Retail vs Direct Life Insurance in Australia

"Direct" life insurance is bought online or over the phone without advice. "Retail" cover is arranged through the advised channel and is fully underwritten when you apply. The two can look similar on price, but they differ in how your cover is assessed, how the policy is defined, and what happens at claim time.

Underwriting

Retail cover is underwritten up front, so what you are covered for is clear before you pay. With direct cover the health assessment is sometimes deferred until you claim.

Policy definitions

Retail policies carry detailed definitions and a wider range of options and policy combinations. Direct policies typically offer more limited choices and policy types.

Premiums

Direct cover is usually lower in cost at the start for equivalent cover, and often higher over the long term.

Claims support

With retail cover an adviser assists you through the claims process. Direct claims are handled by the insurer only.

Frequently asked questions

Is direct life insurance bad?

No. It suits people who want cover quickly without advice. The trade-off is that assessment is often deferred to claim time, and the range of definitions and options is narrower.

Does advice cost me anything?

No. We are paid by the insurer only when a policy is issued, so the comparison costs you nothing.

New to the different types of cover? See our overview of Life, TPD, Trauma and Income Protection, or compare insurers.

We compare cover from 11 APRA-regulated insurers. Your Choice - Life Insurance is an Authorised Representative (AR 001318312) of Life Plan FP Australia Pty Ltd, AFSL 277681. General advice only - this does not consider your personal objectives, financial situation or needs. Consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before deciding.

Written by Sam Yakoubian, Authorised Representative 001318312 of Life Plan FP Australia Pty Ltd, AFSL 277681.

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