Life Insurance Direct

Mitch Ramsbotham

Financial Expert Updated on June 20, 2023

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Cost is understandably one of the main considerations Australians think of when searching for life insurance. Everyone wants the cheapest deal but will purchasing life insurance directly be able to provide you with the best deal for your situation?

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Buying life insurance can be confusing at the best of times, especially if you aim to DIY and purchase your life insurance direct.

Buying life insurance directly from a carrier can save you money. Whether you buy your policy online or speak with a life insurance company representative, you should be able to find all the information you need.

The key to buying a quality policy is to ensure you are confident that you compare life insurance quotes (whether if you are buying life insurance direct or through a broker or an adviser).

Not every customer will need the same type of policy or the same amount of coverage. After a thorough, in-depth meeting with one of our Fiancnial Experts, interview, we will be able to match you with the right Specialist for your life cover, TPD, trauma cover and income protection.

What Is Direct Life Insurance?

Direct life insurance is a policy purchased directly from an insurance provider.

This means you do not work through a broker, agent or financial adviser. Direct life insurance is purchased directly through the carrier that will be providing your coverage. 

When you buy directly from a carrier, it will be up to you to do the majority of the research and independently:

  • Understand how much life insurance cover you need (to make sure you are not underinsured)
  • Ensure you can afford your life insurance premiums
  • Ensure the life insurance policies you purchase are right for your personal situation ad your family’s protection
  • Read and review the relevant product disclosure statement

If you plan on buying your policy directly from a carrier, you should make a few notes on what your financial plans are for the future so you can select the right life insurance policy for you.

Pros of Direct Life Insurance

There are pros of direct life insurance that many people appreciate. Unlike retail policies, you can go straight to the source for your insurance.

Pros of direct life insurance include:

  • an easy application process that you can DIY
  • Usually no need for medical exams or health checks
  • You can compare policy features and costs

Direct life insurance cover can also be purchased in conjunction with other insurance policies including:

  • Trauma insurance
  • Total and permanent disability
  • Income protection insurance

Cons of Direct Life Insurance

For all the benefits of direct life insurance, there are a few drawbacks that you may want to consider. One of the biggest complaints many people have is that there may be times when it is difficult to get in contact with a customer service provider for general advice.

Other disadvantages include:

  • your policy may not be tailored or right for your financial situation
  • the chance of underinsurance may be increased
  • Without advice, you may select the wrong insurance policy for you which could even cause you to have problems when you need to make life insurance claims
  • You will need to do the research and comparisons yourself (including costs, exclusions, application process etc.)
  • You will not have access to a financial adviser with an AFSL who can answer all of your questions and explain the product disclosure statement or PDS.

Financial services professionals will be able to answer most of your questions. But when you buy direct, it will be up to you to do all of the research yourself.


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Does Direct Life Insurance Cover Pre-Existing Conditions?

In most cases, the answer is yes. You can still buy a direct life insurance policy even if you have a pre-existing health condition. Many carriers know that clients who have existing medical conditions need life insurance just like everyone else. 

This is why many Australian insurance providers have created policies with varying exclusions that are able to accommodate these conditions and allow people to get the proper coverage they need.

Many pre-existing health conditions are not life-threatening and may not have a dramatic effect on a person’s longevity. Just like when applying for health insurance, it is extremely important that a person is as upfront and honest as possible when it comes to filling out their life insurance.

Having a critical illness will not automatically exempt you from direct insurance coverage. Giving your insurance carrier access to your medical history is a key factor in determining what type of cover you get. As long as you are honest about your medical conditions and individual circumstances, most insurance providers will have a policy you are eligible for.

Which Way of Buying Life Insurance Cover Is Right for Me?

Choosing whether to buy a policy from a direct life insurance carrier or from a retail agent is often a personal choice.

For those who prefer the direct approach and dealing with the research and decisions on their own, choosing direct life insurance is definitely the way to go. It may also be easier for your beneficiaries to sort things out.

If you want access to an insurance agent or financial advisor when it is most convenient for you, purchasing through a broker, or adviser may be more suited for you. A financial adviser or Insurance broker will handle the legwork for you. They will deal directly with your insurance provider and in some cases, they will provide ongoing support to ensure that your policy is kept up to date and relevant to your financial situation.

It is up to you to buy the type of cover you need to feel comfortable for your personal circumstances.

Here are some signs buying direct life insurance is the right method for you:

  • You’re comfortable selecting a policy and applying on your own
  • You have a good understanding of what life insurance policies and how much cover you need

Here are some signs working with a financial adviser is the right method for you:

  • You don’t know how much cover you need
  • You don’t know what policies/products are right for you
  • You need life insurance questions answered
  • You’re not sure what exclusions exist
  • You want to be sure your policy is personalised to you and your family

If you live in Australia, buying direct life insurance is just one option you have available to you. Your life insurance needs are unique. Having peace of mind is an important factor if you want to feel secure and protected.

Still not sure where to start, or want help securing the right insurance faster? 

That’s okay!

Many people may be unaware of this…but just like you, 41% of Aussies intend to get financial advice rather than going it alone, according to an Australian Securities and Investments Commission (ASIC) report.

You can reach out to My Money Sorted to guide you for free before you seek professional advice from an insurance expert!

When you book a call with My Money Sorted, you’ll:

✓ get a better understanding of your money matters

✓ have an idea of your money goals

✓ be matched with the right insurance expert who can help simplify your search for an insurance policy that fits your needs

My Money Sorted is your stress-free pathway to getting ahead with your money. Here’s what your journey will look like:

Step 1: Start off with a quick money matters session with My Money Sorted

Step 2: Get matched with a Insurance Expert that’s right for your money situation

Step 3: Take the first step towards getting the protection you need with a clear and sound roadmap prepared by an Insurance Expert

It’s that easy!


I want to see all my options with the help of a Finance Expert

Call Our Team Today
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