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Life Insurance

Myths about life insurance

2023-06-30 04:30

Busting common myths about life insurance.

1. I'm too young for insurance!

You may not have a family or a mortgage to look after yet – but you still need to look after yourself. If you were to lose your regular income, how will you manage financially? You might not be able to afford your current lifestyle or manage debts like student loans or car repayments without a regular income. It could even mean moving back in with the folks.

If sickness or injuries mean you can't work, income protection insurance can help with regular payments – helping you keep up with your rent, mortgage or everyday living costs. Having protection plans in place can help increase your sense of Financial Wellbeing, knowing that if something were to happen you have a backup plan in place.

2. Life insurance is too expensive - and it's difficult to apply.

Life insurance can be surprisingly affordable – with cover from around a few dollars a day, depending on your age and the type and level of cover you choose. Depending on the provider, you can choose from a range of cover starting at a $50,000 lump sum payment up to $1.5 million. By choosing a smaller benefit amount, you can pay less in premiums.

And the good news is, life insurance can also be easy to get. You can even do it yourself online or by phone and get a personalised quote in minutes. In some cases you won't even need medicals or blood tests to apply. Life insurance is a small price to pay to help secure your financial future, and take care of the people who depend on you.

3. I've got insurance through my super.

You may have some insurance through your super, but often it can be less than you really need – particularly if you have a mortgage or a family. The amount of cover in super fund is a 'one size fits all' approach – it doesn't take into consideration your financial needs and how much cover you would actually need.  And while you may be covered if you pass away, you may not have income protection to cover a short-term setback.

That's why it can be a good idea to review your current levels of cover in your super, check that amount against your financial commitments like your mortgage, school fees for the kids and other debts and note the difference. Add these responsibilities up as a starting point for how much cover you may need here. Then consider topping up your insurance outside of super – so you won't be caught short if you need to claim.

4. Between worker's comp and sick leave, I should be covered.

Worker's compensation can pay you a benefit only if you're hurt while you're working – but what would happen if you were injured over the weekend, after work, or when you're on leave?  Worker's compensation won't cover you in these instances.

Australians are generally entitled to two weeks of sick leave per year, but if you suffer a major injury or illness you can be out of work for longer than a fortnight.  After your sick leave runs out, you could be left without an income, making it hard to cover your expenses and debts. But, in most cases, life and income insurance will cover you 24 hours a day – both at work and at play.

5. If something happens to me, the government will look after us.

Government benefits can pay far less then you expect, making it difficult to maintain your lifestyle, pay your mortgage and look after your family. For example, in 2023, the disability pension was a maximum of $971.50 a fortnight for a single person aged 21 or over (with or without children)disclaimer – could you afford to live on this? With life and income insurance, you can set the amount you receive, helping ensure you'll have enough to get by.

Myths about life insurance

Discover more about life insurance

Insurance can help protect you and your loved ones from the unexpected. We've partnered with Zurich Australia – one of Australia's largest and most experienced life insurers – to help you take care of yourself and the ones who rely on you.

Read more 


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This information is current as at date of publication and is subject to change.

The issuer of this information is ANZ. While ANZ has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any responsibility or liability arising from your use of this information.

ANZ has entered into a long-term strategic alliance agreement with Zurich Australia Limited (Zurich), ABN 92 000 010 195, AFSL 232510 of 118 Mount Street, North Sydney, NSW 2060, the issuer of Ezicover insurance products. Ezicover is a registered trademark of Zurich. The issuer of Ezicover insurance products is not a Bank. Although ANZ distributes these products, these products are not a deposit or other liability of ANZ or its related group companies. 

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 AFSL 234527 is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). The issuers of these products are not Banks. Although ANZ distributes these products, these products are not a deposit or other liability of ANZ or its related group companies. None of them stands behind or guarantees the issuers or the products. 

This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. You should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. 

Based on a single person, aged 21 or over, with or without children. Source: