Best life insurance in Australia

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 quick overview, we've done the hard yards. We examined and scored 11 providers and 22 policies, 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

The best life insurance of 2018

Brand Category Details Apply
NobleOak Life Insurance
  • Best life insurance policy
  • Finder score: 4.63/5
  • Up to $15,000,000 in cover
  • Tailored cover to avoid surprises at claims time
Get quotes
AIA Life Insurance
  • Best life insurance provider (claims outcomes)
  • Lowest chance of a claim dispute: 1.3%
  • No benefit limit (subject to approval)
  • Flexible premium options
Get quotes

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.

How did we find the best life insurers?

22 policies

Scored on their features

11 providers

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

Richard Laycock

Insurance Editor

5+ years insurance writing experience

Maurice Thach

Maurice Thach

Life Insurance Publisher

Tier 1 Life Insurance General Advice Certification from ASIC

Zahra Campbell-Avenell

Insurance Publisher

All around insurance guru

Choosing the best policy

In December 2018, 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.


The 3 best life insurers (as chosen by finder in 2018)

Here's who we rated as the best life insurers in 2018.

Best for

Strong features and high sum insured

strength

NobleOak Life Insurance


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Up to $15 million in life cover and fully underwritten medically.

Pros
  • Flexibility to increase cover, without another medical assessment
  • Full underwritten cover so there's no surprises at claims time
  • Counselling benefit
Cons
  • No level premiums offered so your premium will go up as you get older

OnePath logo

Best for

All around comprehensive cover

strength

OnePath OneCare Life Cover


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No cover limit (subject to approval) and flexible premium options.

Pros
  • Flexibility to increase cover for a large range of circumstances, without another medical assessment
  • Terminal illness accomodation benefit offered
  • Option to waive your premiums if you become disabled
Cons
  • Minimum sum insured for death and TPD cover is $50,000 (some brands are more flexible e.g. have no minimum)

Best for

Confidence during claim time

strength

AIA Life Insurance


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Lowest percentage of claim disputes in 2017

Pros
  • Level premium options offered
  • Complimentary child insurance
  • AIA Vitality health program available to reduce premiums and get gym discounts
Cons
  • 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.

Honourable mentions
  • 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.

Score and rating details

Life insurance guides for specific circumstances

What's next?

Compare policies & get quotes Tips to finding the best cover

Receive a quote from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,500,000
65
$3,000
No
80
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.

$1,500,000
65
$100,000
Yes
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Ends 31 March 2019.
$1,000,000
65
$100,000
No
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, Medibank health insurance members can save 10% off premiums.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$1,500,000
69
$50,000
Yes
99
Get your first month free when you buy HBF Ezicover Life Insurance.
$15,000,000
69
$0
Yes
99
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs.
$2,000,000
74
$100,000
Yes
99
Join Qantas Life Insurance and earn up to 100,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.

Compare up to 4 providers

Get the right cover with a qualified consultant

Sex
Do you smoke?

An adviser can help you find cover from trusted life insurance brands.

  • Get competitive quotes from up to 10 policies
  • Lower rate of declined claims (according to ASIC)
  • Save time and effort

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What other factors can you look at to find the best life insurer?

If you want more information before making your decision, you can also look at things like:

  • Market share
  • Customer satisfaction
  • Financial rating

Top 10 life insurers in Australia for 2018 (by market share)

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.

What's the best life insurance brand in terms of customer satisfaction?

Roy Morgan analysed 13 of the largest insurers in Australia and found the highest levels of customer satisfaction in Insuranceline, Allianz and AIA Australia.

Who has the strongest financial rating?

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.

What features do the best life insurance policies have?

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.

"There may be some limitations like the not being to make a claim in the first year of increasing your sum insured as well as an age where you can no longer use the benefit".

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".

Types of life insurance to choose from

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.

What type of life insurance is best for me?

Consider your life stage

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.

Life stages
Calculate your life insurance needs

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
  • Retirement
  • 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.

* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms "Best" and "Top" are not product ratings and are subject to our disclaimer. You should consider seeking financial advice and consider your personal financial circumstances when comparing products.

Icons made by Vectors Market, Freepik from www.flaticon.com is licensed by CC 3.0 BY

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4 Responses

  1. Default Gravatar
    LawandaOctober 25, 2017

    Is there life insurance coverage available for someone who has Sickle Cell Disease, which is a genetic, inherited disease from birth and not something that you contract?

    • finder Customer Care
      JoanneOctober 26, 2017Staff

      Hi Lawanda,

      Thanks for reaching out.

      There are life insurances available to cover pre existing medical conditions. However, it is very important that you disclose any relevant medical history during the application process.

      Moreover, in applying for a life insurance, it is a standard practice that a client will be asked to fill out a questionnaire which would ask you some pertinent questions. The questions might ask you to disclose details about any health issues. On this page you can make an enquiry with an adviser to get possible quotes. And by entering your phone number you will get an accurate, personalized no obligation quote from an experienced life insurance adviser.

      If you can find an insurer who specialises in your particular condition, they will be able to assess your risk factors in a detailed way and give you the best value life insurance coverage.

      Cheers,
      Joanne

  2. Default Gravatar
    JenniferDecember 4, 2016

    Is there a life insurance policy for a minimum of $50,000 payout?

    • finder Customer Care
      RichardDecember 5, 2016Staff

      Hi Jennifer,

      Thanks for getting in touch. Several life insurance brands offer cover starting from $50,000 including ANZ, Noble Oak and Zurich.

      I hope this was helpful,
      Richard

      All the best,
      Richard

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