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Best life insurance Australia
To help you find the best life insurance policy for your needs, our insurance specialists selected policies based on price, claims data and value for money.
Top pick: Value
NobleOak Life Insurance
Finder Award
Comparatively low claims processing time
Choose up to $25 million in cover
2023 Finder Award winner
Top pick: 30-50yr olds
TAL Accelerated Protection Life Insurance
Finder Award
Cheapest policy on average
No set limit for maximum cover - only provider on the market to offer this
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Expert picks selected by Gary Ross Hunter – insurance and innovations editor at Finder
Top pick for value: NobleOak life insurance
93.2% of claims paid out in the latest period (life insurance bought directly through an insurer). That's higher than the industry average of 91.1%.
You can get up to $25 million in cover which is more than the industry average.
Above-average claims processing time of 1.1 months. The industry average is 2.8 months.
Only offers stepped premiums (increase as you age).
Out of 190+ quotes, TAL was typically cheaper on average.
NobleOak has a $25 million life insurance cap. TAL has no cap.
Optional Total and Permanent Disability (TPD) cover. Max cover $5 million Optional Trauma cover Claims acceptance rate: 96.90% Average claims processing time: 1.1 months Maximum cover amount: $25,000,000 Terminal illness benefit: $25,000,000 Funeral benefit: $15,000 Maximum entry age: 74
We selected NobleOak because it came in first place in our life insurance awards. It won for several reasons. You can get up to $25 million in cover which is more than the industry average. You can also get a policy up to the age of 74. Most stop offering cover at 65.
It also has a strong claims record. We sourced this information from Moneysmart's bi-annual claims data, a government site run by the Australian Securities & Investments Commission (ASIC). These latest figures shown – issued on 18 April 2023 – refer to death cover bought directly from an insurer between 1 January 2022 and 31 December 2022.
No cap on how much you can insure yourself for. All other insurers have a limit, including NobleOak ($25,000,000).
Zurich and NobleOak also offer cheap cover. They were a few dollars more expensive in our 2023 Finder Awards research.
Lower-than-average claims acceptance rate of 96.3%. The average is 97.7% (for life insurers bought through a financial advisor).
Optional Total and Permanent Disability (TPD) cover. Max cover $3 million Optional Trauma cover
Claims acceptance rate: Data not available
Average claims processing time: 1 months
Maximum cover amount: No set limit
Terminal illness benefit: Not stated Funeral benefit: $25,000 Maximum entry age: 73
We sourced quotes from 10 different insurers and reviewed pricing for both male and female smokers and non-smokers in NSW. In total, we ran more than 190 life insurance quotes. TAL was the cheapest brand overall, based on an average of 3 age groups in our research. The age groups were: 30-, 40- and 50-year-olds. All figures shown here are average costs for $500,000 cover.
Access RAC benefits – discounts on shopping, accommodation and money off fuel.
It's competitively priced, the third cheapest life insurance policy, according to our Finder Awards. However, TAL and NobleOak tend to be slightly cheaper.
Only offers stepped premiums (these increase as you age).
It has a $25 million benefit cap. TAL has no cap.
Optional Total and Permanent Disability (TPD) cover. Max cover $5 million Optional Trauma cover Claims acceptance rate: 96.90% Average claims processing time: 1.1 months Maximum cover amount: $25,000,000 Terminal illness benefit: $25,000,000 Funeral benefit: $15,000 Maximum entry age: 74
We analysed 200+ features across 10 different popular life insurance policies including NobleOak, TAL, Allianz, Insuraneline and Suncorp. RAC came out on top because it offers a higher terminal illness benefit limit and maximum cover benefit limit. You also get benefits as an RAC member. Aside from these benefits, NobleOak offers identical cover (it is the underwriter of RAC life insurance). In other words, if you want a little more for your money, you should consider RAC.
Top pick for claims experience: Zurich Ezicover life insurance
98% claims acceptance rate (policies sold through a financial advisor) – that's higher than any other life insurance in Australia.
Consistently one of the cheapest life insurance policies, according to our 2023 research.
Simple application process, plus a calculator that can help you estimate how much life insurance you might need.
No optional add-ons such as total permanent disability or trauma cover.
