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Finding the best life insurance
Our insurance experts have analysed 10 popular life insurance policies to help you find the best life insurance policy for you and your loved ones. Our picks are based on 2023 Finder Awards and Australian Prudential Regulation Authority (APRA) data, an independent statutory authority that supervises various institutions including insurance. Keep in mind, what's best for you might not be best for someone else. You can use our top picks as a starting point, but you should find the best cover for your specific needs.
It paid out 96.90% of claims in the latest period. This was higher than the industry average of 92.4%. Zurich did pay 98% of claims, but NobleOak was faster at processing claims and had a lower policy cancellation rate.
You can get up to $25 million in cover which is more than the industry average. You can also get a policy up to the age of 69. Most stop offering cover at 65.
NobleOak's claims processing time was just 1.1 months. This was less than half as long as the industry average of 2.8 months.
NobleOak has affordable premiums as well as impressive features. You can opt for a death benefit of up to $25,000,000, which is one of the highest cover amounts in the Australian market. Plus, enjoy a fast payout within 5 business days on average.
Life insurance is more than just a one-off payout. NobleOak offers heaps of added extras such as a financial advice benefit, a counselling benefit and a funeral advance payment.
In most cases, you have to go through a broker for fully-underwritten life insurance. NobleOak is one of only 3 brands offering a direct policy that's tailored to you. (The other providers were RAC and Zurich.)
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 selected NobleOak because it came in first place in our life insurance awards. It won for several reasons. You can get up to $25 million in cover which is more than the industry average. You can also get a policy up to the age of 69. Most stop offering cover at 65.
It also has a strong claims record. We sourced this information from Moneysmart's bi-annual claims data, a government site run by the Australian Securities & Investments Commission (ASIC). These latest figures shown – issued on 18 April 2023 – refer to Death Cover bought directly from an insurer between 1 Jan 2022 to 31 Dec 2022.
Top pick for pricing for 30-50s: TAL life insurance
At $34 per month, TAL offered the cheapest life insurance policy on average for 30-50 year olds. It was cheaper than the 14 other insurers we got quotes for including NobleOak, Zurich and Suncorp. We ran quotes for both non-smokers and smokers.
TAL doesn't cap how much you can insure yourself for. All other insurers have a limit. For example, NobleOak offers the second largest limit, with a maximum cover amount of $25,000,000.
Zurich came a close second with an average price across these age groups at $35 per month, and NobleOak at $41 monthly.
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 sourced quotes from 10 different insurers and reviewed pricing for both male and female smokers and non-smokers in NSW, earning an annual income of $70,000. In total, we ran more than 250 life insurance quotes. TAL was the cheapest brand overall, based on an average of 3 age groups in our research. The age groups were: 30-, 40-, and 50-year-olds.
All figures shown here are average costs for $500,000 cover.
Top pick for claims acceptance: Zurich Ezicover Life Insurance
Its 98% claims acceptance rate is higher than any other life insurance in Australia and well above the industry average of 92.4%, according to the Australian Prudential Regulation Authority (APRA).
It's good if you want a cheap policy from a well-known insurer. According to our 2023 research, Zurich consistently offers some of the cheapest life insurance policies in Australia.
It has a very simple application process and a calculator that can help you estimate how much life insurance you might need. This can be really helpful as it can be difficult to work out.
Zurich doesn't offer optional add-ons such as total permanent disability or trauma cover. If you want to pay extra for options, you should look at a different life insurer.
Unlike some insurers, it doesn't ask for any medical tests before or after your application. This sounds convenient but it can mean some exclusions are added to your policy.
If they agree to cover you, they may refuse to cover you for certain conditions. For example, if you do a dangerous sport as a hobby, it may agree to cover you but not for any claims related to that dangerous activity. Any exclusion will be outlined to you in your policy schedule.
No Total and Permanent Disability (TPD) cover No Trauma cover Claims acceptance rate: 98% Average claims processing time: 3 months Maximum cover amount: $1,500,000 Terminal illness benefit: $1,500,000 Funeral benefit: $15,000 Maximum entry age: 69
We looked at the latest 2023 Australian Prudential Regulation Authority (APRA) to select this expert pick. Zurich Ezicover had the largest claims acceptance rate. We didn't include TLIS in our records because we could not find any products in Australia where it is the underwriter.
Its policies are also issued by NobleOak, one of Australia's most popular providers – except you also get access to ongoing RAC benefits which include discounts on shopping, accommodation and money off fuel.
It's competitively priced, the third cheapest life insurance policy, according to our Finder Awards. However, TAL and NobleOak tend to be slightly cheaper.
