Which life insurance is the cheapest?

Based on our analysis of 170 quotes, TAL offered the cheapest life insurance on average. However, the cheapest provider for you will depend on your own age, health and the amount of cover you need. The only way to know for sure is to get quotes from several different insurers.

Is it worth getting life insurance in Australia?

Life insurance is worth considering if you have a partner, children or other relatives who depend on your income. It provides a financial safety net that can help your loved ones pay for mortgage, bills and other living costs if you were to pass away unexpectedly.

Is the cheapest life insurance policy always the best option?

Not always. The cheapest policy might have a lower benefit amount, more exclusions or a lower claims-paid rate than a slightly more expensive one. It's important to balance cost with features to make sure the policy provides adequate protection for your family.

What's the difference between stepped and level premiums?

Stepped premiums are recalculated each year based on your age, so they start cheap but become more expensive over time. Level premiums are averaged out over the life of the policy, so they cost more initially but don't increase as dramatically as you get older. A policy with stepped premiums is often cheaper in the short term.

Can I get life insurance without a medical exam?

Yes, many direct life insurance policies can be taken out online or over the phone without a full medical exam. You will still need to answer a series of questions about your health and lifestyle. Insurers may request more information or a check-up if you disclose a pre-existing medical condition.

What is the cheapest type of life insurance?

Term life insurance, which providers cover for a set period, is generally cheaper than whole-of-life cover. Buying directly or through your super fund can also be cheaper than retail policies bought through an adviser, though the cover may be more basic.

Is cheap life insurance any good?

It can be, as long as it still covers what matters to you. A low premium often means a lower benefit amount, a higher chance of exclusions or a weaker claims record, so it's worth checking the claims acceptance rate and the fine print, not just the price. The goal is the cheapest policy that still gives your family enough protection.

Does cheaper life insurance mean worse cover?

Not necessarily. Two policies at very different prices can offer similar core cover, which is exactly why comparing pays off. Where cheap policies tend to cut back is on optional extras, higher benefit limits or added features, so check you're not giving up something you actually need to save a few dollars.

How can I lower my life insurance premium without losing cover?

Switching to level premiums, paying annually and comparing insurers can all reduce your premium without reducing your cover. Improving your health, particularly quitting smoking, can also lower it at your next premium review. Reducing your cover amount can lower premiums too, but only do that if your family's needs have genuinely changed.

Cheap Life Insurance 2026: Compare & Save

Finder Award

TAL Accelerated Protection Life Insurance

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No death benefit limit

Budget Direct Life Insurance

High death benefit limit of $25 million

NobleOak Life Insurance

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High death benefit limit of $25 million

Comparing insurers is the single most effective way to find an affordable policy that still protects your family.
Your premium depends on your age, health, lifestyle and how much cover you choose, so the "cheapest" option looks different for everyone.
Small changes can lower your premium, from adjusting your cover amount to choosing level premiums or quitting smoking.

Top 3 cheapest life insurance policies

Cheap life insurance doesn't have to mean low quality. We compared 11 brands and found the three providers that consistently offered the most competitive prices alongside strong policy features.

Cheap life insurance - 1st place

TAL Accelerated Protection Life Insurance

Our verdict

TAL is definitely worth looking into. It's affordable, with industry-leading benefits and most claims are settled very quickly.

Pros

TAL was the only brand we compared that doesn't limit your death benefit amount, as long as it's "financially justifiable".
Of the 11 brands we compared, TAL was the cheapest on average, according to Finder research.
More than 60% of TAL claims were paid out within 2 weeks - the most of any brand.

Cons

TAL's maximum entry age is 74. This is higher than average, but some brands allow entry up to 79.
There's no discounts for buying online or holding multiple TAL policies.

