We put every effort into ensuring information on Finder is accurate. This article was reviewed by Karen Eley from our Editorial Review Board as part of our fact checking process.
Finding the cheapest life insurance
Our insurance team have gathered 170+ quotes from 15 of Australia's most popular providers. We've selected the cheapest policies based on 2024 Finder Awards research. All the policies in this guide can pay your loved ones a lump sum if you die. Keep in mind, prices will differ depending on your age, health, occupation and smoking status.
Cheap life insurance: TAL Accelerated Protection Life Insurance
Our verdict
On average, TAL was the cheapest life insurance policy according to our 2024 Finder Awards. In some cases, for a 35-year old non-smoker, prices were as cheap as $6.75 a week. We researched 15 different life insurers in total.
Pros
TAL doesn't have a cap on payouts. All other insurers have a limit of around $1.5 million.
The application process is very straightforward. You can get a quote with TAL in less than five minutes.
It was the cheapest in our research; keep in mind , prices may differ for you.
Claims acceptance rate of 86.4% is lower than the average – 90.7%.
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: 74
We picked TAL because it was the cheapest policy. To determine the winners, we got 170+ quotes across 15 popular life insurance providers. These were:
AAMI
ahm
Allianz
Australian Seniors
Budget Direct
Guardian
HCF
Insuranceline
Kogan
Medibank
NobleOak
RAC
Real
Suncorp
TAL
Keep in mind that your prices will differ depending on your age, health, occupation and smoking status.
Best value life insurance: NobleOak life insurance
Our verdict
On average, NobleOak was in the top 3 cheapest life insurance policies, according to our 2024 Finder Awards. It's well priced and includes a decent level of coverage.
Pros
It's cheap - NobleOak was in the top 3 cheapest life insurance providers we researched for our 2024 Finder Awards.
It has a comparatively low claims processing time of 0.9 months. The industry average is 2.5 months.
Offers up to $25 million in cover - most offer up to just $1.5 million.
Cons
Only offers stepped premiums (they increase as you age)
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 picked NobleOak because it was in the top 3 cheapest policies we researched. We got 170+ quotes from 15 different insurers, using 16 different customer profiles. NobleOak was the second cheapest provider with an average annual cost of $845.
Keep in mind, prices will differ depending on your age, health, occupation and smoking status.
Level of cover. The higher the benefit payout, the higher the premium tends to be.
Added cover. Premiums go up if you add trauma, income protection and total permanent disability cover to your standard life insurance policy.
Payment type. You can generally choose to pay your premiums in 1 of 2 ways: - Stepped. Your premiums start out lower but increase as you get older. - Level. You pay the same price for the term of the policy.
Combining cover. Some insurers offer discounts to customers with multiple policies.
What are the 3 main types of life insurance?
There are 3 types of life insurance: retail, direct and group.
Direct
This is when you buy a policy (like the ones above) directly from an insurer without the help of a broker, adviser or super fund.
It can be very cheap if you're still young and healthy
It's guaranteed renewable
Can buy online or over the phone
Cover can be more expensive than buying through a broker (retail)
More effort to required understand cover and conditions
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.
Can you get cheap life insurance without a medical exam?
Yes, you can get life insurance without taking a medical exam. And while there are some advantages to going down this path, there are also some pitfalls.
Pros
Straightforward application process
Convenient for people who know exactly what they need in a policy
Little to no medical underwriting is required
Convenient for people who understand how the specific policy works
Good for people who don't need the help of an adviser
Cons
Insurers make assumptions on your health and the level of risk you carry
Premium rates may be higher compared to a policy that has a more stringent medical underwriting process
You may find you're not covered for any pre-existing medical conditions you might have
How to get cheaper life insurance
Adopt healthy habits
Some life insurers have health and wellness programs, which offer rewards for healthy living as well as discounts on wellness products and services. For example, TAL lets you score ongoing discounts on your premium of up to 15% if you're able to keep your BMI between 19 and 29 (and you don't smoke).
Compare policies
You should compare your life insurance from time to time to see if you can save. Keep in mind that switching won't always be beneficial as you get older – it's generally better to get in early with life cover to avoid medical exclusions or premium loadings.
Bundle policies
Some insurers will offer discounts if you take out more than 1 policy with them or if your spouse takes out insurance through the company too. With Zurich, you can get a premium discount of 5% on each relevant policy.
Look for frequent flyer programs
Some insurers will integrate frequent flyer programs into their policies, so you can earn points for every dollar you spend on your premiums. For instance, Qantas Frequent Flyer members can earn 1 point for every dollar spent in premiums with OnePath Life Insurance
Apply coupon codes
Some life insurers will occasionally run promotional offers including some generous sign-up perks. Be sure to look for discounts and deals before you buy your policy, as you could save some cash.
Why you can trust Finder's life insurance experts
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
Frequently asked questions
According to our 2024 research, TAL was the cheapest life insurer overall. However, it's worth getting quotes from at least 4 insurers. Pricing differs depending on your age, health and smoking status.
The cheapest life insurance varies depending on your age, health and smoking status. However, as an example, TAL offers the cheapest life insurance policy for 60-year-olds out of the 15 providers we researched.
For some people, yes. That's why you should never buy life insurance based on price alone. Always make sure you read the product disclosure statement (PDS) carefully. Risks associated with cheap life insurance include the following:
Getting a policy that doesn't suit your lifestyle. You can get cheaper life insurance by telling your insurer you don't smoke, but if you do, then your policy might not pay out when you make a claim. Always be accurate, even if it's going to cost you more money upfront.
Not being covered for health conditions. Buying life insurance without a medical questionnaire may be quicker and easier, but it'll automatically exclude any pre-existing medical conditions. If you have any health issues, expect to pay more for your life insurance.
Underinsurance. Lots of Australians don't take out enough insurance for genuine financial security. While $250,000 worth of life insurance sounds great, that wouldn't even cover half of the average mortgage. Calculate how much life cover you need with our quick quiz.
In most cases, no. The ATO specifies that insurance premiums aren't tax deductible if the policy pays a benefit for physical injury. However, the lump sum payment typically isn't taxed.
Your premiums will generally be recalculated each year based on your risk and lifestyle factors. This is only the case if you have a stepped premium structure.
You can pay your life insurance premiums fortnightly, monthly or annually. In most cases, you can qualify for a discount if you can afford to make an upfront annual payment.
No. If you make a claim on a death policy, you don't need to continue paying.
Karen Eley is the founder of Women Talking Finance, which provides money coaching and financial literacy and education services. An experienced and former financial adviser who has worked in financial services industry for 22 years, Karen is a Certified Money Coach (CMC), holds a Bachelor of Accounting and an Advanced Diploma in Financial Planning and CFP.
To make sure you get accurate and helpful information, this guide has been reviewed by Karen Eley, a member of Finder's Editorial Review Board.
Gary Ross Hunter was 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, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
Gary Ross's expertise
Gary Ross has written 725 Finder guides across topics including:
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
James's expertise
James has written 255 Finder guides across topics including:
While it's possible to have multiple life insurance policies, can you receive payment from more than one if you claim? Read on to find out.
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You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
