By Tony Smilevski · Updated 11 October 2026
Key points
- ClearView's PDS says its Life Cover benefit amount "may be used to pay off the mortgage and other outstanding debts", and lists death and terminal illness as Life Cover's insured events.[1]
- ClearView's PDS says a policy can be set up to cover your own or someone else's life, and for a non-super policy the owner is in most cases the person insured,[2] but OnePath's and Futura's PDSs say that inside super you cannot apply for cover on the life of another person, such as a spouse or child.[3][4]
- TAL's Accelerated Protection Combined PDS (its TAL Super section) says the trustee decides who receives a death benefit unless a valid binding nomination applies, and a binding nomination remains valid for only three years, after which the trustee decides.[5]
- ClearView's Child Cover has entry ages of 12 months to 18, an expiry age of 21, a minimum benefit of $10,000 and a maximum of $200,000 per child across ClearView and other insurers; it isn't available inside super, and it ends if the adult cover it is applied for with is declined, cancelled (other than for a claim) or lapses.[6]
- TAL's Child's Critical Illness Insurance applies only if shown in the policy schedule, can't be structured through super, and limits payments per child, including cover with other organisations, to $250,000.[7][8]
People use "mortgage life insurance" for life cover, sometimes with total and permanent disability (TPD) cover, where the amount is chosen with a home loan in mind.
What is mortgage life insurance?
The product disclosure statements (PDSs) and target market determinations (TMDs, which say who a product is designed for) quoted here don't describe a product with that name. Life cover pays a lump sum on death or terminal illness, and TPD cover if you become totally and permanently disabled (see our life insurance and TPD guides). Insurers link cover to a mortgage in general terms:
- ClearView's PDS says the Life Cover benefit amount "may be used to pay off the mortgage and other outstanding debts".[1]
- AIA's TMD describes commitments an estate would not satisfy on terminal illness or death, including "mortgage and other debt servicing costs, final expenses, and income replacement".[9]
This guide doesn't cover insurance sold through a lender, because the documents quoted here don't describe it.
Do I need life insurance for a mortgage?
We can't tell you whether you need it. That depends on your own circumstances, and this page doesn't take them into account. Whether a lender asks for any insurance is a question for that lender.
What to weigh: life cover pays on death or terminal illness, not for other illness or injury.[1] See our how much cover guide for the general method.
Can I buy life insurance for my parents or someone else?
Some policies can be taken out on another person's life. The policy owner (who holds the policy) and the life insured (whose life is covered) can be different people.
- Zurich's PDS says that outside super you "can apply for other policies on your own life or the life of another person".[10]
- ClearView's PDS says a policy "can be set up to cover your own or someone else's life, such as a family member or a business partner". In most cases the owner is the person insured, but it could be their partner, a company or a trust.[2]
- Inside super, OnePath's and Futura's PDSs say you cannot apply for cover on the life of another person, such as a spouse or child.[3][4]
- Who is paid: ClearView's PDS says the policy owner generally receives any benefits, but a nominated beneficiary receives the death benefit under Life Cover held outside super.[11] Zurich's PDS says that where the owner is the life insured, a death benefit generally goes to their legal personal representative (who manages their estate) or nominated beneficiaries.[10]
TAL's PDS says there is a duty to take reasonable care not to make a misrepresentation (a false, partially true or misleading answer). If "you or the Life Insured" don't meet it, TAL may, depending on the circumstances, "avoid the cover (treat it as if it never existed)" or vary its amount or terms. It may also ask "you or the Life Insured" for further information.[12]
Who is the beneficiary? Trusts and wills
The rules for nominating a beneficiary depend on the insurer and on whether the policy is inside or outside super.
- ClearView, outside super: the owner can nominate up to five beneficiaries, each a natural person, corporation or trustee, in whole numbers totalling 100%. The owner can change a nomination at any time if ClearView has it in writing before death. If a nominee dies before a claim, that share goes to the owner or their estate. If ownership is assigned or transferred, earlier nominations become invalid.[11]
- AIA, inside super: you may nominate only dependants (as super law defines them) or your legal personal representative. With a non-binding nomination the trustee "has complete discretion". A non-lapsing (doesn't expire) binding nomination must be paid as nominated if it is valid and the nominees are eligible at death. It needs the trustee's consent, and two witnesses aged 18 or over who aren't nominated beneficiaries. It stays valid while you are a member unless you revoke or replace it.[13]
- TAL Super: the trustee decides who receives a death benefit unless a valid binding nomination applies. A non-binding nomination is a guide the trustee takes into account. A binding nomination needs two witnesses over 18 who aren't beneficiaries and "remains valid for only three years"; after that, the trustee decides.[5]
Wills and trusts are legal documents, and a solicitor handles them. We don't. Zurich's PDS lets a sole owner who is also the life insured nominate a trust as beneficiary. It says if ownership is assigned to another person the nomination is automatically revoked.[14]
Life insurance for kids
- ClearView's Child Cover pays a lump sum if the insured child is diagnosed with a listed trauma condition and survives 14 days, is terminally ill, or dies. Some conditions have a 90-day qualifying period, and some pay only part of the benefit.[15] Entry ages are 12 months to 18 and expiry age is 21. Benefit amounts are $10,000 to $200,000 per child with ClearView or other insurers. It isn't available inside super. If the adult cover it is applied for with is declined, cancelled (other than for a claim) or lapses, it is too.[6]
- TAL's Child's Critical Illness Insurance applies only if shown in the policy schedule, can't be structured through super, and pays if the child suffers a listed critical illness event.[7] Payments per child, including cover with other organisations, are limited to $250,000. It ends on the earliest of several events, including the policy anniversary before the child's 23rd birthday.[8] At the end, the child can apply for adult life and critical illness cover without further medical information, except smoking status and occupation, within 30 days of the plan end date.[8]
Should both parents have life insurance?
