Compare life insurance in Australia

How we calculate Life Insurance Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These products offer great value, with a good score across both features and price.

7+

Great

These are competitive products, though they didn't quite get top scores.

5+

Standard

These products might offer less value or command a higher premium than others in the market.

0+

Basic

These products might only offer a basic set of features or aren't very competitive on price.

Thousands of people compare with Finder every month

4.69 average rating from 805 reviews

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How much does life insurance cost?

The average cost of a life insurance policy is $1,258 annually, according to Finder research of 11 providers.

The cost of your life insurance premium will depend on the following:

• • Your age
  • Your health and any pre-existing conditions
  • Your lifestyle choices, for example, if you're a smoker or if you exercise regularly
  • The level of cover you choose
  • How many optional extras you do or don't add on

The cost of life insurance is highly dependent on personal factors so your own annual premium is likely to be different to our average cost. This information should be used as a guide only.

Other types of life insurance

Total and permanent disability (TPD)

TPD covers you if you get severely injured or sick. For example, if you become blind or paralysed after a car accident and become permanently disabled.
Typical cover range:$50,000 to $5 million.

Trauma insurance

Trauma cover, sometimes called critical illness cover, is a policy add-on that pays a lump sum if you're diagnosed with a major medical condition, such as cancer or a heart attack.
Typical cover range:$500,000 to $2 million.

Income protection

Income protection insurance pays a monthly benefit if you're unable to work due to illness or injury. Usually, it will only pay up to 70% or 75% of your typical wage for a period of 2 or 5 years.

"I've never really thought about my life insurance, but after having a baby and buying a house in the same year I felt now was the time I needed to take out cover. Having a policy that would cover my mortgage payments is one less thing I now need to worry about."

Alex Holderness

Finder's head of publishing, parent and homeowner

FAQs

• Which insurance company is best for life insurance?

  The best life insurance for you will depend on your personal profile and budget, however, we've done some research to help get you started. In 2024, TAL life insurance was the winner of our best life insurance award. This is because TAL offers competitive pricing and extensive benefit limits. In short; it's well priced for such a good product.
  Keep in mind, you should always get your own quote and read through the product disclosure statement to know if this product offers the kind of coverage you're looking for.

• Is it worth getting life insurance?

  To be straight with you, only you can answer this one. Life insurance is one of those products you hope you never have to use because for it to ever be used, something terrible has to happen first. However, you may deem it 'worth it' for the peace of mind it brings you and your family. Life insurance can cover the cost of major debts like your mortgage in the event you're unable to do so yourself. For many, knowing your family would be financially stable in the event of your passing makes life insurance worth it. If you're not sure whether or not life insurance is necessary for you, this article can help you assess your needs and what your family would need in the event of your passing.

• Who gets a life insurance payout?

  A life insurance payout goes to the beneficiary; this is the person you choose at the time of taking out your policy. In the event of your death, the beneficiary — which can be 1 person or a selection of people — would get the payout.

• What happens if I cancel my life insurance?

  If you cancel your life insurance, you will no longer be covered as of the date you cancel. If you've paid your premium in advance then you may be refunded for the unused portion of it, minus any cancellation fees you may owe.

• Is it better to get a life insurance policy inside or outside of super?

  It's an individual assessment depending on your cashflow, retirement funding and tax situation. While it's often cheaper and easier to hold life insurance within super, it reduces the amount in your retirement fund. Additionally, the payout is usually small and the policies typically expire when you turn 65. With a traditional life insurance policy, the expiry age is usually around 99 or there is no expiry age at all, as long as you keep paying your premiums.

• I have a pre-existing condition. Can I still get life insurance?

  Yes, it is possible. If you have a pre-existing medical condition, there are insurers who will still cover you. But they might ask you to pay slightly higher premiums or exclude that condition from your cover. It's really important to disclose any condition you have when you apply for life insurance. Not doing so could void your cover.

• What is child life insurance?

  Child life insurance is a feature you can add to your life insurance policy for an added fee. It will pay out a financial benefit if your child dies or suffers a serious medical condition.

What is the Finder Score?

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other.

We have assessed over 30 products and assign each product a score out of 10 based on 13 features, including price.

Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.

To be eligible for a Finder Score, providers must provide us with quotes. We use the average price across 12 personas. The personas we collect quotes and use for the purpose of Finder Score are:

• Personas to calculate average price

  Age	Gender	Smoker/Non Smoker
  25	Male	Non Smoker
  35	Male	Non Smoker
  45	Male	Non Smoker
  25	Female	Non Smoker
  35	Female	Non Smoker
  45	Female	Non Smoker
  25	Male	Smoker
  35	Male	Smoker
  45	Male	Smoker
  25	Female	Smoker
  35	Female	Smoker
  45	Female	Smoker

• Finder Score weightings

  Feature	Weights
  Price	40.0%
  Interim Accident Cover	5.0%
  Optional TPD Cover	2.5%
  Optional Trauma Cover	2.5%
  Guaranteed Renewability	5.0%
  Counselling	5.0%
  Child Benefit	5.0%
  Future Insurability	5.0%
  Online Quotation	5.0%
  Repayment Methods	2.5%
  Serious Illness	2.5%
  Terminal Illness	5.0%
  Maximum Cover	10.0%
  Funeral Benefits	2.5%
  Claims finalised	5.0%

The Finder Score methodology is designed by our insights team and reviewed by our editorial team. We review the products objectively. Commercial partnerships do not affect the score.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal and reviewed by Karen Eley, a member of Finder's Editorial Review Board.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 597 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 186 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips