Communicating the value of life insurance

Jul 2021

Life insurance offers a financial safety net when unforeseen events or tragic circumstances impact people’s lives. And while it’s one of those things people need, they don’t necessarily seek it out, or want to talk about it.

For some that may be because the life insurance industry is seen as complex, while others may be playing the odds or too focused on the here and now to plan for times ahead.

Unfortunately, we know no one is immune from life-changing events and there is much to lose when people gamble with our financial future.

That’s why MetLife has released the Value of Life Insurance Report, a tool designed to help industry participants talk about the broad benefits of life insurance to the individual and beyond.

The report outlines three important points financial advisers can make to their clients when discussing the value of life insurance.

More efficient than a savings strategy

Life insurance provides more effective financial support than an emergency savings strategy, which is generally insufficient for households where the main wage earner dies or is unable to work due to illness or injury.

Consider a 40-year-old non-smoker who wants to provide $500,000 of financial security for their dependents if they die. They would need to save over $15,000 a year for 20 years or $1,250 per month. Alternatively, this same person could obtain $500,000 worth of Life cover (only) from as little as $30 per month through their financial adviser.

More adequate than social security benefits

A client may think they can rely on government support if something goes wrong. While Australia’s social security system can provide some relief to families who have lost their main income earner, or for individuals who are no longer able to work to their full capacity, it generally cannot maintain their standard of living.

Disability payments provided by the Government tend to be less than $500 a week (for someone over 21) or less than $26,000 a year1. Comparatively, income protection cover would deliver much greater value to the policy holder. MetLife Australia pays out on average $1,000 a week on IP claims, significantly more than what someone would receive in disability payments from the Government.

Less burden on the taxpayer

People without life cover, or who are underinsured, are more likely to draw on welfare payments which is a significant cost to taxpayers.

At present, there are approximately 750,000 people receiving disability benefits in Australia with the Government paying out $16.5 billion annually2.

Life insurance provides an alternative, self-funded source of support that better suits the individual’s needs where they’ve been impacted by illness or injury.

Click here for more information or to download a copy of the report.


  1. Australia Government disability pay rates
  2. AIHW People with disability in Australia

© MetLife Insurance Limited (MetLife) 2024. While care has been taken in preparing this material, MetLife does not warrant or represent that the information, opinions or conclusions contained in this information are accurate. The information provided is general information only is current as at the time of production. It has been prepared without taking into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you. It is not intended to be a substitute for professional advice and should not be relied upon as such.  MetLife recommends that you obtain independent and specific advice from appropriate professionals before implementing a financial strategy, including reading any relevant product disclosure statements and/or terms and conditions. 

This website contains general information only, which does not take into account your personal financial situation, objectives or needs. Before deciding whether to acquire, or continuing to hold, any of our products, please seek appropriate independent financial advice to assess whether it is suitable for you. You should also consider the relevant Product Disclosure Statement, available upon request by calling 1300 555 625, before making any decision. Life insurance products are issued by MetLife Insurance Limited ABN 75 004 274 882, AFSL 238096.

By accessing this website you agree to comply with MetLife's Legal Notices

More articles from MetLife 

Read more