Best life insurance in Australia

Life insurance is tailored to your unique circumstances, so no policy is perfect for everyone. However, there are ways to find the best life insurance policies for your situation - and we're here to help.

To give you a starting point, we reviewed and scored over 20 Direct Australian life insurance policies.

Finder Award Winner 2019: Best Direct Life Insurance Policy

Winner: NobleOak Life Insurance

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NobleOak takes home the Finder Award for the Best Life Insurance in Australia because of its combination of competitive price and strong features.

• High scoring on both features and price

  NobleOak came out on top for its NobleOak Premium Life Direct offering with, on average, the lowest price in the direct market. At the same time, NobleOak's policy has a wide range of features like the option to cover total permanent disability (TPD) and trauma.

• High benefit limits and extra features

  What really separates NobleOak Premium Life Direct from the rest of the pack is the maximum sum, as you're able to apply for a death benefit of up to $15,000,000. This is over seven times more than the maximum coverage offered by its closest competitor.
  NobleOak has one of the higher maximum entry ages, as you're able to take out a new policy up to 69 years of age. It's also one of the few direct policies that come with a counselling benefit.

• Fully underwritten

  NobleOak is also the only direct policy that's "fully underwritten" over the phone. This means you'll need to answer a full health questionnaire up-front when you apply. Although it sounds like extra work, this requirement will ensure there are no surprises come claim time (versus a policy that just accepts you automatically).

• Methodology

  Our 2019 Finder Awards for Best Life Insurance Insurance looked at 26 brands across 12 different personas for both male and female aged between 30 and 50.

  Multiple quotes were obtained from each provider. The following product features ("metrics") were scored and weighted as follows:

  • Fully underwritten: 7%
  • Max sum insured: 10.5%
  • Guaranteed renewability: 7%
  • Expiry age: 10.5%
  • Counselling benefit: 3.5%
  • Premium cover suspension: 3.5%
  • Interim accident cover: 7%
  • Options: 7%
  • Funeral advancement benefit: 3.5%
  • Max entry age: 10.5%
  • Cost for a nonsmoker: 20%
  • Cost for a smoker: 10%

  You can read in full here

Best life insurance for claims outcomes

There are three ways you can purchase life insurance in Australia:

• Direct (bought from an insurance brand)
• Retail (bought with an adviser)
• Super (cover that's included with your superannuation)

Here are the top life insurers in regards to claims outcomes for each category.

• Methodology

  We looked at claims data from the Australian Prudential Regulation Authority (APRA) from January 2018 to December 2018 (this is the most recent data available). The tables below focus on "death cover" claims across each purchase channel: retail (adviser), direct purchase with an insurer and purchase through super.

  To get the score, we then weighted the following aspects of the claim data:

  • How often a claim is accepted
  • The time it takes to accept or deny a claim
  • The rate of disputes

Best direct life insurer for claims outcomes: ClearView

Overall claims score: A

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Direct life insurance is when you purchase directly from an insurer, rather than through an adviser or broker. You can do this online or over the phone.
Here's why ClearView Life Insurance bought directly has an excellent claims score.

• Claims accepted rate

  When it comes to hassle-free and easy claiming, ClearView was at the top of the pack. It accepted 97.7% of claims compared to the industry average of 88%.

• Average claims dispute resolution time

  The average claims dispute resolution time for ClearView customers is 2.4 months. The industry average is almost an entire month longer at 3.3 months

• Disputes per 100 lives insured

  ClearView also had lower claims disputes than any other direct insurer. For every 100 lives insured, it had an average of 3.8 disputes. The industry average is 15.6 – significantly more than ClearView.

Best retail life insurer for claims outcomes: TAL

Overall claims score: B

More info

Life insurance bought retail is usually recommended through an adviser. The broker assesses your current financial situation and medical history to determine the level of cover you need.
Here's why TAL Life Insurance bought with an adviser has a high claims score.

• Claims accepted rate

  TAL accepted 98.4% of claims when it came to retail life insurance policies. This is higher than the industry average of 96.3%, making TAL a good choice for those who want less surprises come claim time.

