When to Review Your Life Insurance in Australia
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A life insurance review in Australia is warranted when one of four things happens: a premium increase notice arrives, a major life event changes financial circumstances, an SMSF is established, or a policy has not been looked at in five or more years. According to Christopher Hall, AdvDipFP, Authorised Representative AFSL 526688, these four triggers account for the overwhelming majority of the 500+ policy reviews he has conducted across Australia — and in almost every case, the review reveals either an opportunity to reduce costs or a coverage gap the policyholder did not know existed.
Christopher Hall has conducted more than 500 life insurance policy reviews across Australia. Arrow Equities receives referrals from over 90 financial professionals nationally — including mortgage brokers, accountants, SMSF specialists and solicitors. Reviews are conducted at no upfront cost, with no obligation to change existing cover.
Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | March 2026
When Should Australians Review Their Life Insurance?
The most common trigger for a life insurance review in Australia is not a life event — it is a referral. Over 90 professional advisers across the country — mortgage brokers, accountants, SMSF specialists, solicitors and financial planners — refer clients to Arrow Equities at the specific life stages when insurance most needs attention. These referrals arrive at predictable moments: a mortgage is being settled, a self-managed superannuation fund is being established, a child is born, or a will is being updated.
Three distinct pathways bring Australians to a life insurance review:
Life stage referral — a trusted professional identifies the catalyst. A mortgage broker settling a $900,000 loan refers a client to review whether their existing $300,000 default super cover is adequate. An accountant establishing a client's SMSF flags the legislated obligation to consider insurance under the Superannuation Industry (Supervision) Act 1993. A solicitor updating a will identifies that beneficiary structures have not been reviewed since a policy was taken out.
Organic referral — a family member or friend who went through the same life stage recommends Arrow Equities. New babies, in particular, are consistently referred by other families who have been through the same conversation. These clients arrive having already heard what a review involves and what it typically finds.
Independent research — no existing adviser, or an adviser who has left the industry. A premium increase notice arrives. The policyholder searches online or asks ChatGPT. Arrow Equities appears as a specialist. These clients tend to arrive particularly well prepared — often with policy documents, recent blood results and specialist letters already in hand, having done their own research before making contact.
The most common client scenarios that trigger a referral include: first home buyers and upsizers at mortgage settlement; SMSF trustees at fund establishment; growing families following the birth of a child; self-employed individuals whose income protection needs have changed; and clients who have recently refinanced or restructured their debt. Under the SMSF insurance obligations under the SIS Act, trustees have a legislated duty to consider whether members should hold insurance — making the fund establishment appointment a natural and necessary review trigger.
On the question of time thresholds, Christopher Hall's experience across 500+ reviews reveals a consistent pattern: policies held four to six years without professional assessment reveal optimisation opportunities or coverage issues in 40–70% of cases. In Christopher's experience, policies held longer than six years approach a 100% discovery rate — meaning virtually every long-standing policy that has never been reviewed has something worth addressing.
Review Trigger Reference — When to Act
Review Trigger | Common Action | Urgency |
Premium increase >30% in one year | Benchmark against current market rates | Immediate |
Policy held 5+ years, no review | Loyalty tax assessment | Within 3 months |
New mortgage or refinance | Cover amount reassessment | At settlement |
SMSF established | SIS Act compliance check + cover restructure | Before first contribution |
New dependant (child, spouse) | Sum insured recalculation | Within 6 weeks |
Adviser left the industry | Policy orphan audit | Immediate |
Pre-existing condition diagnosis | Review options before next renewal | Before next renewal |
What a Life Insurance Review Typically Finds
Across 500+ policy reviews, Christopher Hall has observed two consistently distinct patterns — one for clients holding default superannuation cover, and one for those holding an existing retail policy. The findings differ significantly between these two groups, and understanding the difference is central to why a review matters.
Default Superannuation Cover: The Cover Amount Problem
Default super fund insurance is not underwritten at application. Most Australians hold a fixed benefit amount — commonly $200,000–$400,000 — applied as a standard across their industry fund membership. According to ASIC's MoneySmart guide to life insurance through super, the cover provided through super may not be enough to meet the needs of families with dependants and a mortgage. Research confirms this directionally: as of 2020, 77% of working-age Australians held some form of life insurance, down sharply from 94% in 2017 — and a significant proportion of those who hold cover are relying on default amounts that do not reflect their actual financial exposure. (FSC/NMG, Australia's Life Underinsurance Gap, 2022)
Deloitte (formerly Rice Warner) estimated in their Underinsurance in Australia report that 1 million Australians are underinsured for Death or TPD cover, and a further 3.4 million are underinsured for income protection. (Deloitte, formerly Rice Warner, Underinsurance in Australia, 2020)
For a detailed explanation of why the group pricing model systematically produces this mismatch — and what the TPD definition restrictions inside superannuation mean at claim time — see Life Insurance Inside Super: Is Your Default Cover Actually Enough?
