What is FIFO Life Insurance?
Life insurance pays a lump sum to your family if you die or are diagnosed with a terminal illness. For FIFO workers, this typically means enough to clear the mortgage, replace your income for years to come, cover school fees, and give your family a financial foundation without your site wage coming in.
The challenge for FIFO workers is that standard life insurance products are designed for office workers. They don't account for the hazardous nature of mining, oil & gas, or remote construction — which means many policies carry exclusions or heavy premium loadings for high-risk occupations if you go through the wrong insurer.
How Much Life Cover Do FIFO Workers Need?
A common starting point is 10–15 times your annual income, but the right number depends on your specific situation. Key factors include:
- Your outstanding mortgage and other debts
- Your income and how many years until your family is financially independent
- Number of dependants and their ages
- Existing super balance and any cover held inside super
- Your partner's income and ability to support the family alone
Use our free calculator to get a personalised estimate based on your actual numbers.
The average FIFO worker earns $120,000–$180,000 per year. If you're on a 2/1 roster and your family relies on that income, a $2M life cover policy might cost as little as $60–$100/month for a healthy non-smoker in their 30s. That's less than a tank of fuel per week.
Why Standard Life Insurance Fails FIFO Workers
Not all insurers treat FIFO occupations the same. Some common problems:
- Occupation exclusions — some policies exclude deaths or disabilities related to your specific job duties
- High premium loadings — underground miners, drillers, and offshore workers are often hit with 50–200% premium loadings by generic insurers
- Fly-in exclusions — some policies have exclusions around light aircraft or helicopter travel, which is a daily reality for many FIFO workers
- Income underestimation — site allowances, LAFHA, and overtime aren't always counted as insurable income
What to Look for in a FIFO Life Insurance Policy
- Clear occupation coverage with no blanket exclusions for your role
- Indexation — cover that increases with inflation each year
- Guaranteed renewable — insurer can't cancel your policy if your health changes
- Terminal illness benefit — pays out early if you have less than 24 months to live
- Ability to hold inside or outside super depending on what's best for your tax situation
FIFO Life Insurance Inside vs Outside Super
Most FIFO workers have some default life insurance inside their super fund already — but it's rarely enough, and the definitions and coverage are often weaker than retail policies.
Inside super: Premiums come from your super balance (no out-of-pocket cost), but benefit periods and definitions may be restricted, and the payout goes to your super fund first before reaching your family.
Outside super: Premiums come from your take-home pay (not tax deductible for life cover), but you get stronger definitions, higher cover limits, and the money goes directly to your nominated beneficiary.
Many FIFO workers end up with a combination — a base level inside super, topped up with a retail policy outside super. Your adviser will work out the most tax-effective split.
Most super funds provide a default of $200,000–$400,000 in life cover. For a FIFO worker with a mortgage, young kids, and a $150k+ income, that's a fraction of what your family would actually need. Get it reviewed.
How to Get FIFO Life Insurance in Australia
The best way is through a licensed financial adviser who specialises in FIFO and hazardous occupation insurance. They can compare policies from multiple insurers — including Neos, Encompass, Futura, AIA, Zurich, and more — and find the one that covers your occupation properly without unnecessary loadings.
Request a free callback and a Nexa specialist will call you within 1 business day, ask the right questions, and give you a comparison across the market.