8 simple steps to help you find what’s ideal for you
A quick summary for those in a hurry
Australians are increasingly asking, “What’s the best policy?” but there simply isn’t a one-size-fits-all answer. What’s “best” must account for your goals, budget, health, work and dependants. Comparison and quote-sourcing sites are a good place to start but, ultimately, the most important factor is you. Choose a policy to cover your risks. Zurich has put together a step-by step guide – for no matter which company you choose. Key steps include checking insurer financial strength, matching cover types to life stage, prioritising value over price, calculating the right sum to insure, and assessing your available support.
It looks like a simple question: “What’s the best policy?” Unfortunately, there’s no simple answer. It really does depend on your goals, budget, health, work, and who relies on your income. Plus, it changes over time. So, what’s right for you now may not be right next year, the year after or ten years from now.
Zurich has produced a simple, step-by-step guide to help make sure your policy work for you. Look for a policy which:
- Covers the risks you genuinely need covered
- Pays what you expect if you meet the policy terms
- Can work for you in the long-term.
Here’s how to do it.
Step 1) Look for financial strength
Life insurance is a long-term purchase. So, focus on insurers with a track record, clear claims processes, and a reputation for paying legitimate claims fairly. If you’re working with a known, established insurer they will have a strong company culture and understand risk.
Zurich, for example, is a long-standing global insurer who over 1.5 million Australians and over 75 million people1 worldwide trust to protect them. That’s critical when it’s time to claim.
Step 2) Find policy options to match your real needs
When you see the term “Life insurance” it’s often used as a ‘catch all’ to include:
- Life cover: pays a lump sum on death or terminal illness
- Total and Permanent Disability (TPD): pays a lump sum if you are permanently disabled and unable to work again
- Trauma cover: pays a lump sum on diagnosis of a specific serious illness
- Income protection: replaces a portion of income if you can’t work for a period.
The best policy is the combination which best suits your needs right now. That will vary based on your life stage. For example, a young family has different needs to a couple approaching retirement, or a business owner.
3) Look for value, not just the cheapest premium
Premiums vary widely depending on your age, smoking status, occupation, and medical history. But features matter too. Different companies offer different built-in benefits.
Zurich has a complete package of rehabilitation options, subject to eligibility and the terms of your policy, designed to get you back to work quickly.
4) Trust your own experience
Ease of applying is often a telling indicator of what a company is like to deal with. You can see how you might feel if you had to make a claim. Have your interactions been smooth? Or has it felt like days of frustration?
5) Calculate the sum to insure, don’t guess
Common considerations include your mortgage, other debts, future education costs, ongoing living expenses, and income for dependants. The Australian Government’s Moneysmart insurance calculator is particularly helpful. Remember, higher sums cost more, but underinsuring can completely defeat the purpose of being covered. Consider seeking advice from a financial adviser that can take into account your specific circumstances.
6) Choose between variable and variable age-stepped premiums
Most insurers offer two ways to pay:
- Variable age-stepped premiums: which tend to start cheaper and increase with age – which may be a great option if you need affordable cover now
- Variable premiums: often cost more initially but generally more affordable long-term – which may be an advantage if you expect to hold cover for many years
7) Double-check the exclusions
The Product Disclosure Statement (PDS) must clearly outline the details of your policy. It’s here where you’ll find what’s covered and what’s not covered. You’ll also know what your insurer means when they use terms like 'trauma', 'disability, 'injury, 'illness' and 'terminal illness' - they are defined in the PDS. Zurich’s PDS are all publicly available at zurich.com.au/life-insurance/documents
8) Claims experience and support
When something goes wrong, you want care not red tape. So, look for an insurer who invests in claims support. They will often have claims numbers freely available on their website.
So, what is the best policy for you?
The ideal life insurance policy is the one that fits your needs. It has strong, clear terms you can rely on at claim time. Plus, it’s backed by an insurer you trust to be there for the long haul.
If that means you’ve found the right policy is with Zurich, we’ll be happy to help. Click here to request an online quote.
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. 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. You should also consider the Product Disclosure Statement (PDS) for a 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.