Provider	Average cost	Finder score	Max cover	Funeral benefit	Claims acceptance rate*	Customer satisfaction rating
TAL	$70.63	9.9 / 10		$25,000	87.6%	N/A
NobleOak	$75.03	9.5 / 10	$25,000,000	$25,000	98.8%	N/A
Budget Direct	$74.90	9.5 / 10	$25,000,000	$25,000	98.8%	4.01 / 5

*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.

Claims acceptance rate. TAL's claim acceptance rate of 87.6% is lower than the industry average of 91%.
Claims processing time. The average time for a claim to be processed is 2.7 weeks - exactly the same as industry average.
How to make a claim. If you need to make a claim with TAL, you should call 1800 100 016. The line is open Monday to Friday, 8.30am to 5.30pm (AEST). Alternatively, you can email claims@tal.com.au.

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Cheap life insurance - 2nd place

Budget Direct Life Insurance

Our verdict

Budget Direct is underwritten by NobleOak so a lot of the same benefits apply in terms of pricing, claims acceptance and processing time. It's another great option for those who want a cheaper option that still offers comparatively strong cover.

Pros

Of the 11 brands we compared, Budget Direct came in second for affordability.
Budget Direct has a maximum death benefit limit of $25 million - more than the majority of other brands we compared.
Budget Direct's average claim time of 1.9 months is faster than the 2.7 industry average.

Cons

The maximum entry age for Budget Direct policy is 69 - but some brands allow entry up to 79.
Budget Direct doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
Funeral advancement is only $25,000. It should be enough for most but TAL and Australian Seniors both have higher benefits.

Provider	Average cost	Finder score	Max cover	Funeral benefit	Claims acceptance rate*	Customer satisfaction rating
Budget Direct	$74.90	9.5 / 10	$25,000,000	$25,000	98.8%	4.01 / 5
NobleOak	$75.03	9.5 / 10	$25,000,000	$25,000	98.8%	N/A
TAL	$70.63	9.9 / 10		$25,000	87.6%	N/A

*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.

Claims acceptance rate. Budget Direct has an excellent claims acceptance rate of 98.8% - higher than the industry average of 91.1%.
Claims processing time. The average claim processing time is 1.9 months - faster than the 2.7 industry average.
How to make a claim. If you need to make a claim with Budget Direct, you can call 1300 220 627. Budget Direct's life insurance is provided by NobleOak, so the claims process will likely be managed primarily with them.

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Cheap life insurance - 3rd place

NobleOak Life Insurance

Our verdict

NobleOak is great for those who are looking for a great value life insurance policy. It offers a higher maximum cover limit than some other providers, has a brilliant claims acceptance rate as well as a faster claim payout time, yet it remains one of the cheaper brands on the market.

Pros

NobleOak has a high maximum death benefit limit of $25 million - most brands cap payouts at between $1m and $2.5 million.
Of the 11 brands we compared, NobleOak came in third for affordability.
On average, Noble Oak's claim times were 1.9 months - faster than the 2.7 average.

Cons

NobleOak doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
It only offers stepped premiums, which increase in price as you age.
The funeral benefit is a generous $15,000, but some brands offer up to $25,000.

Provider	Average cost	Finder score	Max cover	Funeral benefit	Claims acceptance rate*	Customer satisfaction rating
NobleOak	$75.03	9.5 / 10	$25,000,000	$25,000	98.8%	N/A
TAL	$70.63	9.9 / 10		$25,000	87.6%	N/A
Budget Direct	$74.90	9.5 / 10	$25,000,000	$25,000	98.8%	4.01 / 5

*Claims acceptance rate reflects the rate for those who bought policies directly through the insurance provider. It will be different for policies bought via super or via a broker.

Claims acceptance rate. NobleOak has an excellent claims acceptance rate of 98.8% - higher than the industry average of 91.1%.
Claims processing time. The average claim processing time is 1.9 months - faster than the 2.7 industry average.
How to make a claim. If you need to make a claim with NobleOak, you can call 1300 551 044. Alternatively, you can contact the Claims Team via an online form on NobleOak's website.

