At AIA Financial Wellbeing, we know that life insurance is an important decision, but it can be challenging to navigate – not only are there different types of cover (including income protection, trauma and total & permanent disablement) but there are different ways to purchase it. Here’s a quick breakdown of your options to help you choose the right pathway for you.
How to buy life insurance
ARTICLE
28 April 2025
4 min read
4 min read
Did you know there is more than one way to buy life insurance?
Going direct
Buying life insurance directly from an insurer is a do-it-yourself approach. You can research and choose your cover on your own, obtaining quotes and purchasing policies online or over the phone. This may be convenient for those who prefer taking control of the process.
However, this method doesn’t include financial advice. Without an insurance agent or financial planner, you may miss the finer details of the policy you’re purchasing. Direct insurance also tends to have less comprehensive underwriting, which can result in higher premiums and more restrictive coverage. If you’re comfortable managing things independently, buying directly might be a simple solution, but be aware of the potential limitations.
Life insurance via AIA Financial Wellbeing general advice
Opting for life insurance through AIA Financial Wellbeing’s general advice service gives you access to free expert guidance without committing to full personal advice. We provide general advice on the AIA Priority Protection life insurance product to help you understand what it can cover you for, provide a quote and support you through the underwriting process. This product generally results in better underwriting outcomes, fewer restrictions, and more competitive pricing than direct insurance.
Importantly, as with buying direct, the onus is on you to assess how much cover you need. Our consultants can provide information and general advice about the features of the policy, but not tailored, personal financial advice. If you want some expert support while maintaining control over your choices, this could be the right option for you.
Life insurance through a financial adviser
If you’re seeking a comprehensive strategy that integrates with your financial and life goals, working with a financial adviser is ideal. Financial advisers offer personalised recommendations based on your circumstances and goals, helping you choose the right coverage amount, policy features, and funding structure.
Financial advisers, like the ones who work for AIA Financial Wellbeing, also compare multiple options from a range of providers to ensure you get a product suited to your circumstances, especially if you have specific needs such as pre-existing conditions. This approach is perfect for those who want life insurance as part of a strategic, tailored financial plan and are happy to pay an expert to do the research for you.
Paying for life insurance through superannuation
You can also fund your life insurance premiums through your superannuation. This option can ease the impact on your cash flow by using your super balance to pay for premiums.
This method works for both retail life insurance and group insurance within super funds. However, it’s important to ensure that your super balance and ongoing contributions remain sufficient to cover premiums. It’s worth keeping in mind that funding insurance premiums via super will affect your long-term retirement savings.
Which option is right for you?
Choosing the right way to purchase life insurance depends on your preferences, budget and comfort level. If you want a quick, straightforward solution, buying directly from the insurer is an option. For those seeking some expert guidance without paying an advice fee, general advice with AIA Financial Wellbeing is a great choice. If you’re after a fully personalised strategy, consider working with a financial adviser. Paying through superannuation can help manage costs, but it’s important to understand the impact on your retirement savings.
No matter which option you choose, the key is to ensure you’re protected. At AIA Financial Wellbeing, we’re here to help you make an informed decision and find the cover for your needs, whether through general or personal advice.
Disclaimer:
Copyright © 2025 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
Copyright © 2025 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
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