• Average claims dispute resolution time

  If there is a dispute, TAL is swift to come to a resolution. TAL's average claim dispute resolution time is less than a month. At 0.9 months to be more exact, TAL's resolution time is much shorter than the industry average of 3.1 months.

• Disputes per 100 lives insured

  The industry average for disputes per 100 lives is 7 while TAL came out slightly higher, with a score of 9.2.

Best super life insurer for claims outcomes: MetLife

Overall claims score: B

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In Australia, it's often the case that you can buy insurance through your super. Your life insurance through super usually comes as a group policy, which allows you to pay a premium that's standard for all members.
Here's why MetLife Life Insurance bought through super has a high claims score.

• Claims accepted rate

  MetLife accepted nearly all life insurance claims made. With 99.6% of claims accepted, it scored higher than the industry average of 98.2% – one of the main reasons it came out on top for life insurance through super.

• Average claims dispute resolution time

  When it came to claims dispute resolution time, MetLife performed above the industry average of 1.3 months. Its 0.8 months' claims resolution time is another reason that it was the overall best life insurer for claims outcomes.

• Disputes per 100 lives insured

  MetLife had half the amount of disputes when compared to the industry average. It had 0.4 disputes per 100 lives when compared to the average of 0.8.

• Best life insurer for claims outcomes (full tables):

  • Direct
  • Retail
  • Super policies

  Insurer	Claims accepted rate	Average claim time (months)	Disputes per 100 lives insured	Overall claims performance score
  Industry average	88.00%	3.3	15.7	C+
  ClearView	97.70%	2.4	3.8	A-
  Westpac	94.60%	3.1	8.3	B+
  Zurich	94.30%	2.4	14.1	B
  TAL	72.80%	3.1	18.9	C+
  CommInsure	93.30%	4.1	22.2	C-
  Suncorp/Asteron	88.00%	3.6	29.4	C-
  OnePath	94.50%	5.4	66.6	C-
  Hallmark	N/A	N/A	N/A	N/A
  MetLife	N/A	N/A	N/A	N/A
  NobleOak	N/A	N/A	N/A	N/A
  AIA	N/A	N/A	N/A	N/A
  MLC	N/A	N/A	N/A	N/A
  AMP	N/A	N/A	N/A	N/A

  Insurer	Claims accepted rate	Average claim time (months)	Disputes per 100 lives insured	Overall claims performance score
  Industry average	96.30%	3.1	7	B-
  TAL	98.40%	0.9	9.2	B+
  Zurich	96.30%	1.4	3.4	B
  MLC	97.90%	2.4	6	B-
  Suncorp/Asteron	97.20%	1.9	8.8	B-
  Westpac	95.00%	2.2	2.6	B-
  OnePath	96.50%	4.3	5.6	C+
  AMP	97.50%	5.4	7	C+
  AIA	97.40%	2.3	9.4	C+
  CommInsure	88.50%	2.1	11.5	C-
  ClearView	N/A	N/A	N/A	N/A
  Hallmark	N/A	N/A	N/A	N/A
  MetLife	N/A	N/A	N/A	N/A
  NobleOak	N/A	N/A	N/A	N/A

  Insurer	Claims accepted rate	Average claim time (months)	Disputes per 100 lives insured	Overall claims performance score
  Industry average	98.20%	1.3	0.8	C
  MetLife	99.60%	0.8	0.4	A
  MLC	99.10%	0.7	0.4	A
  AMP	99.90%	8.4	0.4	B
  TAL	98.50%	0.8	0.7	B-
  Suncorp/Asteron	94.00%	1	0	B-
  AIA	98.50%	0.8	1	B-
  Westpac	98.40%	1.6	0.5	C
  CommInsure	96.50%	1.3	0.8	C-
  OnePath	97.10%	1.2	1.6	C-
  ClearView	N/A	N/A	N/A	N/A
  Hallmark	N/A	N/A	N/A	N/A
  NobleOak	N/A	N/A	N/A	N/A
  Zurich	N/A	N/A	N/A	N/A

Best life insurance for various categories

Best cover that is fully underwritten: NobleOak

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One of the big reasons NobleOak took out the Finder Award for Best Life Insurance was because it is fully underwritten.

