Life Insurance Comparison with Other Insurance Types

This article is an extract from ClearView.

We all understand the importance of insuring our homes and cars to protect these valuable assets. However, many people overlook something even more valuable – their own lives and their ability to earn an income.

Protecting these aspects ensures not just financial security but peace of mind for you and your loved ones.

Life insurance provides financial security for you and your loved ones, helping you prepare for life’s unexpected challenges. This snapshot shows, at a high level, how life insurance compares to other types of insurance and underscores its importance in creating a complete safety net.

Below is a comparison highlighting the types of insurance coverage available.

Insurance Type	What It Covers	Average Premium Rates (Approximate only)	Average Claim (Approximate only)	Take-up rate
Life1	Provides a lump sum payment to your beneficiaries in the event of your death or terminal illness. This financial support helps your loved ones manage financial responsibilities, such as mortgage repayments, funeral costs, debts, and/or everyday living expenses.	$40 per month*	$100,000 to $500,000 lump sum	60%1
Total and Permanent Disability (TPD)2	Provides a lump sum if you become totally and permanently disabled and are unable to work due to disability.	$20 per month*	$100,000 lump sum (Range $100,000 to $2m)	20%2
Trauma3	Provides a lump sum upon diagnoses of specified critical illnesses such as cancer, heart attack, or stroke, which can help with recovery costs.	$20 per month*	$100,000 lump sum (Range $100,000 to $2m)	20%3
Income Protection4	Replaces a portion of your income if you’re unable to work due to illness or injury.	$77 per month*	$150,000 lump sum Average policy $3,000 per month benefit	20%4
Health5	Covers medical costs including hospital stays, surgeries, and other healthcare expenses not fully covered by Medicare.	$166 to $251.45 per month	$2,500 average claim per hospital admission	53%5
Motor Vehicle6	Protects against costs related to vehicle damage, theft, or accidents.	$147 to $160 per month	$1,000 to $10,000 Comprehensive car insurance	80%6
Contents7	Covers damage or loss of personal belongings within your home due to theft, fire, or other risks.	$85 to $308 per month	$1,000 to $10,000 Combined home and contents insurance	70%7

* Life insurance coverage typically offered for a male, non-smoker, in his 30s. ClearView Quote: Male, 39yo, Non-Smoker, Retail / Non-Super, Income of $120K, AA Rates
^# Average prices quoted. Prices vary dependent on location.

Understanding these various insurance types underscores the value life insurance offers in safeguarding not just assets, but the very livelihood and well-being of individuals and their families. For a clearer understanding of your options, consult a licensed financial adviser who can help tailor solutions to your unique circumstances.

Unsure if you have the right cover in place? Our Financial Planning Team can review your protection strategy and help tailor it to your needs. Reach out for a complimentary initial chat here.

References:

1. How Much Does Life Insurance Cost? Canstar, Jun 2024; Cost of life insurance in Australia. Finder, November 2024; Life Insurance Claims Statistics – All the facts and figures. Insurance Watch, 2024.

2. Disability Insurance. Life Sherpa; Understanding TPD Insurance Costs in Australia: How Much Do You Really Need? Aspect Underwriting; Total and permanent disability (TPD) insurance. MoneySmart; TPD Payout Calculator for TPD Claims. Aussie Injury Lawyers, 2025.

3. How much does trauma insurance cost? Finder, April 2024.

4. Cost of income protection in Australia. Finder, November 2024; How much does income protection insurance cost? Canstar, December 2021.

5. How much does private health insurance cost? Canstar, February 2025; 19 Health Insurance Statistics and Facts in Australia [2024] Take a Tumble, February 2024; Health Insurance Statistics in Australia 2025. Money.com.au, March 2025.

6. How much does car insurance cost? Canstar, March 2025; Average car insurance cost and statistics in Australia. Money.com.au, January 2025

7. How much does home insurance cost in Australia? Finder, October 2024; Home Insurance Cost: How much is home and contents insurance? Canstar, November 2024; How Much Is Home And Contents Insurance In Australia? Forbes, November 2024