Can you afford Life Insurance & are you overestimating?

Rob Scott, Coles finance director, says offering life insurance was a natural progression for the company.

Of those consumers who do have life insurance, Coles claims that two thirds of current policy-holders are unsure about how much they’re actually covered for, leading to a significant risk of under-insurance. ABS statistics estimate the level of under-insurance of the lives of employed Australian families to be approximately $800 billion.
So how does the Coles life insurance offering stack up on price? According to the average direct life insurance prices surveyed for Canstar’s 2013 star ratings report, Coles is price competitive, as follows:


Indicative quotes for $500,000 of cover

Person Average monthly premium on Canstar database Coles monthly premium
30 year old male, non-smoker $47 $42
30 year-old male, smoker $77 $85
50 year-old male, non-smoker $139 $123
50 year-old male, smoker $286 $264
30 year-old female, non-smoker $36 $30
30 year-old female, smoker $58 $45
50 year-old female, non-smoker $115 $103
50 year-old female, smoker $206 $170

Rounded to the nearest dollar. Based on Canstar’s 2013 Direct Life Insurance star ratings. Coles quotes based on its online quoting system. Quotes above are for a stepped premium, general only and do not take into account any potential loadings for medical or lifestyle conditions. Premiums also do not take account of any discounts that may apply. Consumers should obtain their own quotes to match their personal situation.

Price isn’t the most important life insurance factor

Product features and benefits are also important. As an indication, Canstar’s annual direct life insurance star ratings also look for:

Financial planning

Does the insurance provider make financial planning advice available for clients and if so what is the cost for the service?

Funeral benefit

An important and sometimes-forgotten feature is the availability of a funeral benefit. The payment of insurance policies can take some time to process, so being able to quickly access funding for repatriation if required and funeral costs can be very useful.

Guaranteed future insurability

This allows clients to increase their amount of cover at a future point in time without having to provide additional medical evidence and is a useful feature to ensure that consumers can match their amount of cover with their changing lifestyle needs.

Trauma & TPD

Does an insurer allow Trauma and Total & Permanent Disability insurance cover to be attached to the life insurance policy?

Terminal illness

Does the insurer pay out the life insurance sum insured upon diagnosis of a terminal illness? This can be a very useful feature to enable the insured person to put succession planning in place.

Premium waiver

Some policies will also waive premiums during an insured’s period of illness or injury.

To check which direct life insurance policies offer outstanding value for money across different life stages, view our Star Ratings report.

If you’re comparing life insurance policies, the comparison table below displays some of the policies currently available on Canstar’s database for a 30-39 year old non-smoking male working in a professional occupation. Please note the table is sorted by Star Rating (highest to lowest) followed by provider name (alphabetical) and features links direct to the provider’s website. Use Canstar’s life insurance comparison selector to view a wider range of policies.

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