We can't tell you whether both parents should hold it. That depends on your own circumstances, and this page doesn't take them into account.
ClearView's PDS says a separate policy applies for each insured person.[2] What to weigh: AIA's TMD describes commitments to dependants such as a spouse or children.[9] MetLife's TMD also describes "financial-in-kind" commitments, such as "unpaid childcare responsibilities".[16]
What happens to cover when my family changes?
Cover doesn't change by itself when your family does. Some policies let you apply to increase it after set events, without new health evidence. Each also lists business events, not shown here.
- ClearView Future Increase Benefit (Life, TPD and Trauma Cover). Personal events: marriage; you or your partner giving birth or adopting; a dependent child starting secondary school; completing an undergraduate degree at a government recognised Australian university; divorce; death of your spouse; becoming a carer for the first time; taking out or increasing a mortgage on your principal place of residence with an Australian licensed mortgage provider (not re-draw or refinancing); a promotion or salary package increase of 15% or more.[17] Apply within 30 days of the later of the event or the next policy anniversary. One event per cover type in any 12-month period. Increases are capped and the premium rises with the cover (see our premiums guide).[18] It isn't available from the policy anniversary after you turn age 60, while a claim is being paid, lodged or can be made, or with a medical loading over 100% or two or more exclusions. For six months, the increase only pays for an accident.[19]
- TAL Guaranteed Future Insurability Benefit (Life, TPD and Critical Illness). Personal events: birth of a child; adoption; a dependent child starting primary or secondary school; marriage; divorce; a base salary rise of at least $10,000 (employees only); completing a post graduate degree; taking out or increasing a mortgage; becoming a carer; ceasing to have any tax dependents. Apply in writing within 30 days of the event, or within 30 days before the next policy anniversary after it. The event must happen while the life insured is under age 55, and the benefit can be used once in any 12-month period. Increases are capped.[20] It can't be used if the plan has an exclusion or a premium increase for medical history or pastimes, or while a claim can be made or is being paid, among other cases. For six months, the increase only pays for an accident.[21]
How the insurers compare
Options to apply to increase cover after a family event (each PDS also lists business events, not shown):
- Insurer and benefit: ClearView Future Increase Benefit (Life, TPD and Trauma Cover) — Some events that qualify: Marriage, birth or adoption, a new or increased home mortgage with an Australian licensed provider (not re-draw or refinancing), or a pay rise of 15% or more.[17]; Main conditions: No new medical evidence; apply within 30 days of the later of the event or next policy anniversary; other limits (see What happens to cover when my family changes?).[18][19]
- Insurer and benefit: TAL Guaranteed Future Insurability Benefit (Life, TPD and Critical Illness) — Some events that qualify: Birth of a child, adoption, marriage, a new or increased mortgage, or a base salary rise of at least $10,000 (employees only).[20]; Main conditions: No evidence of health or pastimes; apply in writing within 30 days of the event or within 30 days before the next policy anniversary; the event must happen under age 55; other limits (see What happens to cover when my family changes?).[20][21]
Questions to ask before you choose
- Who will own the policy, who will be the life insured, and who is nominated to be paid?
- What does the insurer need from the person whose life would be insured?
- If cover is inside super, who decides who is paid, and how long does a binding nomination last?
- Which family events allow an increase without new health evidence, and by how much?
Read the insurer's PDS and TMD before deciding. You can find them in our PDS and TMD library. We deal with 11 Australian life insurers. For general information about anything in this guide, book a time with Tony or call 0433 22 77 11.
Sources
- [1] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 10.
- [2] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 22.
- [3] OnePath OneCare PDS (Mar 2026), PDF page 129.
- [4] Futura Protection PDS (Oct 2025), PDF page 111.
- [5] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 61.
- [6] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 17.
- [7] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 28.
- [8] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 29.
- [9] AIA TMD (Aug 2026), PDF page 1.
- [10] Zurich Wealth Protection PDS and policy conditions (Nov 2025), PDF page 8.
- [11] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 35.
- [12] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 41.
- [13] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 163.
- [14] Zurich Wealth Protection PDS and policy conditions (Nov 2025), PDF page 72.
- [15] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 58.
- [16] MetLife TMD (Nov 2025), PDF page 3.
- [17] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 86.
- [18] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 85.
- [19] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 87.
- [20] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 26.
- [21] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 27.
Just so you know, Tony Insurance operates under Sustainable Life Solutions (AFSL 536966) and can only give general advice about life insurance. That means we'll tell you what you need to know for you to make a good decision, but we can't give you specific advice or recommendations. It also means that everything on our website is only general information and isn't specific to you.
Toni Smilevski, Authorised Representative 343156 of Sustainable Life Solutions Pty Ltd (AFSL 536966)