Unlike some insurers, it doesn't ask for any medical tests before or after your application. This sounds convenient but it can mean some exclusions are added to your policy.
It may refuse to cover you for certain conditions, including health issues.
No Total and Permanent Disability (TPD) cover No Trauma cover Claims acceptance rate: 98% Average claims processing time: 3 months Maximum cover amount: $1,500,000 Terminal illness benefit: $1,500,000 Funeral benefit: $15,000 Maximum entry age: 69
We looked at the latest 2023 Australian Prudential Regulation Authority (APRA) to select this expert pick. Zurich Ezicover had the largest claims acceptance rate. We didn't include TLIS in our records because we could not find any products in Australia where it is the underwriter.
Top pick for health support: Medibank life insurance
24/7 access to Medibank Nurse to talk about any health concerns.
Medibank health members save 10% every year.
Get up to $2.5 million in cover – that's $1 million more than AAMI, Suncorp, ahm, Insuranceline and Zurich.
$2.5 million cap is lower than NobleOak, RAC and TAL.
Discount only applies if you have Medibank health insurance.
Only offers stepped premiums (increase as you age).
Optional Total and Permanent Disability (TPD) cover. Max cover $1.5 million Optional Trauma cover
Claims acceptance rate: Data not available
Average claims processing time: Data not available Maximum cover amount: $2,500,000 Terminal illness benefit: $2,500,000 Funeral benefit: $15,000 Maximum entry age: 70
We selected Medibank because it's offering a potentially very helpful benefit that you can't get access to with any other life insurer we researched. It also gives you a discount if you're a Medibank health insurance member. ahm offers a similar discount but it doesn't have as high a maximum payout limit ($1.5 million).
Here's how our experts assessed the best life insurance category to pick the 2023 winner.
In total, we looked at 192 quotes. We then applied our algorithm to those 192 quotes to come up with an overall score for each brand. The highest-scoring brand was our winner.
Keep in mind: There's no single insurance brand that's best for everyone as all our needs are different – and what's best for you might not be best for someone else.
Selection and scoring
Quotes were obtained for a combination of the following profiles:
Age
Gender
Smoker
Occupation
40
Female
Yes
White collar worker
50
Male
No
White collar worker
50
Male
Yes
White collar worker
50
Female
No
White collar worker
50
Female
Yes
White collar worker
60
Male
No
White collar worker
60
Male
Yes
White collar worker
60
Female
Yes
White collar worker
60
Female
No
White collar worker
30
Male
No
White collar worker
30
Male
Yes
White collar worker
30
Female
No
White collar worker
30
Female
Yes
White collar worker
40
Male
No
White collar worker
40
Male
Yes
White collar worker
40
Female
No
White collar worker
Features were scored and weighted as follows:
Fully underwritten score
10%
Maximum sum insured score
15%
Guaranteed renewability score
10%
Expiry age score
15%
Counselling benefit score
5%
Premium cover suspension score
5%
Interim accident cover score
10%
Options score
10%
Funeral advancement score
5%
Maximum entry age score
15%
The resulting scores were weighted as follows:
Smoker quote score 10%
Non-smoker quote score 20%
Features score 70%
Get help finding the best life insurance
Our insurance experts have analysed popular life insurance policies to help you find the best life insurance policy for you and your loved ones. Our picks are based on 2023 Finder Awards, customer reviews and Australian Prudential Regulation Authority (APRA) data, an independent statutory authority that supervises various institutions including insurance. Keep in mind, what's best for you might not be best for someone else. You can use our top picks as a starting point, but you should find the best cover for your specific needs.
"Work out the cover benefits you need and 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? Knowing these answers before you dive into your research can help to narrow down the search."
"Pick the right cover amount by working 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."
Why compare life insurance with Finder?
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We've done 100+ hours of policy research to help you understand what you're comparing.
Life insurance glossary: Key terms to know
A rundown of the tricky definitions for life insurance. Plus, what to look for when you're comparing.
Beneficiary
The person you've nominated to receive your life insurance payment if you die or become terminally ill. You can nominate anyone as your beneficiary. There can be more than one beneficiary and each beneficiary can receive different amounts.
