Cheap life insurance doesn't have to mean low quality. We compared 11 brands and found the three providers that consistently offered the most competitive prices alongside strong policy features.
Cheap life insurance - 1st place
TAL Accelerated Protection Life Insurance
Our verdict
TAL is definitely worth looking into. It's affordable, with industry-leading benefits and most claims are settled very quickly.
Pros
TAL was the only brand we compared that doesn't limit your death benefit amount, as long as it's "financially justifiable".
Of the 11 brands we compared, TAL was the cheapest on average, according to Finder research.
More than 60% of TAL claims were paid out within 2 weeks - the most of any brand.
Cons
TAL's maximum entry age is 74. This is higher than average, but some brands allow entry up to 79.
TAL declined 12.4% of claims in the first half of 2024 - more than any other brand.
There's no discounts for buying online or holding multiple TAL policies.
Provider
Average cost
Finder score
Max cover
Funeral benefit
Claims acceptance rate*
Customer satisfaction rating
TAL
$70.63
9.9 / 10
$25,000
87.6%
N/A
NobleOak
$75.03
9.5 / 10
$25,000,000
$25,000
98.8%
N/A
Budget Direct
$74.90
9.7 / 10
$25,000,000
$25,000
98.8%
4.01 / 5
*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.
Claims acceptance rate. TAL's claim acceptance rate of 87.6% is lower than the industry average of 91%. Claims processing time. The average time for a claim to be processed is 2.7 weeks - exactly the same as industry average. How to make a claim. If you need to make a claim with TAL, you should call 1800 100 016. The line is open Monday to Friday, 8.30am to 5.30pm (AEST). Alternatively, you can email claims@tal.com.au.
Budget Direct is underwritten by NobleOak so a lot of the same benefits apply in terms of pricing, claims acceptance and processing time. It's another great option for those who want a cheaper option that still offers comparatively strong cover.
Pros
Of the 11 brands we compared, Budget Direct came in second for affordability.
Budget Direct has a maximum death benefit limit of $25 million - more than the majority of other brands we compared.
Budget Direct's average claim time of 1.9 months is faster than the 2.7 industry average.
Cons
The maximum entry age for Budget Direct policy is 69 - but some brands allow entry up to 79.
Budget Direct doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
Funeral advancement is only $25,000. It should be enough for most but TAL and Australian Seniors both have higher benefits.
Provider
Average cost
Finder score
Max cover
Funeral benefit
Claims acceptance rate*
Customer satisfaction rating
Budget Direct
$74.90
9.7 / 10
$25,000,000
$25,000
98.8%
4.01 / 5
NobleOak
$75.03
9.5 / 10
$25,000,000
$25,000
98.8%
N/A
TAL
$70.63
9.9 / 10
$25,000
87.6%
N/A
*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.
Claims acceptance rate. Budget Direct has an excellent claims acceptance rate of 98.8% - higher than the industry average of 91.1%. Claims processing time. The average claim processing time is 1.9 months - faster than the 2.7 industry average. How to make a claim. If you need to make a claim with Budget Direct, you can call 1300 220 627. Budget Direct's life insurance is provided by NobleOak, so the claims process will likely be managed primarily with them.
NobleOak is great for those who are looking for a great value life insurance policy. It offers a higher maximum cover limit than some other providers, has a brilliant claims acceptance rate as well as a faster claim payout time, yet it remains one of the cheaper brands on the market.
Pros
NobleOak has a high maximum death benefit limit of $25 million - most brands cap payouts at between $1m and $2.5 million.
Of the 11 brands we compared, NobleOak came in third for affordability.
On average, Noble Oak's claim times were 1.9 months - faster than the 2.7 average.
Cons
NobleOak doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
It only offers stepped premiums, which increase in price as you age.
The funeral benefit is a generous $15,000, but some brands offer up to $25,000.
Provider
Average cost
Finder score
Max cover
Funeral benefit
Claims acceptance rate*
Customer satisfaction rating
NobleOak
$75.03
9.5 / 10
$25,000,000
$25,000
98.8%
N/A
TAL
$70.63
9.9 / 10
$25,000
87.6%
N/A
Budget Direct
$74.90
9.7 / 10
$25,000,000
$25,000
98.8%
4.01 / 5
*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.
Claims acceptance rate. NobleOak has an excellent claims acceptance rate of 98.8% - higher than the industry average of 91.1%. Claims processing time. The average claim processing time is 1.9 months - faster than the 2.7 industry average. How to make a claim. If you need to make a claim with NobleOak, you can call 1300 551 044. Alternatively, you can contact the Claims Team via an online form on NobleOak's website.