• Why is a fully underwritten policy a good thing?

  Having a fully underwritten policy means that the insurer is getting a good look at your health and calculating your premiums accordingly. It also means that there shouldn't be any issues come claim time.

• Highest benefit amount

  When looking at which policy was the best fully underwritten life insurance policy, we also factored in the maximum sum insured. NobleOak provided the highest maximum sum insured policy by a wide margin.

• Runners-up

  NobleOak is the only direct life insurance provider that states explicitly on its website that it is fully underwritten.

Best cover for older Australians: TAL Lifetime Protection and Qantas Life Insurance

Getting the best cover as you get older is not so much about the ability to get the most cover dollarwise, but the right amount of cover to suit your changing needs.
When looking at which insurer offered the best choices for older Aussies, we looked at three key areas: minimum sum insured, the maximum entry age and the policy expiry age. It turns out that both TAL and Qantas scored well according to our algorithm.

• The minimum sum insured

  It may sound counterintuitive but as you get older, the amount of cover you actually need gets less and less. Your kids have flown the nest (hopefully) and you no longer have to worry about looking after their day-to-day expenses. However, you might have a little way to go on your mortgage and want to make sure you've got enough to cover it should the worst happen. So, having the ability to take out cover for a low amount can come in handy. Both TAL and Qantas allow you to take out cover starting from as little as $50,000.

• Maximum entry age

  Obviously, having the ability to take out the cover in the first place is important, which is why we factored in maximum entry age. Both Qantas and TAL life insurance policies allow customers to take out cover until the age of 74.

• Policy expiry age

  Not only is being able to take out cover later in life important but so is how long that cover remains in place. TAL and Qanats allow their customers to hold their life cover until the ages of 100 and 99 respectively.

Best additional coverage: Guardian

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Life insurance is a very broad term and can offer additional coverage such as total and permanent disability (TPD) insurance and trauma cover. Others provide cover such as counselling benefits and guaranteed renewability. We looked at how well insurers covered these areas and more and found that Guardian Insurance offered the best additional coverage.

• Offers both trauma and TPD

  When taking out cover with Guardian you have the option to add both trauma and TPD insurance. Guardian even offers a child benefit option.

• Premium suspension option

  One of the nice-to-have features of this policy is the ability to suspend premium payments during financial hardship.

• Runners-up

  While Guardian took out the number one spot, both Real and TAL Life Insurance tied in a close second.

Best income protection insurance policy

Winner: Virgin Income Protection Insurance

More info

Standout feature: Up to $10,000 of income is covered (to a maximum of 85%)

• Scored high on features and price

  Virgin scored top marks for its Virgin Income Protection Tailored policy with high benefit and waiting period options. Better still, up to 85% of your income is covered. Despite all these features, Virgin's income protection policy is competitively priced when compared to the rest of the market.

• Wide range of benefit periods

  With Virgin Income Protection Tailored, you can choose a benefit period ranging from six months to five years, allowing you to pick the coverage length that suits your needs.

• While we thought Virgin Money's Income Protection policy was the standout, there were five runners-up:

  Finder rank	Policy	Maximum monthly benefit	Waiting/benefit period options	Additional features
  1	Virgin Tailored Income Protection	85% of monthly income to a maximum of $10,000	Choice of 4 benefit periods Choice of 4 waiting periods
  2	NobleOak Income Protection Insurance	75% of monthly income to a maximum of $25,000	Choice of 2 benefit periods Choice of 2 waiting periods	Death and TPD benefit
  3	ANZ Income Protection	85% of monthly income to a maximum of $10,000	Choice of 3 benefit periods Choice of 2 waiting periods	Redundancy cover option
  4	NRMA Income Protection	85% of monthly income to a maximum of $10,000	Choice of 4 benefit periods Choice of 4 waiting periods	Permanent Disability Cover.
  5	Insuranceline Rate Saver Income Protection	85% of monthly income to a maximum of $10,000	Choice of 4 benefit periods Choice of 4 waiting periods

Continue your search for the best life insurance...

While we don't compare all brands, the table below shows policies from Finder partners who offer direct life insurance.

Sort by:

Name	Product	Maximum Cover	Maximum Entry Age	Minimum Sum Insured	Expiry Age
NobleOak Life Insurance 2019 Winner		$15,000,000	69	$50,000	99	Get 2 months free when joining combined cover. Offer ends in April 30, 2020. T&Cs apply.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover		$1,000,000	64	$100,000	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™ .	Get Quote View details	Compare	loading Fetching your data...
Zurich Ezicover Life Insurance		$1,500,000	69	$50,000	99	Get your first month free. T&Cs apply.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance		$1,500,000	65	$100,000	No expiry age as long as premiums are paid	10% discount for Medibank health members & go into the draw for $1,000 Gift Card when you get a life insurance quote.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance		$1,500,000	65	$100,000	No expiry age as long as premiums are paid	ahm Health members can save 10% off premiums.	Get Quote View details	Compare	loading Fetching your data...
Guardian Life Insurance		$1,500,000	64	$100,000	No expiry age as long as premiums are paid	Get Quote View details	Compare	loading Fetching your data...
ANZ Life Insurance		$2,000,000	59	$50,000	99	Get Quote View details	Compare	loading Fetching your data...

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How to find the best life insurance policy

Step 1: Choose the type of life insurance policy you want

There are three ways to buy life insurance - retail, direct, or through your super. They all have their pros and cons, so it's important to know which one is right for you, before you make your decision.

• Retail: Buy from a broker. Tailored to your needs. Medical underwriting.
• Direct: Buy online or over the phone. Little or no medical underwriting.
• Super: Acces via your super. Typically automatic acceptance. No upfront costs, but withdraws from your retirement funds.

Step 2: Compare policies

Use Finder's online tool to compare the benefits of life insurers. Our table shows your key features at a glance but remember, if you click 'view details' below the quote button, you'll be able to see a more in-depth breakdown of each policy.

Step 3: Be honest about your situation

However you choose to buy insurance, always be honest about your personal information. Don't be tempted to lie if you have a smoking habit, and if you're asked to disclose any pre-existing medical conditions - don't hold back.

Step 4: Understand how much cover you need

Getting the benefit right is important. Accept that you might have to stomach a slightly larger premium if you want a bigger payout. Remember, Australians are chronically underinsured.

Step 5: Read your PDS

Before buying an insurance policy, always read the product disclosure statement (PDS) carefully. It contains everything you need to know about your life insurance.

Things you should compare when finding your best option

At first glance all life insurance policies might look the same - but there are a few key features to keep an eye on, so you can see if you're getting the best option for you.

• Maximum cover - Some life insurance policies will cap benefits at $1 million, but if you're looking for a higher pay out there are still options out there. For example, Noble Oak offers benefits of up to $15 million.
• Minimum sum insured - On the flipside, if you're only looking for a modest pay-out, it's important to consider the minimum sum insured. Some insurers won't offer benefits for less than $100,000 but both Noble Oak and Zurich will provide policies with a $50,000 benefit.
• Maximum entry age - Finding life insurance gets a little trickier once you get into your 60s, with some insurers only accepting new customers under the age of 65. However, both Noble Oak and Zurich have a maximum entry age of 69.
• Optional extras - If you want to bundle your life insurance with other policies - such as TPD or trauma, it may be worth looking for companies that offer optional add-ons.

What is the best life insurance for seniors?

No policy is perfect for everyone - but there are some important features to look out for, if you're a senior on the hunt for the best life insurance.

Pre-existing medical conditions

If you have a pre-existing medical condition, and you want your life insurance to cover it, it's worth considering a policy which includes medical underwriting. You might pay more for your policy, but you'll have peace of mind that it'll pay out when it matters.

Maximum entry age

Some insurance policies have a maximum entry age of 60 - but Noble Oak and Zurich have a maximum entry age of 69.

_{* 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.}

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