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: 69
We analysed 200+ features across 10 different popular life insurance policies including NobleOak, TAL, Allianz, Insuraneline and Suncorp. RAC came out on top because it offers a higher terminal illness benefit limit and maximum cover benefit limit. You also get benefits as an RAC member. Aside from these benefits, NobleOak offers identical cover. In other words, if you want a little more for your money, you should consider RAC.
You get an immediate discount of 17.5% on your life policy if you apply for AIA Viatlity membership at the same time. By staying active, you can get up to 20% off your premium in the future.
Unlock a host of lifestyle rewards with your membership, including 50% savings on gym memberships at Virgin Active and Fitness First
Get up to 50% cashback on selected flights; movie vouchers; spa and beauty e-Gift cards, and more.
Optional Total and Permanent Disability (TPD) cover. Max cover Optional Trauma cover
Claims acceptance rate: Data not available
Average claims processing time: Data not available Maximum cover amount: No limit Terminal illness benefit: No limit Funeral benefit: $25,000 Maximum entry age: 75
We reviewed all the rewards programmes available in Australia and settled on AIA Life Insurance for its flagship wellbeing program, AIA Vitality. AIA impressed due to the breadth of its rewards programme and the fact you can score an upfront saving when taking out a policy.
Other reward schemes we liked were OnePath/Qantas frequent flyer points and TAL Health Sense, both of which you can read more about in our guide to life insurance rewards programs.
Want options? We've got you. The table below shows the 3 highest-scoring life insurance brands (out of 10) overall in the 2023 Finder Award for Best Life Insurance.
Here's how our experts assessed the Best Life Insurance category to pick the 2023 winner.
In total, we looked at 192 quotes. We then applied our algorithm to those 192 quotes to come up with an overall score for each brand. The highest-scoring brand was our winner.
Keep in mind: There's no single insurance brand that's best for everyone as all our needs are different – and what's best for you might not be best for someone else.
Selection and scoring
Quotes were obtained for a combination of the following profiles:
Age
Gender
Smoker
Occupation
40
Female
Yes
White collar worker
50
Male
No
White collar worker
50
Male
Yes
White collar worker
50
Female
No
White collar worker
50
Female
Yes
White collar worker
60
Male
No
White collar worker
60
Male
Yes
White collar worker
60
Female
Yes
White collar worker
60
Female
No
White collar worker
30
Male
No
White collar worker
30
Male
Yes
White collar worker
30
Female
No
White collar worker
30
Female
Yes
White collar worker
40
Male
No
White collar worker
40
Male
Yes
White collar worker
40
Female
No
White collar worker
Features were scored and weighted as follows:
Fully Underwritten Score
10%
Max Sum Insured Score
15%
Guaranteed Renewability Score
10%
Expiry Age Score
15%
Counselling Benefit Score
5%
Premium Cover Suspension Score
5%
Interim Accident Cover Score
10%
Options Score
10%
Funeral Advancement Score
5%
Max Entry Age Score
15%
The resulting scores were weighted as follows:
Smoker Quote Score 10%
Non Smoker Quote Score 20%
Features Score 70%
Editor's top life insurance pick for July 2023
In addition to our best life insurance picks, Finder's editor for insurance James Martin has reviewed life insurance policies in July 2023 and selected a policy that he believes is good value and worth considering.
Good option if you're settling down
What we like about TAL life insurance:TAL is the only brand on Finder who doesn't specify a maximum payout for death cover. This could give you more flexibility if, say, you've taken on a hefty mortgage and your regular bills are on the rise. Adding a high amount of cover will cost you more, but in return you could get valuable peace of mind for your family if they were suddenly a wage down.
Be clear on what you're looking for. Do you want a significant lump sum payout to make sure your family's looked after if you die or suffer a terminal illness? Is it important your policy comes with a funeral benefit that pays out quickly? Are you aware that taking out joint cover with your partner could unlock a premium discount of up to 10%?
Pick the right cover amount
Work out how much your family would need to get by – and maintain their lifestyle – if you were no longer around. Knowing how much life insurance you need means you'll avoid paying more than you should. Try our quick quiz to help you calculate how much cover you'll need.
Compare multiple policies
Use Finder's comparison tool to compare life insurance brands. View each policy's key features side by side and filter by the features that matter most to you. Or click "View details" to see a more in-depth breakdown of each policy. If you're not certain what you need or how to find the best cover, speak to a life insurance adviser.
Be accurate in your application
You'll need to be upfront if you smoke or have any pre-existing conditions. Not being accurate during your application can invalidate your policy. This means you or your beneficiaries could have a future claim rejected.
