If you are an Indian living in Australia, whether on a student visa, PR, work visa, or citizen one big financial question eventually pops up:
“Should I buy life insurance in Australia or continue with the one I bought in India?”
The answer isn’t the same for everyone.
It depends on your visa, how long you plan to stay, your dependants, and the type of cover you already have in India.
This guide breaks everything down in simple language, real-life migrant scenarios, and easy examples so you know exactly what works best for your situation.
Life Insurance in India vs Australia: Why It Matters Where You Buy It
Life insurance in India works very differently from how it works in Australia.
In India:
Many policies are hybrid plans (investment + insurance).
Term plans are available but not always the most popular.
Premiums are much cheaper due to population size and lower mortality assumptions.
Policies often require India-based medicals, income proof, and local bank accounts.
In Australia:
Life insurance is usually pure “term life insurance.”
The system focuses on big lump-sum protection, not investment.
Premiums are higher than India, but payouts are larger and better aligned to Australian cost of living.
You can have the cover through insurers or even through your super.
Example:
A ₹1 crore (AUD $180,000) term plan sounds big in India.
But in Australia, $180,000 barely covers one year of income + rent + basic expenses for a migrant family.
That’s why both price and relevance matter.
The Real Question: How Long Are You Planning to Stay in Australia?
If you’re here temporarily (student / temporary worker):
Keeping your existing Indian term plan may be enough if your dependants are all in India.
You can add a small Australian cover if you want local protection for liabilities like short-term debts.
If you’re settling long-term (PR / future citizen):
You should strongly consider an Australian life insurance policy, because:
Your family will be living here.
Your liabilities will be in Australia (mortgage, kids’ education, cost of living).
Your salary and lifestyle expectations match Australian financial risks.
| Feature | Term Insurance in India | Life Insurance in Australia |
|---|---|---|
| Annual premium | ₹6,000–₹15,000 (≈ AUD $120–$300) | AUD $400–$1,500 depending on age/health |
| Typical cover amount | ₹1–2 crore (AUD $180k–$350k) | $500k–$1.5M+ based on income and liabilities |
| Medical tests | Usually required | Often optional for smaller covers |
| Payout currency | INR | AUD |
| Best for | Dependants living in India | Families settled or settling in Australia |
Does a Cheaper Premium Matter If the Coverage Isn’t Enough?
Most Indians choose Indian life insurance because “premium is cheaper.”
Yes it is — but here’s the important part:
Australia is expensive. Your cover must be based on AUSTRALIAN liabilities.
Think about your life realistically:
If something happened to you tomorrow, what would your family need?
Mortgage or rent (Sydney/Melbourne average rent: $650–$780/week)
Living costs (avg family expenses: $4,000–$6,000/month)
Kids’ school fees, daycare, activities
Outstanding loans
Emergency savings
A basic rule:
Most Australian financial advisers recommend life cover worth 10–12 times your annual income.
Example:
If you earn $100,000
Your recommended cover = $1M to $1.2M
Compare that to your Indian ₹1 crore (AUD $180,000) cover — not even close.
Final Thoughts
If your life, salary, loans, partner, or kids are in Australia, then your life insurance must be in Australia too.
If your dependants and financial responsibilities are in India, then keeping your Indian term plan makes total sense.
Most migrants end up choosing:
👉 Indian term plan for parents + Australian life cover for spouse/kids here.
This gives full protection on both sides of the world.
