Looking for life insurance that's been tested and stands above the rest? You've come to the right place.
The "best" life insurance policy depends largely on your personal circumstances. To give you a better idea however, we've done the hard yards. We examined and scored 11 providers and 22 policies (not the entire market, but a large portion of it), to find the 1) Best Life Insurance Policy and 2) Best Life Insurance Provider.
- Best Life Insurance Policy: NobleOak Life Insurance
- Best Life Insurance Provider: AIA Life Insurance
Compare the best life insurance for 2019
|NobleOak Life Insurance||
|AIA Life Insurance||
Best life insurance policy in table above is based on a comparison of direct life insurance policies . To see our full methodology and as well as our score for all policies, continue reading our study below.
The best life insurance (full comparison tables)
How did we find the best life insurers?
Scored on their features
Scored on claims outcomes
50+ hours of research
Our insurance experts spent the time assessing the data and looking at what was important for someone buying life insurance
Choosing the best policy
In January 2019, we reviewed the products from 22 Australian life insurance brands (11 direct and 11 retail brands) and rated them out of 5. Here's how we came up with those scores.
Choosing the best provider
We simply looked at who had the lowest chance of a claim dispute using 2018 data from The Financial Ombudsman Service (FOS) - an Australian external dispute resolution service for when it comes to financial products like insurance. This year's data is missing a few insurers so as it get's updated, we'll update this page too.
Here's who we rated as the best life insurers in 2019.
Strong features and high sum insured
NobleOak Life Insurance
Up to $15 million in life cover and fully underwritten medically.
- Flexibility to increase cover, without another medical assessment
- Full underwritten cover so there's no surprises at claims time
- Counselling benefit
- No level premiums offered so your premium will go up as you get older
All around comprehensive cover
OnePath OneCare Life Cover
No cover limit (subject to approval) and flexible premium options.
- Flexibility to increase cover for a large range of circumstances, without another medical assessment
- Terminal illness accommodation benefit offered
- Option to waive your premiums if you become disabled
- Minimum sum insured for death and TPD cover is $50,000 (some brands are more flexible e.g. have no minimum)
Confidence during claim time
AIA Life Insurance
Lowest percentage of claim disputes in 2017
- Level premium options offered
- Complimentary child insurance
- AIA Vitality health program available to reduce premiums and get gym discounts
- No counselling benefit
AIA Life Insurance topped our list as the best life insurer in regard to claims outcomes. In order to come up with this metric we look at 2018 figures from the Financial Ombudsman Service Australia (FOS) to find out which insurer had the lowest chance of dispute and which insurer settled the dispute before it reached an advanced stage.
Brands such as AIA Priority Protection and Citibank Prime Life Insurance, both of which are backed by AIA Life Insurance, topped our rankings.
- TAL Life Limited. TAL brands include Insuranceline Life Insurance, TAL Lifetime, Protection, Virgin Money Life Insurance, Qantas Life Insurance and NIB Life Insurance.
- Westpac Life Insurance Services Limited. Westpac brands include BT Life Insurance and Westpac Life Life Insurance.
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What life insurance companies are there in Australia?
At the time of publishing, there were 29 life insurance companies in Australia. Included, is what we've rated as the best.
- AIA Australia Limited
- Allianz Australia Life Insurance Limited
- AMP Life Limited
- Challenger Life Company Limited
- ClearView Life Assurance Limited
- Colonial Life Insurance Company of Australia Ltd
- Combined Life Insurance Company of Australia Ltd
- General Reinsurance Life Australia Ltd
- Hallmark Life Insurance Company Ltd
- Hannover Life Re of Australasia Ltd
- HCF Life Insurance Company Pty Limited
- Macquarie Life Limited
- Integrity Life Australia Limited
- MetLife Insurance Limited
- MLC Limited
- Munich Reinsurance Company of Australia Limited
- OnePath Life Limited
- Pacific Life Re (Australia) Pty Limited
- QInsure Limited
- RGA Reinsurance Company of Australia Limited
- SCOR Global Life Australia Pty Limited
- St Andrew's Life Insurance Pty Ltd
- St. George Life Limited
- Suncorp Life & Superannuation Limited
- Swiss Re Life & Health Australia Limited
- Tal Life Limited
- The National Mutual Life Association of Australasia Limited
- Westpac Life Insurance Services Limited
- Zurich Australia Limited
If you want more information before making your decision, you can also look at things like:
- Market share
- Customer satisfaction
- Financial rating
Strongest financial rating (2017)
- Source: Standard & Poors. Learn more.
|Life Insurer||Market Share||Average premium||Policy|
|1. TAL Life Limited||17.80%||$23.48||Accelerated Protection|
|2. AIA Australia Limited||15.50%||$21.57||Priority Protection|
|3. MLC Limited||11.80%||$25.58||Life Cover|
|4. AMP Group||11.40%||$26.41||AMP Elevate|
|5. OnePath Australia Group||10.0%||$30.14||OnePath OneCare|
|6. CommInsure Group||8.0%||$29.72||CommInsure Protection|
|7. BT / Westpac Group||7.80%||$33.53||BT Protection Plan|
|8. Suncorp Group||5.0%||n/a||n/a|
|9. Zurich Group||4.20%||$30.11||Zurich Wealth Protection|
|10. MetLife Insurance||4.0%||n/a||n/a|
Based on market share for the past 12 months ending in June 2018, Strategic Insight, 15 October 2018. Cost of premiums were taken from our quote engine.
