Whole life insurance

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What different scores mean

9+

Excellent

These products offer great value, with a good score across both features and price.

7+

Great

These are competitive products, though they didn't quite get top scores.

5+

Standard

These products might offer less value or command a higher premium than others in the market.

0+

Basic

These products might only offer a basic set of features or aren't very competitive on price.

Whole life insurance was popular in the '70s and '80s, but it's no longer sold in Australia. A reliable alternative that can provide a safety net for you and your family is term life insurance, which is now used instead of whole life insurance.

The main difference between the two is that whole life insurance used to include an investment portion, which Aussies could withdraw funds from when they retired. When superannuation was made compulsory, there was no longer any need for that investment portion of the policy.

How did whole life insurance work?

Before superannuation was made compulsory, most workers used whole life insurance as a means of providing funds for when they retired, by surrendering their policies so they could access the policy’s cash value. A portion of the premium paid for whole life assurance having been put aside for investment purposes and another to fund the insurance cover.

Cost difference between whole life insurance and term life insurance in Australia

Whole life insurance was considerably more expensive to low cost term insurance, due to the cash value component. However, it is important to note that while the guaranteed earnings you can get with whole life insurance is attractive, often the interest you receive from the investment portion does not pay any more than when you have savings account with a bank.

However, some might still consider whole life to be a worthy investment in Australia, this is because whole life was seen as forced savings and by having a cash value component. Policyholders had the assurance that the life insurance company would have to pay out on whole life insurance one way or another, either in event the life insured’s death or when the policy was surrendered.

What were the advantages and disadvantages of whole life insurance?

What's the difference between whole life and term life insurance?

Similar to whole life insurance, term life cover provides a lump sum death benefit in the event that the policyholder passes away while the policy is still active. There are some notable differences between whole life and term life insurance. These include:

How long can term life insurance be taken out for?

You have the power to select a period of cover most suitable for your situation. Applicants usually select terms of 5, 10, 15, 20 and 30 years. Another benefit of term life insurance is that you will continue to be insured in the future as long as you meet the premium payments when due, regardless of any changes to your health, occupation or pastimes.

Get a quote for life insurance

Term life insurance is considered more affordable than whole life insurance, and it's still possible to find a policy with no age limits. The options below also have an expiry age of at least 99 so long as you keep paying your premiums.

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Finder Score	Maximum Cover	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover
Promoted Finder score 9.3 Excellent Medibank Life Insurance	Finder score 9.3 Excellent	Maximum Cover $2.5 million	Funeral Benefit $15,000	Optional TPD Cover $1.5 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get a 10% discount if you're already a Medibank health insurance member. T&Cs apply.	Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. It also won Most Loved, Best Value and Legendary Service categories in the Finder 2025 Customer Satisfaction Awards.	Get Quote View details Compare product selection Compare	loading
Promoted Finder score 9.9 Excellent TAL Accelerated Protection Life Insurance Finder Award	Finder score 9.9 Excellent	Maximum Cover No set limit	Funeral Benefit $25,000	Optional TPD Cover $3 million (maximum cover)	Optional Trauma Cover Yes	Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. T&Cs apply.	Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older).	Get Quote View details Compare product selection Compare	loading
Promoted Finder score 9.5 Excellent NobleOak Life Insurance	Finder score 9.5 Excellent	Maximum Cover $25 million	Funeral Benefit $25,000	Optional TPD Cover $5 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get 2 months free on eligible NobleOak cover. For new customers and offer ends 14 Jun 2026. T&Cs apply.	Our verdict: Highly commended in the 2026 Finder Life Insurance Awards, offering up to $25 million in life cover, one of the highest payouts available.	Get Quote View details Compare product selection Compare	loading
Finder score 7.5 Great Zurich Ezicover Life Insurance	Finder score 7.5 Great	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover	Optional Trauma Cover No	Discount: Get your first month free, plus a complimentary legal will. For policyholders who purchase an eligible Ezicover Life Insurance or Income Protection policy from 27 Jan 2023 and maintain cover for at least 12 months. Offer must be redeemed while the policy remains active. T&Cs apply.	Our verdict: Good if you want a cheap policy from a well-regarded insurer – its 98% claims acceptance rate is higher than any other provider on Finder. Zurich keeps things simple: unlike others, it doesn’t go in for optional add-ons such as TPD or trauma cover.	Get Quote View details Compare product selection Compare	loading
Finder score 7.5 Great Real Life Insurance	Finder score 7.5 Great	Maximum Cover $2 million	Funeral Benefit $20,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes	Get 10% cash back of the premiums you've paid after your 12-month anniversary with The Real Reward™. T&Cs apply.	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams.	Get Quote View details Compare product selection Compare	loading
Finder score Not scored yet Australian Seniors Life Insurance	Finder score Not scored yet	Maximum Cover $0.2 million	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover No	Our verdict: Australian Seniors lets you take out cover up to the age of 79. No medical exams or blood tests needed to apply. Keep in mind: Low cover limit of up to $200,000 and no option to add TPD or Trauma cover.	Get Quote View details Compare product selection Compare	loading
Finder score 8.5 Great ahm Life Insurance	Finder score 8.5 Great	Maximum Cover $1.5 million	Funeral Benefit $15,000	Optional TPD Cover $1 million (maximum cover)	Optional Trauma Cover Yes	Discount: Get a 10% discount if you're already an ahm Health Insurance member. T&Cs apply.	Our verdict: ahm offers a simple application process. Be approved online or over the phone. No medical or blood tests needed to apply.	Get Quote View details Compare product selection Compare	loading
Finder score 6.8 Standard AAMI Life Insurance Most Loved	Finder score 6.8 Standard	Maximum Cover $1.5 million	Funeral Benefit $10,000	Optional TPD Cover	Optional Trauma Cover Yes	Save up to 10% on premiums every year for the life of your AAMI Life Insurance policy. T&Cs apply.	Our verdict: There’s flexibility with AAMI as you can add another adult to your cover, with a competitive limit of $1.5 million. Easy application process with no medical exams.	Get Quote View details Compare product selection Compare	loading
Finder score 4.8 Basic Real Term Life Cover	Finder score 4.8 Basic	Maximum Cover $0.1 million	Funeral Benefit $20,000	Optional TPD Cover	Optional Trauma Cover No	Continue View details Compare product selection Compare	loading

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Frequently asked questions

• What is a whole of life insurance policy?

  Whole of life insurance, or simply whole life insurance, provided cover for the insured's entire life as long as the premiums were paid. A portion of the premium paid went towards an investment component that could be accessed when required; most had a maturity date when they were accessible.

• Does Australia have whole life insurance?

  No, whole life insurance is no longer available in Australia and may only be held by those who purchased policies before 1992.

• Why is whole life insurance not available in Australia?

  The main difference between whole life and the now more popular term life insurance was that you could invest a portion of it and withdraw funds from this when you retired.

  Once superannuation was made compulsory in 1992 there was no longer any need for that investment portion of the policy, and term life insurance became more popular.

• What is the main disadvantage of whole life insurance?

  One of the main disadvantages of whole life insurance was that premiums were much higher compared to term life insurance.

• Which is better term or whole life insurance?

  Whole life insurance has decreased in popularity and is no longer available in Australia. Term life insurance is now considered a better way to plan for a death benefit payment to help your family cope financially if life does take a turn for the worse.

To make sure you get accurate and helpful information, this guide has been edited by Gary Ross Hunter and reviewed by Karen Eley, a member of Finder's Editorial Review Board.

Written by

Richard Laycock

Editor

Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance. See full bio