A quick summary for those in a hurry
When the topic of life insurance comes up, have you found yourself saying “I’m young, mortgage and child free. So, I don’t need life insurance.” Or “My insurance inside super gives me enough cover, so I don’t need more.” Or even “It’ll be hard to get a claim paid because insurers make it difficult”. Then you might be like thousands of Australians who are letting myths stop them getting the protection they need. Zurich is determined to bust all these myths. It’s important because, without the right cover, unexpected events can have a devastating effect on you, your lifestyle, and your loved ones. With a little help from Zurich, you can be covered when you need it most.
Myths about life insurance usually start with a grain of truth – an outdated rule of thumb or a story from a friend’s story. They spread because simple explanations (even if they’re wrong) are easy to remember and repeat. Over time, those myths can sound like facts – even if they’re outdated or inaccurate.
So, let’s address the 6 main misunderstandings about life insurance. To sort the fact from the fiction. If you’ve ever found yourself making any of these statements, then you could be missing out on important protection.
Myth #1: “I’m young, mortgage and child free. So, I don’t need life insurance.”
It’s an important question many Australians are asking: If you couldn’t earn an income, how would you manage day-to-day expenses? Rent, food, transport? Or the costs of adapting to life with a disability? Adding ramps and railings? Obviously, your individual circumstances affect your answer.
Life insurance isn’t only about paying debts or supporting dependants. It also helps protect your independence if you become ill or disabled and can’t work.
Myth #2 “My super gives me enough cover, so I don’t need more.”
Insurance through super is often a great starting point. But unless you have reviewed and amended your cover, your level of cover is usually set at the default level and may not match your needs. in 2020 reported default cover only meets 65%–70% of average household needs.1 And it’s even lower for families with children.
It’s worth double-checking. What do you have? What is it costing? If you’re not sure, speak to a financial adviser about the level of cover you need.
Life insurance is like a superhero taking care of my family. It will protect them from financial hardship when I’m no longer around.”
Myth #3: “It’ll be hard to get a claim paid because insurers make it difficult”
In 2025, Zurich paid 9 out of 10 claims2 in full. That was over $1.3 billion in claims paid2 to help 8,479 Zurich customers and their families. Remember, to Zurich, paying claims is not seen as a cost. We are simply paying the amount people are entitled to.
So, as long as you took reasonable care not to misrepresent information on your application form, and your claim meets the term of your policy, your claim will be assessed fairly.
Myth #4: “I’ll get stuck paying for cover I don’t need.”
Life insurance is designed to be flexible. You may be able to adjust cover as life changes (subject to policy terms). For example you could:
- Increase your cover when you take on a mortgage or have children
- Reduce your cover when the mortgage is repaid or children leave home.
A financial adviser can help align cover to your circumstances so you’re not paying for protection you don’t need.
It’s about protecting dreams. Keeping the home we built. Funding future ambitions. And ensuring that life goes on smoothly.”
Myth #5: “There are lots of invasive medical tests involved to get approved.”
Some policies sold through advisers don’t require upfront tests. If you do need a medical test, it’s often a simple blood test and an examination by a Doctor. Importantly, this is to ensure your cover reflects your health and medical history. It’s only if you have an existing condition, you may need to provide more information. If it’s a really serious pre-existing condition you may not be covered.
Myth #6: “My cover won’t adapt with my changing health.”
Provided you declare any pre-existing conditions, what you're cover for at the start of your policy generally doesn't change if your health changes.
My father passed away when I was 10 and made it very difficult for my mother. I don’t want that for my family.”
Now you have the facts, let’s get you properly covered.
Life insurance is not a one-size-fits-all purchase. You really can tailor your policy to your specific needs. Popular policy types from Zurich include:
- Income Protection: regular payments if you can’t work due to illness or injury – can cover up to 70% of your pre-disability income (subject to policy terms) after agreed waiting period up to your selected benefit period.
- Total & Permanent Disability (TPD): a lump sum if you become totally and permanently disabled as defined by your policy.
- Trauma Cover: a one-off payment to help with the financial impact of covered conditions like cancer, heart attack or stroke.
There are two ways to get covered:
- Buy through a financial adviser
The right financial adviser will help you understand your current situation and future goals. They can then structure cover to suit your needs, cash flow and even your tax objectives. - Buy direct from Zurich
If you already know the type and amount of cover you need, Zurich offers simple life insurance products online. Click here to request an online quote.
This information does not take into account your personal objectives, financial situation or needs. You should consider these factors and the appropriateness of the information to you. Consider seeking advice specific to your individual circumstances from an appropriate professional.
1. Rice Warner, New research shows a larger underinsurance gap, 2020
2. Zurich retail life claims paid 2025, Zurich claims report 2025
This article has been prepared by Zurich Australia Limited ABN 92 000 010 195, AFSL 232510. This information is current as at 11 August 2026 and may be subject to change. You should consider the Product Disclosure Statement (PDS) for the product and any applicable Target Market Determination (TMD) available zurich.com.au/life-insurance/documents or by calling 1800 394 268 in deciding whether to acquire or to continue to hold the product.
