financial strength

Backed by Hannover Re Group, the world’s 3rd largest reinsurer.

Choose your cover

Life insurance can help you not only if you pass away, but also if you’re unable to work due to illness or injury.

Life Cover
Income Protection Cover
Accidental Death Insurance
Compare Covers

Life Cover

Life Cover, also known as a ‘death benefit’, is the main type of life insurance. It can pay you or your beneficiaries a lump-sum benefit should you die or be diagnosed with a terminal illness that results in a life expectancy of less than 12 months.

Add to your Life Cover

While Life Cover protects your dependents against the financial consequences of your untimely death, there are other illnesses and injuries that are non-fatal but which could still cost you your livelihood.

For added peace of mind, you have the option of adding the following cover to your Life Cover policy:

Total and Permanent Disability (TPD) Cover

TPD insurance can pay you a benefit in case, as a result of serious sickness or injury, you lose your sight or the use of your limbs or are unable to work in any occupation for which you are reasonably suited by education, training or experience; or cannot live independently.

Trauma Cover

Trauma Cover can pay you a benefit in the event you suffer from one of four common ‘trauma events’ that force you to take extended time off work: cancer, coronary artery bypass surgery, heart attack or stroke. If you want to be covered for more ‘trauma events’, you can choose Trauma Plus.

Children’s Cover

Children’s Cover can pay you a benefit should your insured child die, be diagnosed with a terminal illness, or suffer a specified illness or injury. This benefit could allow you to take time off work to provide extra care and support for your child, for example.

Income Protection Cover

Income Protection Cover can pay you a monthly benefit if you suffer a serious injury or illness and cannot work. It means you can focus on getting better, without worrying about how you’re going to pay the bills.

Accidental Death Insurance

Accidental Death Insurance can pay a benefit should you suffer an accidental death. (If you also have Life Cover and die accidentally, your beneficiaries could receive two lump sum payments upon your death.)

Compare our Life Insurance

Budget Direct life insurance covers a wide range of unforeseeable events that can result in you getting seriously ill or injured or dying, leaving you unable to work and earn an income for a long time, if ever again.

The following table helps you compare the different types of life insurance cover we offer, so you can choose one or more to suit your needs and budget.

Benefit and features Life Cover Express Life Cover TPD Cover Trauma Cover Children’s Cover Accidental Death Insurance Income Protection Cover
Standalone Cover Yes Yes No No No Yes Yes
Add-on to Life Cover No No Yes Yes Yes No No
Covered For Death or terminal illness Death or terminal illness Total and permanent disability Specified serious illness or injury Death, terminal illness, or specified serious illness or injury Accidental death Serious illness or injury that prevents you from working
Minimum age (next birthday) at entry 18 18 18 18 2 18 19
Maximum age (next birthday) at entry 64 50 59 59 17 64 60
Benefit Amount $50,000 - $1,000,000 $50,000 - $300,000 $50,000 - $1,000,000 $25,000 - $500,000 $20,000 - $50,000 $50,000 - $500,000 Up to 75% of your income (capped at $10,000 per month)
Waiting period No No No 90 days 90 days* No 30 or 60 days‡
Guaranteed cover until your... 100th birthday 100th birthday 65th birthday 65th birthday Child's 21st birthday 75th birthday 65th birthday
Increase/decrease your cover (and premium) at any time† Yes Yes Yes Yes Yes Yes Yes
Inflation Protection Yes Yes Yes Yes Yes Yes Yes
Funeral Benefit Yes Yes No No No No No
Available to part-time workers and homemakers Yes Yes Yes Yes Yes Yes
Minimum 20 hours work per week
No medical or blood tests Yes Yes Yes Yes Yes Yes Yes
30-day cooling-off period Yes Yes Yes Yes Yes Yes Yes
Worldwide cover 24/7 Yes Yes Yes Yes Yes Yes Yes

*Waiting period applies only to specified serious illness or injury; death and terminal illness are covered immediately upon acceptance of your application.

† Increases are subject to your age and the benefit amount limits.
‡ During the waiting period, you must be unable to work due to your illness or injury. If a doctor confirms you’re still unable to work at the end of this time, we will pay you monthly benefits in arrears.


Find out more

The information on this page is a summary only. For more details about Budget Direct life insurance, including the terms, conditions, limits and exclusions that apply, please read the Product Disclosure Statement (PDS).

How to make a claim

We understand life insurance claims can be stressful, so we try to deal with each claim as quickly, efficiently and compassionately as we can. Make a claim on your life insurance policy.

How much life insurance cover do I need?

It’s up to you to decide how much cover you need.

Depending on your situation, you may want to cover things like your debts and your dependents’ daily living expenses, minus the value of any liquid assets – those that you’d be comfortable to sell in the event of a calamity (e.g. investment property, savings, shares).

Use our life insurance calculator to get an indication of how much cover you need.

Frequently asked questions

Why do I need life insurance?

Life insurance is a way to protect you, your partner and children from financial hardship in the event you pass away or become seriously ill or injured and cannot work. It can help you and your loved ones continue to pay bills like the mortgage or rent, groceries, transport, utilities and school fees.

How much cover can I get?

The maximum amount of life insurance cover you can apply for depends on the type of cover you want and your age. Read more

Why would I need TPD Cover and Trauma Cover?

If you have TPD Cover only, you won’t be insured if you suffer a trauma event like cancer or a stroke that doesn’t prevent you from returning to work. And if you have Trauma Cover only, you won’t be covered for musculoskeletal conditions and other events that leave you totally and permanently disabled but don’t meet the definition of a trauma event.

What’s not covered?

There are some circumstances in which we will not pay a life insurance claim – these are called ‘exclusions’.  For example, we will not pay a policyholder’s claim if:

  • he or she dies or has a terminal illness as a direct or indirect result of a self-inflicted injury within 13 months of their Life Cover commencing;
  • we have agreed to a term in their policy that specifically excludes the event or condition that led to the claim.
Are life insurance payouts free from capital gains tax?

It depends on who is listed as the beneficiary, and who actually receives the insurance payout. Provided it goes to the injured or ill party or one of their family members, the payout is typically exempt from capital gains tax. For more information, speak to an accountant or tax agent.

Life stages

We provide life insurance cover for Australians, whatever stage of your life you’re in, including:



Keep your savings and debt repayments on track, even if you get sick or injured.
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Protect your double-income-no-kids lifestyle as you and your partner work towards your financial goals.
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New Families

New Families

Guard against the unexpected as you take on more debt and the number of mouths to feed increases.
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Mature Families

Mature Families

Preserve your prosperity, even if your adult children are still at home and financially dependent on you.
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Empty Nesters

Empty Nesters

Make provisions for the future, including a spouse or partner who may outlive you by decades.
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Useful links

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