Roy Morgan analysed 13 of the largest insurers in Australia and found the highest levels of customer satisfaction in Insuranceline, Allianz and AIA Australia.
|Life insurance brand||Customer satisfaction (2017)||Customer satisfaction (2016)||Change|
Roy Morgan Single Source (Australia) December 7 2017
Standard & Poors is an independent body that looks at the financial strength of life insurers in Australia. A company with solid financial solvency tells you how worthy they are from a credit standpoint. This gives you an idea of whether a company will be able to pay claims today and later down the track.
A triple A (AAA) rating is the highest available rating.
|AIA Australia Ltd||A+|
|Challenger Life Company Ltd.||A|
|Colonial Mutual Life Assurance Society Ltd. (The)||A+|
|MetLife Insurance Ltd.||A+|
|OnePath Life Ltd.||A+|
|Suncorp Life and Superannuation (Owner of Asteron Life Insurance).||A|
|Westpac Life Insurance Services Ltd.||A+|
|Hallmark Life Insurance Co. Ltd.||BBB+|
Standard & Poors conducted a study in November 2017
What do the rankings above mean?
- AA = Very strong financial security but more likely to be affected by adverse business conditions (vs an insurer with a AAA rating).
- A = Strong financial security but more likely be affected by adverse business conditions (vs insurers with higher ratings).
- BBB = Good financial security but more likely be affected by adverse business conditions (vs insurers with higher ratings).
Doing your own research? We asked various members of finder's insurance content team to find out which inclusions were the most important and why.
Richard Laycock - Insurance Editor:
1. A guaranteed future insurability benefit
"A guaranteed future insurability benefit allows you to increase the amount you're insured in the future as your life changes, for example if you get married or have children.
"The real advantage of having this inclusion is that you can increase your cover without having to take a medical reassessment. So if you develop a pre-existing medical condition after you have bought life insurance, you'd still be able to increase your cover.
Maurice Thach - Life Insurance Publisher:
2. Full underwriting (Lifestyle and medical questionnaire)
"If you have a pre-existing medical condition or a dangerous job then you'll want to ensure your cover is fully underwritten. This means your health is checked up-front. While it does take longer, it also means you'll get to know if you're covered when you apply instead of receiving a nasty surprise at claim time.
"Generally, life insurance you buy through an adviser will be fully underwritten. For policies that are direct, only some are fully underwritten".
Zahra Campbell-Avenell - Insurance Publisher:
3. A higher expiry age
"The expiry age is the age you reach where you're no longer covered. A higher expiry age means you'll be able to stay covered for longer meaning there's less chance of outliving your policy. Look for a higher expiry age to ensure the money you pay in premiums doesn't go to waste".
Richard Laycock - Insurance Editor:
4. A clear list of exclusions
"Not understanding what you're not covered for can be detrimental when you actually need to claim. Imagine suffering a major injury, then being knocked back because you didn't realise you weren't covered for the time period for where you worked previously".
Life insurance policies will always include a death benefit (life cover), which will pay a lump sum benefit in the event that you die.
However, you'll also need to decide which of the following extras you would also like to include (e.g. cover for situations like critical illnesses or permanent disability).Your life insurance policy can consist of one or more of the following:
|Other types of cover||Details|
|Total and permanent disablement (TPD)||If you suffer total and permanent disability your policy will pay out to cover home modifications, the expense of ongoing assistance, income cover and anything else you spend it on.|
|Trauma cover||Your life insurance policy will pay benefits if you suffer a defined health event listed in the policy, such as heart attack or stroke.|
|Income protection cover||A usually optional extra that can be bundled with life insurance to pay out a portion of your regular income (typically 70-80%) in the event of a sickness or injury that temporarily prevents you from being able to work.|
Although there a few choices out there, the best life insurance is dependant on your personal circumstances.
For instance, an insurer that has great cover for a 25 year old with no health conditions won't be the same for a father with a wife and three kids, who also smokes regularly.
There also some are some easy things you can do to find the policy that is most suitable for you:
The graph below shows the different insurance needs based on your life stage. This should only be used as a guide as requirements can change depending on your own situation.
Tip: Review your policy regularly
If you already have cover in place, you should review your policy regularly to ensure you are not overinsured or underinsured. Events that can affect your policy include:
- Marriage or divorce
- Buying a new home
- Children moving out or becoming financially independent
- Changes in health
Most advisers recommend that you review your life insurance policy at least once every 12 months. There may be additional or less cover needed.
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* The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.