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How much does cheap life insurance cost?

The cost of life insurance depends entirely on your personal circumstances and the level of cover you choose. For a basic policy with $500,000 of cover, a younger, healthy person might pay as little as $30 a month. For an older person or a smoker, that same policy could cost over $150 a month.

In our most recent survey, Australians reported paying an average of $154 per month for their life insurance. However, by comparing policies, you may be able to find cover for much less.

What can life insurance cover?

Life insurance pays a lump sum benefit to your family when you die. Most policies also include a few key benefits at no extra cost.

Terminal illness benefit. Allows you to receive your benefit as an advance payment if you are diagnosed with a terminal illness and are expected to pass away within a set timeframe, usually 12 or 24 months.
Funeral advance benefit. Your family can receive a portion of the benefit amount immediately after you die to help cover funeral expenses without having to wait for the full claim to be processed.
Counselling benefit. Some policies include a benefit to help your family pay for grief counselling services.
Optional cover. You can also choose to add other types of insurance to your life policy, such as Total and Permanent Disability (TPD), Trauma Insurance or Income Protection, for an additional cost.

How much are Australians spending on life insurance?

Every month, we ask a bunch of Aussies what they're paying for their life insurance. Here's what their bill looked like in March 2026.

$154

Price based on 160 responses about their monthly premium in March 2026.

What affects the cost of your life insurance?

Insurers look at a range of factors to calculate your risk and determine your premium.

Your age and gender. Premiums are lower when you're younger and generally cost less for women.
Your health and lifestyle. Insurers will ask about your medical history. Smokers can expect to pay at least double what a non-smoker pays.
Your job. If you work in a high-risk occupation, such as a trade, your premiums will be higher.
The cover amount. This is the biggest factor. A $1 million policy will cost more than a $250,000 policy.
The type of premium. Stepped premiums start cheaper but increase each year, while level premiums start higher but remain more stable over time.

How to save on your life insurance premium

Compare several insurers. Our research found some brands cost more than twice as much as others for similar cover, so shopping around is the biggest single saving.
Choose the right cover amount. Lowering your benefit to what your family would actually need is the fastest way to cut the premium.
Consider level premiums. They cost more upfront but don't rise as steeply with age, which can be cheaper over the long run.
Quit smoking. Smokers typically pay at least double, so this is the biggest lifestyle lever.
Pay annually. Many insurers offer a small discount for paying yearly instead of monthly.
Check cover through super. It can be cheaper as funds buy in bulk, though the cover is often more basic.

Cheap joint and couples life insurance

If you're insuring alongside a partner, a joint life insurance policy can sometimes work out cheaper than two separate policies, since you're covered under one plan with one set of fees. The trade-off is less flexibility: a joint policy usually pays out once, on the first claim, and then ends, whereas two single policies each pay out separately. Which is cheaper and better value for you and your partner depends on your circumstances.

"I cancelled the life insurance inside my super because it eating into my retirement savings, it would have expired when I turned 65 and the premiums were going up every year. I found it was much better value to get a standalone life insurance policy by choosing level premiums and the payout amount myself."

Gary Ross Hunter

Journalist

FAQs

It can be, as long as it still covers what matters to you. A low premium often means a lower benefit amount, a higher chance of exclusions or a weaker claims record, so it's worth checking the claims acceptance rate and the fine print, not just the price. The goal is the cheapest policy that still gives your family enough protection.
Switching to level premiums, paying annually and comparing insurers can all reduce your premium without reducing your cover. Improving your health, particularly quitting smoking, can also lower it at your next premium review. Reducing your cover amount can lower premiums too, but only do that if your family's needs have genuinely changed.

Sources

Written by

Ceyda Erem

Senior writer

Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

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Ceyda has written 199 Finder guides across topics including:

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Cheapest life insurance in Australia 2026

Cheap life insurance doesn't have to mean cheap cover. Here's how to find an affordable policy that still protects your family.