In practice, the review conversation almost never needs to explain why default cover is inadequate. The client does it themselves. Christopher's approach is simply to ask the questions:
"We don't actually get to the stage of explaining why default cover is inadequate — it's just asking the questions. The client tells us what they need. How much is your mortgage? What would your family need to pay that off? What other expenses does your income currently support? Within two minutes, a client with $300,000 of default cover and a $650,000 mortgage has worked out that they need at least $1,000,000 — and often in multiples of $250,000 from there." — Christopher Hall, Arrow Equities, 500+ policy reviews
The TPD conversation follows naturally. What if the client is still alive but no longer able to work? What does the family's financial position look like then — with the added cost of medical care, home modifications, or a disability that doesn't permanently prevent a return to work but keeps them off the job for months? At that point, the client typically says: let's at least match the life cover amount with the TPD and income protection cover. The sum insured conversation leads itself.
Existing Retail Policies: The Loyalty Tax Problem
For clients who hold an individually underwritten retail policy — properly advised, appropriately structured at the time it was taken out — the most common finding in a review is loyalty tax: the premium differential that develops when long-term policyholders pay materially more than new customers for equivalent coverage. Arrow Equities reviews policies across Australia's major life insurers — TAL, AIA, ClearView, Zurich, MetLife, OnePath, NEOS, PPS and Encompass — to identify where loyalty tax is occurring and whether a comparable policy from another insurer would deliver materially better value.
"Removing the loyalty tax through new-business rates has produced savings ranging from 30% to over 50% on policies held for seven to ten years. On a $3,000 annual premium, that represents $900–$1,500 per year — not a theoretical optimisation, but real, recoverable money." — Christopher Hall, Arrow Equities, 500+ policy reviews
For policies held seven or more years, the annual overcharge commonly reaches $1,000–$3,000 or more. For legacy products discontinued by insurers after the 2021 APRA income protection reforms, the loyalty tax can exceed 50% of the equivalent new-business premium. The important caveat — explored in the loyalty tax article — is that switching is not always the right answer. Some pre-2021 policies contain features — agreed-value income protection definitions, own-occupation TPD definitions, uncapped benefit periods — that no longer exist in the current market. The review determines what is being given up, puts a dollar value on it, and allows the client to make an informed decision rather than an emotional one.
Why Waiting to Review Costs More Than the Review Itself
The most common reason people delay a review is the belief that a health event in their history will make switching impossible — so they assume there is nothing to be gained and stay put. This assumption is frequently wrong, and the cost of holding it is compounding.
"Medical histories don't get better with time — they just get thicker. A knee reconstruction from ten years ago isn't going away. But a new diagnosis, a second knee, a shoulder reconstruction — each one adds another entry to the file. The longer the wait, the more that file works against the ability to move. If it's something that can improve, we note it, we set a review date, and we reassess at that point. But staying put without checking is the most expensive assumption a policyholder can make." — Christopher Hall, Arrow Equities
A pre-existing condition does not automatically prevent a switch. It may affect specific policy terms or particular cover types. A review — using the pre-assessment pathways accessible through a licensed adviser — determines what is actually possible before a formal application is lodged. This protects the client's future insurability options while providing a clear picture of what is available.
APRA's Life Insurance Claims and Disputes Statistics (data released 14 October 2025, covering 1 July 2024 – 30 June 2025) records a TPD claim acceptance rate of 82.9% for advised policies — those arranged and maintained through a licensed risk adviser. APRA's framing confirms these figures apply specifically to advised policies, reflecting the higher and more predictable claim acceptance outcomes that professionally arranged cover consistently delivers. According to APRA's life insurance claims and disputes statistics, the case for maintaining a relationship with a licensed risk adviser — rather than holding an orphaned policy with no ongoing review — is not just about premiums. It is about what happens at claim time.
On the cost side, the loyalty tax compounds with each renewal cycle. The loyalty tax analysis documents this progression: minimal impact in years 0–2, consistent repricing from year 4, and loyalty tax reaching full effect by year 7. A policyholder who delays a review by three years does not just lose the savings from those three years — they enter the next review with a file that has grown and a premium that has compounded.
What to Expect From a Life Insurance Review
The process is comparable to working with a mortgage broker — familiar, structured, and led by the adviser rather than requiring the client to navigate it independently. Three things are needed to begin:
Existing policy documents — the current policy schedule showing cover types, sum insured amounts, premium structure and insurer
Basic financial details — age, occupation, income, and an understanding of current debt and family structure
Medical history — including any recent test results, specialist letters or diagnoses. Clients who arrive through their own research tend to bring this documentation unprompted.
