Term Life Insurance

Term life insurance, often called temporary life insurance, is the predominant form of life cover in the Australian market. Unlike whole of life insurance, term policies provide coverage for a specific period - either a set number of years or until you reach a predetermined age (commonly 65 or 70). Premiums typically increase annually based on your increasing age and risk profile, following what's known as 'stepped' premium structure, though some policies offer 'level' premiums that remain constant for a set period. Term life insurance offers exceptional flexibility, allowing you to increase or decrease your sum insured as your circumstances change (subject to underwriting for increases). This makes it ideal for protecting specific financial obligations that reduce over time, such as mortgages or dependent children's expenses. Most term policies in Australia include automatic acceptance of indexation to protect against inflation, and may be convertible to permanent insurance without new medical evidence. Coverage can be held within superannuation (often automatically included in default super funds) or purchased as a retail policy outside super. The cost-effectiveness of term insurance makes it accessible to most Australians, with policies available from as little as $20-30 per month for younger, healthier individuals.