Children's insurance
Covers your child for death, terminal illness or a serious injury or illness that's specified in your policy. Typically, children's cover needs to be added as an optional extra.
Finder looked at 16 policies on our database and found just a few give you the option of adding a child to a policy.
Cooling-off period
The amount of time in which you can cancel your policy after signing up – and get a full refund of any premiums paid. The vast majority of insurers offer a cooling-off period of up to 30 days.
Counselling benefit
Some insurers will pay costs for grief counselling sessions for you or your partner. Counselling benefits usually have a limit of around $1,000. It can be claimed after a death or terminal illness claim.
Exclusion
An exclusion is any specific risk or event that you can't claim for under your policy. Insurers can apply exclusions to certain pre-existing medical conditions. For example, they may not cover any claims related to mental health.
Exclusion period
How long you'll have to hold your insurance before a policy exclusion turns into a claimable event. For example, it's common for suicide to have a 13-month exclusion period.
Fully underwritten
With a fully underwritten life insurance policy, your application is assessed upfront. Whereas a policy that isn't fully underwritten is assessed at the time of a claim.
Pays a lump sum benefit – usually up to $15,000 – so your loved ones can meet the cost of your burial or cremation without using their own money.
You could look for a funeral policy offering a guarantee that any payout won't be less than the total you've paid in premiums. This is sometimes called a premium guarantee.
Guaranteed acceptance
You can get insurance without having to answer any health questions, or take a medical exam or blood tests.
Guaranteed acceptance policies, also known as auto-acceptance policies, will have an age eligibility requirement. This can range between 16 and 80 years of age.
Guaranteed renewability
The insurer lets you renew your coverage each year, as long as you keep paying for your premiums. Many life insurers in Australia offer this peace of mind.
Income protection insurance
Income protection insurance pays a monthly wage if you need to take time off work due to a sudden accident or illness. Many insurers will pay up to 70% of your pre-tax income.
Inflation protection
This ensures your premiums keep up with inflation so that your amount of cover is worth as much by tomorrow's dollar. You can ask your insurer to switch off this automatic policy feature, but it could leave you underinsured.
Interim accident cover
Insures you while your life insurance application is being underwritten or waiting to be approved. Typically, interim insurance will cover you for up to 90 days.
Joint life insurance
A policy that covers 2 people, but it pays out once. A lump sum goes to the other policyholder in most cases.
Joint life insurance can be a cheaper option than 2 single policies. But it's potentially complicated if a relationship ends.
Level premium
Your insurance generally won't increase in price as you get older. You'll usually pay more in the beginning but it offers more certainty over time. Only a few direct insurers in Australia offer level premiums.
Loading
Essentially, you have to pay a bit more to include your health condition, job or hobby in your policy. Any loadings will be offered during the life insurance application process.
Minimum cover
The smallest amount of insurance (or, sum insured) you can take out. Many insurers in Australia set a minimum cover level of $100,000.
Maximum cover
The cover limit offered by an insurer. It's the most you can be paid out after a claim. Maximum cover limits can range from $500K to $25 million. TAL told Finder it had "no set limit" for a payout.
Maximum entry age
The maximum age you can be to apply for life insurance. Common age caps are 64 or 65, but some providers go up to 70+.
Some insurers will require you to have a physical examination before you're approved, while others will just need you to answer questions about your medical history on your application form.
Monthly benefit
A regular monthly payment if you're unable to work due to illness or injury. It's designed to replace a portion of your regular income. Monthly benefits are a common feature of income protection policies.
Mortgage protection insurance
Insurance that can cover your mortgage repayments if you have a serious illness or die. Mortgage protection will only cover your mortgage repayments, not all the other bills you'd need to pay if you lost your ability to earn an income.
Personal accident insurance
Insurance to replace your income if you are temporarily unable to work after an accident. This cover can be bought as a standalone policy. Keep in mind it won't cover you if you get sick and can no longer work.
Personal insurance
An umbrella term for the following 4 core types of life cover: Life insurance, total and permanent disability (TPD) insurance, trauma insurance and income protection cover.
A condition you have, or have had, prior to taking out life insurance.
