General Knowledge
Why Adviser-Quality Cover Beats Seniors or Funeral Insurance
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As we move into our 50s and beyond, many Australians start thinking seriously about life insurance. Whether it's to clear debts, support loved ones, or simply have peace of mind, having the right policy matters more than ever.
But not all insurance is created equal — especially if you're comparing what's marketed directly to over-50s (think: "no medical,""guaranteed acceptance") versus adviser-quality life insurance.
Royal Commission verdict
The Rise of Seniors & Funeral Insurance — and Why to Be Cautious
Turn on the TV during the day or scroll Facebook, and you'll be bombarded with offers for seniors life cover or funeral insurance. These products are sold direct to consumers, usually with:
- No medical checks
- Guaranteed acceptance
- Fast, over-the-phone sign-up
Sounds convenient — but here's the catch.
The 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovered major issues with these products:
- Low payout ratios — Only ~33% of premiums were paid out in claims.
- Sky-high cancellation rates — Over 80% of policies were cancelled.
- Targeting vulnerable Australians — Aggressive marketing practices.
Royal Commission verdict
The Royal Commission found that many of these policies were considered "junk insurance" — high on marketing, low on actual value.
Whilst there has been a lot of regulatory change since the royal commission findings to improve these things, these products still represent a high cost for low cover (see below).
Product comparison
Adviser-Quality Life Insurance: What Makes It Better?
Adviser-quality life insurance is the kind traditionally accessed only through a financial adviser. It's more comprehensive, underwritten up front (not at claim time), and tailored to your life stage and needs. And because of this, they are generally significantly better value than direct products.
And, thanks to digital platforms like ours, you can now access these same high-quality products without going through a traditional adviser or paying ongoing advice fees.
- 01
Real Cover for Real Needs
Funeral insurance often only pays $5,000-$15,000. Adviser-quality life insurance starts at $50,000 and can go into the millions - enough to pay off a mortgage, protect dependents, or preserve your estate.
- 02
Medical Underwriting (Yes, It's a Good Thing)
Upfront underwriting means your policy is assessed and locked in when you buy it - reducing the risk of disputes or delays later.
Compare that to "guaranteed acceptance" seniors insurance, where a component of underwriting happens at claim time. This is why claims denial rates are higher for guaranteed acceptance products, and this occurs at the worst possible time for your loved ones.
- 03
Level Premiums = Predictable Costs
Most seniors cover has stepped premiums - they increase every year. Adviser-quality products also offer level premium options, allowing you to select the premium option which suits you the most.
- 04
Built-In Benefits
Adviser-grade policies often include:
- Terminal illness payouts
- Funeral advancement benefits
- Financial advice services
- Grief counselling
- 05
Guidance Without the Full-Fee Model
Our platform lets you access these adviser-quality products online, in your own time. We collect, and in some cases return, a large portion of the adviser commissions.
2026 pricing
Let's Talk Numbers — the Cost Comparison
Here is an example using a male, non-smoker, age 56 in a clerical job.
Note: Prices vary based on age, health, and sum insured selected.
| Policy type | Avg. annual premium | Example cover |
|---|---|---|
| Adviser-Quality Life Insurance | $365 | $100,000 |
| Direct Insurance | $625 | $100,000 |
| Funeral Insurance | $736 | $10,000 |
Regulator data
Hard Data from the Regulator — APRA Claim Stats
According to the Australian Prudential Regulation Authority (APRA):
Adviser-quality
96.9%
claims acceptance rate
Direct policies
91.1%
claims acceptance rate
Adviser Led Insurance is processed faster, 1.5 months average processing time. Direct and funeral policies face more disputes due to confusing terms & fine print.
Fit check
So, Who's It Right For?
Adviser-quality life insurance is ideal for Australians over 50 who:
- Want comprehensive cover
- Are in reasonably good health
- Still have financial responsibilities
- Want to leave a legacy or cover estate costs
Takeaway
Don't Settle for "Easy" If It's Not Better
It's tempting to take the "guaranteed acceptance" route. But easy doesn't mean better — especially when it comes to life insurance.
Before locking in a policy that might fall short when it matters most, consider adviser-quality life insurance. You get more meaningful protection, better claims support, and potentially more money returned to you.
Frequently Asked Questions
What is the best life insurance option for Australians over 50?
Adviser-quality life insurance is often the best option for over 50s, offering higher cover, better long-term value, and more robust claims outcomes compared to direct-to-consumer seniors or funeral insurance.
Is medical underwriting required for life insurance after 50?
Adviser-quality life insurance typically requires medical underwriting upfront, which actually protects you at claim time by reducing the risk of denial or delays. Direct policies may underwrite later which can impact claims denial rates — which is when it matters most.
How much cover can I get with adviser-quality life insurance?
Most adviser-quality policies start at $50,000 and can extend into the millions. This contrasts with funeral insurance, which usually caps between $5,000 and $15,000.
What did the Royal Commission say about seniors and funeral insurance?
The 2018 Royal Commission identified many funeral insurance products as poor value or "junk insurance," with low payout ratios and high cancellation rates, often targeting vulnerable consumers.
Are adviser-quality policies more expensive?
Not necessarily. While premiums vary by age and health, adviser-quality life insurance generally offers a better cost-per-$1,000 of cover, and level premiums can help manage long-term affordability.
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