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Life insurance in Australia is officially more than 180 years old. The first policy was sold by Asteron, then known as Alliance Assurance, and countless others have followed since. Today there are more than 20 active providers in Australia’s life insurance marketplace, edging each other out with competitive pricing, discounts and additional benefits.
Get quotes from Australia's life insurance providers
It has its ups and downs, but here's a snapshot of Australia's growing life insurance market.
Source: Strategic Insight 2018
When assessing a brand, consider:
Brand | Type of brand | Key features | Apply |
---|---|---|---|
AAMI | General insurance company | Easy to adjust later on, strong customer service record | More info |
AIA | International health insurance specialist | Superannuation options, many available policies | More info |
AMP | Financial services provider and insurer | Strong investment focus, highly tailored plans | More info |
Asteron Life | Financial planning services and life insurance | Expert advice, policies to fit long-term financial plans | More info |
Aussie Insurance | Australian lender and insurer | Competitive prices and widely varied products | More info |
BT | Westpac-owned financial services provider | Easily upgradeable policies, integrated financial planning | More info |
Bank of Queensland | Holistic financial services company, Australia-wide | Competitive prices and accessible policies | More info |
Bendigo Bank | Holistic financial services company, Australia-wide | Clearly tiered policies, affordable cover for children | More info |
Bupa | International healthcare provider | Wide variety of plans and options | More info |
CGU | Financial products and services provider | Competitive prices through tailored policies | More info |
Citibank | Large worldwide financial services provider | Many options, including quick policies that require no medical tests | More info |
CommInsure | Commonwealth Bank insurance division | Extra benefits for financial planning, varied policies | More info |
GIO | Suncorp-owned general insurance provider | Tailored policies, no medical tests, expanded cover options | More info |
Guardian | Dedicated life insurance provider | Up to $1.5 million sum insured, no medical or blood tests | More info |
HSBC | Global financial services company | Policy flexibility, many options available | More info |
InsuranceLine | Income, life and funeral insurance specialists | Low entry requirements with basic policies, periodic discounts | More info |
Macquarie | Holistic financial services provider | Policies that pay benefits based on the impact of an injury or illness rather than its categorisation | More info |
Medibank | Healthcare and health insurance provider | Varied options, including policies that require no medical or blood tests | More info |
MLC | Investment and financial services provider | Policies include superannuation rollover options, flexible premium options | More info |
NAB | Banking and financial services provider | Access to a very wide network of doctors and hospitals | More info |
nib | Healthcare and insurance provider | Extra benefits for nib members | More info |
NobleOak Life Insurance | Life insurance specialist | Fully underwritten cover | More info |
OnePath | Insurance provider with a focus on life cover | Extra cover while travelling, guaranteed renewability | More info |
Real Insurance | General insurance provider | Separate family cover, flexible premium options, competitive prices | More info |
Virgin Money | Financial services provider | Flexibly tailored policies, options for with or without medical tests | More info |
Woolworths | Supermarket, financial services and more | Maximum sum insured increases with age, no medical tests required | More info |
Zurich | Financial services with a focus on investment and insurance | Death benefits can be increased annually without reassessment, up to $1.5 million sum insured | More info |
Note: While we make every effort to keep this list of Australian life insurance brands updated, it may not always show every brand in the market as new brands are created, others merge and so on.
The top 5 performing insurers in the Australian life insurance market according to the Australian Prudential Regulation Authority (APRA) December 2018 report are:
Rank | Insurer | Total assets ($billion) | Market share |
1 | AMP Life Limited | 98 | 43.6% |
2 | OnePath Life Limited | 42 | 18.7% |
3 | Challenger Life Company Limited | 19 | 8.5% |
4 | The Colonial Mutual Life Assurance Society Limited | 13 | 5.5% |
5 | Westpac Life Insurance Services Limited | 10 | 4.2% |
Term life insurance is sometimes called death only cover because it pays your loved ones a lump sum payment when you die. The money can then be used to pay for any final expenses your family might have upon your death, such as funeral and medical expenses, mortgages, and death. It will help them with the emotional transition without worrying too much about the finances. Aside from this, other popular insurance products available to Australians are income protection, trauma insurance, and TPD insurance.
If you’re temporarily unable to work on account of injury or illness, income protection insurance pays 75% of your monthly gross income until you can return to work or the policy expires.
Total and permanent disability insurance, or TPD, pays a lump-sum benefit if you become totally and permanently disabled from injury or illness.
Trauma insurance pays out upon diagnosis of a critical illness, if you suffer a critical injury or undergo certain medical procedures. This option does not pay for fatal conditions – only core life insurance does. A waiting period of two weeks usually applies to ensure that you survive the event.
Superannuation is compulsory for all employees working in Australia. It often comes bundled with life insurance, so this should be taken into consideration when looking at policies.
If you haven’t already, you should check whether your superannuation fund already includes life insurance. You might already have a life insurance policy you didn’t know about, or you might discover a great option to consider alongside other policies.
If you’re thinking of getting life insurance through superannuation, watch out for both the benefits and the downsides.
Even if you decide not to get a life insurance policy through superannuation, it’s important to at least check your fund to see what kind of insurance is available, if any, and to confirm whether or not you’re already paying for life insurance without knowing it.
You can find and compare policies either by looking at direct brands, which are insurers that advertise and sell directly to policy holders, or by going through an insurance broker or adviser. Depending on your situation, you may find one more preferable than the other.
Life insurance is something you hope you’ll never use, designed specifically to protect against the unexpected. Naturally this makes it difficult to plan for a “return on investment”. Every year, however, tens of thousands of Australians claim billions of dollars on life, trauma, TPD and income protection insurance policies, despite hoping they’d never have to. When considering the benefits of having a policy, think in real terms of what it actually means for you and your family rather than only as numbers on paper.
An adviser can help you find cover from trusted life insurance brands.
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