You may be able to get life insurance that includes cover for a defined medical condition. It's likely to cost you more. However, if an insurer thinks your condition is too high risk or isn't under control, it'll exclude it from your policy.
Premiums
The amount you pay an insurer for your cover. Premiums can be paid weekly, fortnightly, monthly or annually.
A policy option that lets you stop paying premiums entirely. You will typically lose all your cover while your policy is suspended.
Not all life insurance policies include a suspension of cover benefit. Check with an insurer directly.
Premium freeze
A premium freeze lets you stop your premiums from increasing as you age.
It's only available with stepped premium policies because the cost rises with age. By activating a premium freeze, your level of cover will drop over time.
Retail life insurance
Buying life insurance through a broker, who will give you tailored advice on securing cover.
Buying a retail policy is 1 of 3 ways to get life insurance in Australia. The others are directly with an insurer or through your superannuation.
Salary continuance
You can receive up to 75% of your regular earnings each month to cover general living expenses if you can't work due to an accident, illness or injury.
Salary continuance insurance is held within a super fund, and you'll pay your insurance premiums from your super balance rather than directly from your bank account.
Typically, to be classed as a "non-smoker" you'll need to be free of any smoking products for 12 months, but this can vary between insurers.
Stepped premiums
How much you pay for your policy increases each year by a certain percentage. Most policies in Australia have stepped premiums. Yearly increases can range from 2% to 7%.
Term cover
A type of life insurance that provides a set amount of cover for a set amount of time (or "term"). The maximum cover offered by term policies can range from $100,000 to $1 million.
Terminal illness benefit
An insurance which pays out a lump sum if you're diagnosed with an illness which cannot be cured, such as advanced cancer. Benefits can range from around $1 million to as much as $25 million in Australia. It's usually included with a life cover policy.
Total and permanent disability (TPD)
An insurance that pays a lump sum (as high as $5 million) if you get sick or injured and become permanently disabled. In most cases, TPD cover is available as an add-on when you take out life insurance.
Trauma insurance
A type of insurance that pays out if you are diagnosed with a critical illness or suffer a life-changing injury that's listed in your policy. Examples can include cancer, heart attack and stroke. Trauma insurance pays up to $2 million as a lump sum.
Underwriter
When you apply for cover, the insurance underwriter assesses your level of risk and determines whether the insurer should offer you cover, as well as under what conditions that cover should be offered.
You could check to see if a policy has been underwritten by a major insurer, backed by many years of experience.
Why you can trust Finder's life insurance experts
We're free
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
Choosing the best life insurance policy for you will depend on your individual needs and circumstances. Some factors to consider when selecting a policy include:
Coverage amount: Ensure that the policy provides enough coverage to meet your needs.
Premiums: Consider the cost of the premiums and whether they fit within your budget.
Policy features: Look for policies that offer additional features, such as a premium freeze or the ability to add riders for additional coverage.
Insurer reputation: Research the insurer's reputation and financial stability to ensure that it will be able to pay out claims when needed.
According to the latest Australian Prudential Regulation Authority (APRA) data, Zurich (98%), ClearView (97.2%) and NobleOak (96.9%) have the highest claims acceptance rate. The industry average is 92.4%. However, if you're interested in maximum payout limits, look at TAL. It has no maximum benefit cap.
Life insurance is a contract between an individual and an insurance company, where the individual pays a premium in exchange for a lump sum payment to their beneficiaries upon their death. This payment can be used to cover expenses such as funeral costs, outstanding debts and ongoing living expenses for dependants.
There are several types of life insurance available in Australia, including:
Term life insurance: Provides coverage for a set period of time, usually 10–30 years.
Trauma insurance: Provides a lump sum payment if the insured is diagnosed with a specific medical condition, such as cancer or a heart attack.
Note that whole life insurance, which provides coverage for the entire life of the insured plus an investment component, is no longer offered in Australia. It's still popular in overseas markets, but Australia phased it out.
The amount of life insurance coverage you need will depend on your individual circumstances, such as your age, income, debts and dependants. A general rule of thumb is to have coverage equal to 10–12 times your annual income. However, it's important to speak with a financial adviser or insurance professional to determine the appropriate amount of coverage for your specific needs.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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