TAL was the cheapest on average in our research at $70.63 per month.
The amount of cover you choose is the biggest factor in the price you pay.
Policies with stepped premiums are cheaper initially but increase significantly as you get older.
How much does cheap life insurance cost?
The cost of life insurance depends entirely on your personal circumstances and the level of cover you choose. For a basic policy with $500,000 of cover, a younger, healthy person might pay as little as $30 a month. For an older person or a smoker, that same policy could cost over $150 a month.
In our most recent survey, Australians reported paying an average of $154 per month for their life insurance. However, by comparing policies, you may be able to find cover for much less.
What's covered by a basic life insurance policy?
Life insurance pays a lump sum benefit to your family when you die. Most policies also include a few key benefits at no extra cost.
Terminal illness benefit. Allows you to receive your benefit as an advance payment if you are diagnosed with a terminal illness and are expected to pass away within a set timeframe, usually 12 or 24 months.
Funeral advance benefit. Your family can receive a portion of the benefit amount immediately after you die to help cover funeral expenses without having to wait for the full claim to be processed.
Counselling benefit. Some policies include a benefit to help your family pay for grief counselling services.
Optional cover. You can also choose to add other types of insurance to your life policy, such as Total and Permanent Disability (TPD), Trauma Insurance or Income Protection, for an additional cost.
How much are Australians spending on life insurance?
Every month, we ask a bunch of Aussies what they're paying for their life insurance. Here's what their bill looked like in March 2026.
$154
Price based on 160 responses about their monthly premium in March 2026.
What affects the cost of your life insurance?
Insurers look at a range of factors to calculate your risk and determine your premium.
Your age and gender. Premiums are lower when you're younger and generally cost less for women.
Your health and lifestyle. Insurers will ask about your medical history. Smokers can expect to pay at least double what a non-smoker pays.
Your job. If you work in a high-risk occupation, such as a trade, your premiums will be higher.
The cover amount. This is the biggest factor. A $1 million policy will cost more than a $250,000 policy.
The type of premium. Stepped premiums start cheaper but increase each year, while level premiums start higher but remain more stable over time.
How can I find an affordable life insurance policy?
Compare policies. Our research showed some brands were more than twice the price of others for similar cover. Shopping around is the single most effective way to save.
Choose the right cover amount. Lowering your benefit amount is the fastest way to reduce your premium. Calculate the minimum your family would need to cover debts and living costs.
Live a healthier lifestyle. Quitting smoking is the most significant change you can make to lower your premiums. Some insurers also offer discounts through health and wellness programs.
Consider cover through super. Life insurance inside your superannuation fund can be cheaper because the fund buys policies in bulk. However, the cover is often basic and may not be enough for your needs.
Pay annually. Many insurers offer a small discount if you pay your premium for the whole year upfront instead of in monthly instalments.
"I cancelled the life insurance inside my super because it eating into my retirement savings, it would have expired when I turned 65 and the premiums were going up every year. I found it was much better value to get a standalone life insurance policy by choosing level premiums and the payout amount myself."
Based on our analysis of 170 quotes, TAL offered the cheapest life insurance on average. However, the cheapest provider for you will depend on your own age, health and the amount of cover you need. The only way to know for sure is to get quotes from several different insurers.
Life insurance is worth considering if you have a partner, children or other relatives who depend on your income. It provides a financial safety net that can help your loved ones pay for mortgage, bills and other living costs if you were to pass away unexpectedly.
Not always. The cheapest policy might have a lower benefit amount, more exclusions or a lower claims-paid rate than a slightly more expensive one. It's important to balance cost with features to make sure the policy provides adequate protection for your family.
Stepped premiums are recalculated each year based on your age, so they start cheap but become more expensive over time. Level premiums are averaged out over the life of the policy, so they cost more initially but don't increase as dramatically as you get older. A policy with stepped premiums is often cheaper in the short term.
Yes, many direct life insurance policies can be taken out online or over the phone without a full medical exam. You will still need to answer a series of questions about your health and lifestyle. Insurers may request more information or a check-up if you disclose a pre-existing medical condition.
Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards.
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Find out what determines the price of life insurance and what you can expect to pay each week to be covered.
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TAL Accelerated Protection Life Insurance
Budget Direct Life Insurance
NobleOak Life Insurance