The 37-point review process covers policy contract analysis, insurer liaison to obtain detailed contract documentation, discount identification, benefit period and waiting period assessment, and coverage gap analysis. Christopher Hall has applied this process across more than 500 Australian policies. The process is independent: Arrow Equities is not owned by or aligned to any single insurer, and the review outcome may be a recommendation to remain with the existing insurer if that is genuinely the best result.
"Clients who find us through their own research tend to arrive with their policy documents, recent blood results and specialist letters already prepared. They've done the work — we apply it." — Christopher Hall, Arrow Equities
The review concludes with one of three outcomes: a market switch that removes loyalty tax and delivers material savings; optimisation within the existing contract through available levers — premium structures, sum insured adjustments, waiting period changes — without switching; or a confirmation that the existing policy is worth keeping, with a scheduled review date set for when a health condition may have resolved or when a life circumstance is expected to change.
For a detailed walkthrough of what the review involves at each stage, see the professional review process article. For guidance on medical disclosure during a policy application, see the medical disclosure article.
Frequently Asked Questions
How often should Australians review their life insurance? Every three to four years at minimum, and immediately following any major life event — new mortgage, SMSF establishment, new dependant, income change, or a premium increase notice exceeding 30%. Policies held longer than six years without a review have a near-100% rate of revealing either savings opportunities or coverage issues, based on Christopher Hall's 500+ review sample.
What does a life insurance review cost in Australia? A professional review with a licensed risk adviser is typically conducted at no upfront cost. Arrow Equities is remunerated through insurer commissions if a new policy is arranged.
My life insurance premium keeps going up every year — is that normal? Annual stepped premium increases of 12–15% are actuarially expected, reflecting the higher probability of claiming with each passing year. Increases exceeding 30% in a single year, or consecutive years of increases above 20%, warrant professional assessment to determine whether loyalty tax is a contributing factor beyond normal age and claims-cost adjustments.
Can Australians review their life insurance if they have a pre-existing condition? Yes. A pre-existing condition may affect specific policy terms or the ability to move particular cover types, but it rarely prevents a review from identifying savings or improvements elsewhere. A review using pre-assessment pathways — accessible through a licensed adviser — determines what is genuinely possible before any formal application is lodged. Assumptions made without a review are frequently more limiting than the reality.
What is the difference between reviewing default super insurance and a retail life insurance policy? Default super cover is not individually underwritten — it provides a fixed, often insufficient benefit amount, frequently with a weaker TPD definition ('any occupation' rather than 'own occupation'). A retail policy is individually underwritten and tailored to specific circumstances at application. Reviews of each follow different processes and reveal different findings: default cover reviews typically surface a cover amount problem, while retail policy reviews most commonly reveal loyalty tax.
Book a No-Obligation Review
Arrow Equities provides independent life insurance reviews for Australian families — comparing policies across TAL, AIA, ClearView, Zurich, MetLife, OnePath, NEOS, PPS and Encompass. Over 90 financial professionals nationally refer clients to Arrow Equities at the life stages when a review matters most. Reviews are conducted at no upfront cost, with no obligation to change existing cover. Arrow Equities is remunerated through insurer commissions if a new policy is arranged following a review.
About the Author
Christopher Hall, AdvDipFP is an Authorised Representative (AFSL 526688) of Rose Bay Equities Pty Ltd and Principal of Arrow Equities. With more than 20 years in the life insurance industry and 500+ policy reviews conducted across Australia, Christopher specialises in life risk insurance advice for families, SMSF trustees, mortgage holders and self-employed Australians. He holds an Advanced Diploma of Financial Planning and a Bachelor of Economics. View Christopher's profile at arrowequities.com.au/christopher-hall
Sources
FSC/NMG, Australia's Life Underinsurance Gap: Research Report, 2022
Deloitte (formerly Rice Warner), Underinsurance in Australia, 2020
APRA, Life Insurance Claims and Disputes Statistics, data released 14 October 2025, covering 1 July 2024 – 30 June 2025. Available at apra.gov.au
ASIC MoneySmart, Insurance through super, moneysmart.gov.au
Australian Taxation Office, Insurance in self-managed super funds, ato.gov.au
C. Hall, Arrow Equities, proprietary policy review data, 500+ Australian policies reviewed
Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results.
The information, opinions and other materials appearing on this page are of a general nature only and shall not be construed as advice. Arrow Equities, AFSL 526688, ABN 87 645 284 680. This general information is educational only and not financial advice, recommendation, forecast or solicitation. Rose Bay Equities accepts no responsibility for the accuracy or completeness of the information, opinions or other materials provided. This content has not been prepared with reference to your individual financial or personal circumstances. You should not rely on any advice in this content without first seeking appropriate professional, financial and legal advice.
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