Life Insurance

Life insurance is not something many of us want to think about. After all, we tend to associate it with bad things happening to us.

But if someone you love depends on you financially, life insurance is something you ought to consider.

You probably know life cover insures you if you pass away. But did you know you can also get cover for illnesses and injuries that leave you unable to work and earn an income?

If tragedy strikes, a life insurance payout can protect you and your loved ones, allowing you to stay in the family home and maintain your standard of living. It can help:

  • pay off outstanding debts, like the mortgage
  • cover daily living expenses
  • finance future needs, like your children’s education
  • protect your partner’s retirement plans
  • pay for funeral costs.

Get more with Budget Direct

  • Financial strength

    Our life insurance is backed and underwritten by Hannover Re Group, the world’s third largest reinsurer, with a financial-strength rating of AA- “Very Strong” (Standard and Poor’s).

  • Highly rated

    One of Australia’s top-5 direct life insurers with respect to price and features, based on an independent review of 69 companies by Plan for Life in 2015.

  • Easy to apply

    We’ll ask you a handful of questions about your health, occupation and lifestyle – you won’t have to fill out complicated forms or have a medical exam or blood test.

  • Funeral advance

    An advance payment of up to $10,000 to help pay for funeral costs and other expenses while we process your life cover claim.

  • Flexible payment options

    Pay annually, monthly or fortnightly – you won’t be charged extra.

Choose your cover

Income Protection Cover

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

  • Monthly benefit of up to 75% of your gross income (capped at $10,000 per month)
  • Choose a 1-, 2- or 5-year benefit period
  • No premiums payable while you claim
  • Guaranteed cover until the age of 65, regardless of changes in your health or occupation

Read more about Income Protection Cover ›

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.

  • Lump sum benefit of up to $1,000,000 (depending on age)
  • Advance payment of up to $10,000 to help cover funeral costs and other expenses
  • Cover automatically increased each year to keep pace with rising living costs
  • Guaranteed cover until the age of 100, regardless of changes in your health or occupation

Read more about Life Cover ›

Add 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.

  • Lump sum benefit of up to $1,000,000 (depending on age)
  • Insures you against physical and mental incapacity
  • Cover automatically increased each year to keep pace with rising living costs
  • Guaranteed cover until the age of 65, regardless of changes in your health or occupation

Read more about Total and Permanent Disability (TPD) Cover ›

Add Trauma Cover

Trauma insurance 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.

  • Lump sum benefit of up to $500,000 (depending on age)
  • Benefit paid regardless of your ability to eventually return to work
  • Cover automatically increased each year to keep pace with rising living costs
  • Guaranteed cover until the age of 65, regardless of changes in your health or occupation

Read more about Trauma Cover ›

Add 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.

  • Lump sum benefit of up to $50,000
  • Cover for death, terminal illness, and 14 other specified illnesses and injuries
  • Cover automatically increased each year to keep pace with rising living costs
  • Guaranteed cover until your child’s 21st birthday, regardless of changes in his or her health

Read more about Children’s Cover ›

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.)

  • Lump sum benefit of up to $500,000
  • Benefit amount not subject to age
  • Cover automatically increased each year to keep pace with rising living costs
  • Guaranteed cover until the age of 75, regardless of changes in your health or occupation

Not sure what cover you might need?

Compare life insurance

What’s not covered

There are some circumstances that are not covered by life insurance - these are called ‘exclusions’.

For example, a policyholder will not be covered 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 specifically exclude the event or condition – listed on their policy schedule – that led to the claim.
  • For our full list of exclusions, please see the PDS.

Find out more

For more details about life insurance, including the terms, conditions, limits and exclusions that apply, please read the product disclosure statement.

Get a quote

You can get a life insurance quote online in 60 seconds – you won’t need to fill out complicated forms or have a medical check-up or blood test.

We’ll ask you a handful of questions about, among other things, your health, occupation and lifestyle. This will enable us to determine whether we’re able to offer you cover.

Or, if you’d prefer, you can get a quote by calling us on 1800 555 048.

Get a Quote

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

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 life insurance cover do I need?

It’s up to you to decide how much cover you need, up to the maximum benefit allowable. 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 could be sold or accessed in the event of a calamity (e.g. investment properties, savings, superannuation, shares). Use our life insurance calculator to get an indication of how much cover you need.

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

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 may be exempt from capital gains tax. For more information, speak to an accountant or tax agent.

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.

Are there any waiting periods?

Yes – there are waiting periods for:

  • Trauma, Trauma Plus and Children’s cover: You can only claim for specified illnesses and injuries that occur or become apparent more than 90 days after your application for insurance is accepted;
  • Income Protection Cover: Your nominated waiting period of either 30 or 60 days will apply.

See all life insurance FAQs

Life stages

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

  • Young singles

    Keep your savings and debt repayments on track, even if you get sick or injured.
    Read more

  • Young couples

    Protect your double-income-no-kids lifestyle as you and your partner work towards your financial goals.
    Read more

  • Young families

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

  • Mature families

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

  • Empty nesters

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

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Get a 10% Existing Customer Discount

A 10% existing customer discount for new Budget Direct Life Insurance policies.

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