Term life insurance provides death and terminal illness coverage for a specified period or until a certain age, typically with annually increasing premiums. It's the most common and affordable type of life insurance in Australia, offering flexibility to adjust coverage as your needs change.
Term life insurance covers you for a defined period, either a set number of years or until a chosen age (commonly 65 or 70). It is the predominant form of life cover in the Australian market.
Unlike whole-of-life insurance, the policy ends when the term expires unless you renew or convert it.
Term life insurance is offered with two main premium types:
Most Australian term policies allow you to adjust the cover as your circumstances change:
This flexibility makes term cover well suited to obligations that reduce over time, such as a mortgage or dependant children's expenses.
Cover can be held:
The cost-effectiveness of term insurance makes it accessible to most Australians, with policies available from as little as $20 to $30 per month for younger, healthier individuals.
David, 30, purchases a $500,000 term life policy with 30-year coverage to match his mortgage term. His initial premium is $35/month, gradually increasing as he ages, but the coverage reduces his family's financial risk
Emma, 45, has a $300,000 term policy through her super fund that automatically increases by 3% annually for inflation, ensuring her coverage keeps pace with cost of living increases
Robert, 55, converts his term life insurance to a whole of life policy without medical underwriting, locking in permanent coverage for his estate planning needs
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