- Top pick: Features
- Top pick: Budget policy
- Top pick: Claims experience
Best Life Insurance in Australia
We scored 21 direct policies on price, features and add-ons. Find the plans that came top for best life insurance.
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Finder Awards 2021: Our top 3 picks
Want options? We've got you. The table below shows the 3 highest-scoring life insurance brands (out of 21) overall in the 2021 Finder Award for Best Life Insurance.
Why trust our picks?
We scored policies based on more than 10 different factors including price, specific benefits, claims outcomes and extra features. Using 16 different customer profiles, we sourced quotes from 21 different insurance brands to help us settle on our top picks in 5 key categories.
Finder Awards: Best Life Insurance
Winner: Best Life Insurance Australia
Why do we think it's the best?
NobleOak won the Finder Award for Best Life Insurance in 2021 for a third year running. With high scores in pricing and features, it's an all-rounder that works for thousands of Aussies.
Top picks for direct life insurance across 5 categories
Using data from our Awards research, we selected some of the stand-out brands you need to know about. Keep in mind that prices, features and your suitability for life insurance will vary based on your individual circumstances.
- Best policy for competitive pricing: NobleOak
- Best policy for over 50s: TAL
- Best policy for families with kids: Guardian
- Best policy for claims experience: NobleOak
- Best policy for lifestyle rewards: AIA
Best for competitive pricing – NobleOak
Whether you're in your 20s or your later years, NobleOak is likely to have something for you.
- At $81.16 per month on average, NobleOak offered the cheapest policy*.
- NobleOak also had a maximum sum insured of up to $15,000,000. This was 6 times higher than any of the other 15 other brands we looked at.
- It was 1 of only 2 insurers that offer a fully underwritten policy (the other was Zurich).
HBF came second with an average price of $94.29 per month, while ANZ was placed third at $95.56 monthly.
Read more on the benefits and features offered by NobleOak.
*We requested quotes from 16 different insurers, using 8 different smoker profiles. All figures shown here are average costs for $500,000 of cover for a non-smoker. We also took into account policy features – the more valuable the features, the higher the overall score.
Best for over 50s – TAL
TAL is our pick as it's a brand that tailors its policies to meet the needs of older Australians:
- TAL will cover 74-year-olds, while several insurers only offered a maximum entry age of 64.
- TAL offers a comparatively high policy expiry age of 100.
- You can also choose a comparatively high funeral benefit of $25,000 with this provider.
Read more on the features and benefits of TAL.
Best policy for families with kids – Guardian
If you're looking to add cover for your children, you can get insurance in the event of a serious medical conditions or passing.
We selected Guardian as our best pick for families* for the second year running as:
- It was 1 of only 6 brands to offer opt-in cover for children of up to $50,000.
- It was 1 of only 5 brands to offer premium suspension for financial hardship, which could be very helpful for parents.
- Guardian covers the most serious injuries or illnesses compared with other providers we analysed.
Find out more about Guardian Life Insurance in our review.
*We looked at 21 brands and 6 of those offered child cover. Most offer cover up to $50,000 for each child so we also reviewed the number of conditions covered. We awarded each insurance brand a score that correlates to its performance across all categories.
Best for claims experience – NobleOak
We chose this category based on the latest bi-annual claims data from Moneysmart, a government site run by the Australian Securities & Investments Commission (ASIC).
NobleOak took the spoils for its claims experience* because:
- It scored an impressive 98.1% paid claims rate. This was higher than the industry average of 91.5%.
- Westpac came in second, paying 95.7% of claims, while OnePath was third with 95.5%.
- NobleOak also registered 0 disputes per 100,000 lives insured – the industry average was 16.9 disputes.
- NobleOak also had a claims processing time of just 1.1 months. This was less than half as long as the industry average of 2.8 months.
*The Moneysmart figures are for Death Cover bought directly from an insurer between 1 July 2020 and 30 June 2021.
Best for lifestyle rewards – AIA
We chose AIA Life Insurance for its flagship wellbeing program, AIA Vitality. By signing up to a life cover plan with AIA, you'll enjoy automatic eligibility for the rewards. It means you can:
- Score an immediate discount of 12.5% on your policy by signing up.
- Stay active and unlock a host of lifestyle rewards with your membership.
- These include up to 50% cashback on Virgin Australia and Singapore Airlines flights; 50% savings on gym memberships at Virgin Active and Fitness First; movie vouchers; spa and beauty e-Gift cards, and more.
Other reward schemes we liked were OnePath/Qantas frequent flyer points and TAL Health Sense, both of which you can read more about in our guide to life insurance rewards programs.
What is the best life insurance?
There isn't a single life insurance policy that's the "best". However, there are useful tips for finding the best life insurance for your needs.
5 tips for finding the best policy for you
Work out the cover benefits you need
Be clear on what you're looking for. Do you want a significant lump sum payout to make sure your family's looked after if you die or suffer a terminal illness? Is it important your policy comes with a funeral benefit that pays out quickly? Are you aware that taking out joint cover with your partner could unlock a premium discount of up to 10%?
Pick the right cover amount
Work out how much your family would need to get by – and maintain their lifestyle – if you were no longer around. Knowing how much life insurance you need means you'll avoid paying more than you should. Try our quick quiz to help you calculate how much cover you'll need.
Compare multiple policies
Use Finder's comparison tool to compare life insurance brands. View each policy's key features side by side and filter by the features that matter most to you. Or click "View details" to see a more in-depth breakdown of each policy. If you're not certain what you need or how to find the best cover, speak to a life insurance adviser.
Be correct in your application
You'll need to be upfront if you smoke or have any pre-existing conditions. Not being accurate during your application can invalidate your policy. This means you or your beneficiaries could have a future claim rejected.
Read the Product Disclosure Statement (PDS)
The PDS (found on the insurer's website) contains the key points about your policy including its benefits, restrictions and exclusions. Knowing exactly what you're insured for will bring peace of mind. Thankfully, insurers are getting better at writing them without all the jargon.
Need more help?
Life insurance is a big decision, but we've got heaps of guides that can help you find good cover for your needs.
More of your frequently asked questions answered
More guides on Finder
Do I need life insurance?
Learn about the different types of life insurance available in Australia, and when you might need to take out cover.
Is life insurance worth it?
Having the right life insurance policy is invaluable if something happens to you unexpectedly. Find out what makes your policy worthwhile.
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