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Life Insurance

29 Jun 2020

Understanding Life Insurance

In a survey of more than 4000 Australians, we found only 32% of people have life insurance1. We take a look at what life insurance is and why you might need it.

What is life insurance?

When you buy life insurance, you make a payment (called a premium) for an amount of cover. If you pass away the benefit amount can be paid to your family or dependants (your beneficiaries), or if you are diagnosed with a terminal illness the benefit amount can be paid to you.

Why do I need life insurance?

Having life insurance can give you peace of mind, knowing if you weren't around, the important people in your life would be able to manage a little better. There are no restrictions on how the money can be used - it can help pay the rent or mortgage,  pay for childcare, pay the bills or it can be used to pay for your children’s education. 

Even if you’re young and healthy it's still worth considering life insurance. Applying for life insurance when you're younger could mean you are eligible for the higher benefit amounts.



How much life insurance do I need?

When you consider how much life insurance you want, it’s good to make sure you have the right amount of cover. A life insurance calculator like the one provided by ASIC Moneysmart can help you work out how much life insurance you might need.

Choosing the right life insurance policy

Choosing to buy life insurance can help prepare you for the unexpected, but it’s important to understand what’s covered and just as importantly, what’s not covered.

What does Woolworths Life Insurance cover?

Woolworths Life Insurance provides a lump sum payment if you pass away. We can also provide the payment if you are diagnosed with a terminal illness and have less than 12 months to live.

If you take out Total and Permanent Disability cover as an optional extra you can receive a lump sum payment if you are unable to work again.

Who we cover What you are covered for What you are not covered for
Australian residents aged:

Cover for death and terminal illness. Up to:

Suicide or self-harm is not covered for the first 13 months of the Policy.

We will not pay any benefits where we have agreed with you a special term in respect of your cover that specifically excludes the event or condition leading to the claim. Any such special provision will appear on your policy schedule.

Exclusions apply, please see PDS for details.

$1.5 million
Optional Cover - Total & Permanent Disability Insurance*
Australian residents working for at least 20 hours per week, aged:

Up to:
$1 million
Australian residents working in domestic duties full time, aged:
Up to:

What does Woolworths Life Insurance not cover?

An expired Policy

A Woolworths Life Insurance policy is active as long as the premiums are paid. If you stop paying premiums your policy will expire and you will not be covered.


If you have not answered something on application accurately, a claim on your life insurance could be denied.


There are exclusions in the policy and there also may be exclusions specific to you. If this is the case we won’t pay a claim related to them.

Is there a cooling off period?

To make sure you’re happy with your policy, you’ll have 30 days from the start date to cancel. If you cancel within 30 days, we’ll refund any premiums you’ve paid since the policy commenced if you have not made a claim.

Why pick Woolworths Life Insurance?

Easy to apply

Buy Life Insurance online. No medicals or blood tests needed. Please call us for a Funeral Insurance policy or for Life Insurance with the Total & Permanent disability cover option

Affordable Life
Insurance premiums

Everyday Rewards members get 10% off for the life of the policy+, so cover can start as low as $2.80 a week**  

Freedom to
change your mind

30 day cooling off period - cancel your policy within this time frame and as long as you haven't made a claim, we'll refund your premium


Thinking about life insurance?

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1 Online survey of 4,306 Australian adults (ages 18+) conducted by Shadow Wolves in April 2019 on behalf of Woolworths Insurance.

** Premium based on $150,000 Life Insurance benefit for a female non-smoker aged 34. Premium payment options are monthly, fortnightly and annually.

+ You must be an Everyday Rewards member to receive a 10% discount on your Woolworths Life Insurance policy. Everyday Rewards Membership is subject to the Everyday Rewards Terms and Conditions available at

# Depending on your answers to the health and lifestyle questions, you may be required to speak with a sales agent to clarify your situation.

This is general advice only and does not take into account your objectives, financial situation or needs. Before acting on advice, consider whether it is appropriate for you. Before you purchase this product you should carefully read the Financial Services Guide, Product Disclosure Statement and Target Market Determination to decide if it is right for you. Benefits are subject to the terms and conditions including the limits and exclusions of the insurance policy. The Life insurer, Swiss Re Life & Health Australia Limited ABN 74 000 218 306 AFSL 324908 has adopted the Life Insurance Code of Practice (the Code). The Code is the life insurance industry’s commitment to mandatory customer service standards and it’s designed to protect you, the customer. Click here for more information about the Code or visit