Read the Product Disclosure Statement (PDS)
The PDS (found on the insurer's website) contains the key points about your policy including its benefits, restrictions and exclusions. Knowing exactly what you're insured for will bring peace of mind. Thankfully, insurers are getting better at writing them without all the jargon.
While TPD isn't included as standard on life insurance policies, it's important to consider this optional cover. If you were to suddenly become disabled, the ongoing living costs faced by your family could stack up over the years. The payout limit on TPD insurance can vary greatly. I reviewed 12 policies and the payout limit ranged from $100k to $20m.
If you're a smoker, including vaping, you're classified as a high-risk applicant by all life insurers and your premiums will typically be much more than a non-smoker. If you can give up smoking for 12 months though, lots of insurers will agree to classify you as a non-smoker.
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We don't ask for your phone or email.
We've done 100+ hours of policy research to help you understand what you're comparing.
Your life insurance news update: July 2023
A recent report by Monash University found that Australians are skipping genetic screening tests because they’re worried it might impact their life insurance premiums.
Under the current guidelines, life insurance providers can require you to provide the results of your genetic tests for policies over $500k. They can deny you cover or charge you more based on the findings.
Monash University academic Jane Tiller said the government needs to protect consumers from genetic discrimination.
Need more help?
Life insurance is a big decision, but we've got heaps of guides that can help you find good cover for your needs.
There is no one-size-fits-all when it comes to getting life insurance. However, we crunched the numbers and identified the highest-scoring life insurance brands (out of 10 providers we researched) overall in the 2023 Finder Awards for Best Life Insurance. These are 1. NobleOak 2. TAL 3. RAC
The cost of life cover differs from person to person based on gender, age, income, health and lifestyle factors. To give you a clear indication of what it could cost you, we've calculated the average weekly costs for a non-smoker of different age groups and cover amounts. See the full costs breakdown here.
There's no set age when you should buy cover. Many people choose to get life insurance to cover a large debt, such as a mortgage. Other big life events, such as having children or going self-employed, are popular times.
In general, the longer you wait, the more expensive your premiums will be. That's because as you age, you're seen as a higher risk to an insurer.
Finder research suggests a healthy 30-year-old male could expect to pay $9.59 per week on average for $500,000 in cover. Whereas a healthy 30-year-old female may pay $6.70 per week on average.
Life insurance costs vary a lot depending on your circumstances.
Life insurance glossary: Key terms to know
A rundown of the tricky definitions for life insurance. Plus, what to look for when you're comparing.
Beneficiary
The person you've nominated to receive your life insurance payment if you pass away or become terminally ill. You can nominate anyone as your beneficiary. There can be more than one beneficiary and each beneficiary can receive different amounts.
Children's insurance
Covers your child for death, terminal illness or a serious injury or illness that's specified in your policy. Typically, children's cover needs to be added as an optional extra.
Finder looked at 16 policies on our database and found just a few give you the option of adding a child to a policy.
Cooling-off period
The amount of time in which you can cancel your policy after signing up – and get a full refund of any premiums paid. The vast majority of insurers offer a cooling-off period of up to 30 days.
Counselling benefit
Some insurers will pay costs for grief counselling sessions for you or your partner. Counselling benefits usually have a limit of around $1,000. It can be claimed after a death or terminal illness claim.
Exclusion
An exclusion is any specific risk or event that you can't claim for under your policy. Insurers can apply exclusions to certain pre-existing medical conditions. For example, they may not cover any claims related to mental health.
Exclusion period
How long you'll have to hold your insurance before a policy exclusion turns into a claimable event. For example, it's common for suicide to have a 13-month exclusion period.
Fully underwritten
With a fully underwritten life insurance policy, your application is assessed upfront. Whereas a policy that isn't fully underwritten is assessed at the time of a claim.
Pays a lump sum benefit – usually up to $15,000 – so your loved ones can meet the cost of your burial or cremation without using their own money.
You could look for a funeral policy offering a guarantee that any payout won't be less than the total you've paid in premiums. This is sometimes called a premium guarantee.
Guaranteed acceptance
You can get insurance without having to answer any health questions, or take a medical exam or blood tests.
Guaranteed acceptance policies, also known as auto-acceptance policies, will have an age eligibility requirement. This can range between 16 and 80 years of age.
Guaranteed Renewability
The insurer lets you renew your coverage each year, as long as you keep paying for your premiums. Many life insurers in Australia offer this peace of mind.
Income protection insurance
Income protection insurance pays a monthly wage if you need to take time off work due to a sudden accident or illness. Many insurers will pay up to 70% of your pre-tax income.
Inflation protection
This ensures your premiums keep up with inflation so that your amount of cover is worth as much by tomorrow's dollar. You can ask your insurer to switch off this automatic policy feature, but it could leave you underinsured.
Interim accident cover
Insures you while your life insurance application is being underwritten or waiting to be approved. Typically, interim insurance will cover you for up to 90 days.
Joint life insurance
A policy that covers 2 people, but it pays out one time. A lump sum goes to the other policyholder in most cases.
Joint life insurance can be a cheaper option than two single policies. But it's potentially complicated if a relationship ends.
Level premium
Your insurance generally won't increase in price as you get older. You'll usually pay more in the beginning but they offer more certainty over time. Only a few direct insurers in Australia offer level premiums.
Loading
Essentially, you have to pay a bit more to include your health condition, job or hobby in your policy. Any loadings will be offered during the life insurance application process.
Minimum cover
The smallest amount of insurance (or, sum insured) you can take out. Many insurers in Australia set a minimum cover level of $100,000.
Maximum cover
The cover limit offered by an insurer. It's the most you can be paid out after a claim. Maximum cover limits can range from $500k to $25 million. TAL told Finder it had "no set limit" for a payout.
Maximum entry age
The maximum age you can be to apply for life insurance. Common age caps are 64 or 65, but some providers go up to 70+.
Some insurers will require you to have a physical examination before you're approved; others will just need you to answer questions about your medical history on your application form.
Monthly benefit
A regular monthly payment if you're unable to work due to illness or injury. It's designed to replace a portion of your regular income. Monthly benefits are a common feature of income protection policies.
Mortgage protection insurance
Insurance that can cover your mortgage repayments if you have a serious illness or pass away. Mortgage protection will only cover your mortgage repayments, not all the other bills you'd need to pay if you lost your ability to earn an income.
Personal accident insurance
Insurance to replace your income if you are temporarily unable to work after an accident. This cover can be bought as a standalone policy. Keep in mind it won't cover you if you get sick and can no longer work.
Personal insurance
An umbrella term for the following 4 core types of life cover: Life insurance, Total and permanent disability (TPD) insurance, trauma insurance and income protection cover.
A condition you have, or have had, prior to taking out life insurance.
You may be able to get life insurance that includes cover for a defined medical condition. It's likely to cost you more. However, if an insurer thinks your condition is too high risk or isn't under control, they'll exclude it from your policy.
Premiums
The amount you pay an insurer for your cover. Premiums can be paid weekly, fortnightly, monthly or annually.
A policy option that lets you stop paying premiums entirely. You will typically lose all your cover while your policy is suspended.
Not all life insurance policies include a suspension of cover benefit. Check with an insurer directly.
Premium freeze
A premium freeze lets you stop your premiums from increasing as you age.
It's only available with stepped premium policies because the cost rises with age. By activating a premium freeze, your level of cover will drop over time.
Retail life insurance
Buying life insurance through a broker, who will give you tailored advice on securing cover. Buying a retail policy is one of 3 ways to get life insurance in Australia. The others are directly with an insurer or through your superannuation.
Salary continuance
You can receive up to 75% of your regular earnings each month to cover general living expenses if you can't work due to an accident, illness or injury
Salary continuance insurance is held within a super fund, and you'll pay your insurance premiums from your super balance rather than directly from your bank account.
Typically, to be classed as a 'non-smoker' you'll need to be free of any smoking products for 12 months, but this can vary between insurers.
Stepped premiums
How much you pay for your policy increases each year by a certain percentage. Most policies in Australia have stepped premiums. Yearly increases can range from 2% to 7%.
Term cover
A type of life insurance that provides a set amount of cover for a set amount of time (or, 'term'). The maximum cover offered by term policiescan range from $100,000 to $1 million.
Terminal illness benefit
An insurance which pays out a lump sum if you're diagnosed with an illness which cannot be cured, such as advanced cancer. Benefits can range from around $1 million to as much as $25 million in Australia. It's usually included with a life cover policy.
Total and permanent disability (TPD)
An insurance that pays a lump-sum (as high as $5 million) if you get sick or injured and become permanently disabled. In most cases, TPD cover is available as an add-on when you take out life insurance.
Trauma insurance
A type of insurance that pays out if you are diagnosed with a critical illness or suffer a life-changing injury that's listed in your policy. Examples can include cancer, heart attack and stroke. Trauma insurance pays up to $2 million as a lump sum.
Underwriter
When you apply for cover, the insurance underwriter assesses your level of risk and determines whether the insurer should offer you cover, as well as under what conditions that cover should be offered.
You could check to see if a policy has been underwritten by a major insurer, backed by many years of experience.
Why you can trust Finder's life insurance experts
We're free
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
James Martin is 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).
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