Live, laugh, life insurance

How we calculate Life Insurance Finder Scores

Read full methodology

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.

Thousands of people compare with Finder every month

4.69 average rating from 805 reviews

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How much does life insurance cost?

The average cost of a life insurance policy is $1,258 annually, according to Finder research of 11 providers.

The cost of your life insurance premium will depend on the following:

• • Your age
  • Your health and any pre-existing conditions
  • Your lifestyle choices, for example, if you're a smoker or if you exercise regularly
  • The level of cover you choose
  • How many optional extras you do or don't add on

The cost of life insurance is highly dependent on personal factors so your own annual premium is likely to be different to our average cost. This information should be used as a guide only.

Other types of life insurance

Total and permanent disability (TPD)

TPD covers you if you get severely injured or sick. For example, if you become blind or paralysed after a car accident and become permanently disabled.
Typical cover range: $50,000 to $5 million.

Trauma insurance

Trauma cover, sometimes called critical illness cover, is a policy add-on that pays a lump sum if you're diagnosed with a major medical condition, such as cancer or a heart attack.
Typical cover range: $500,000 to $2 million.

Income protection

Income protection insurance pays a monthly benefit if you're unable to work due to illness or injury. Usually, it will only pay up to 70% or 75% of your typical wage for a period of 2 or 5 years.

"I've never really thought about my life insurance, but after having a baby and buying a house in the same year I felt now was the time I needed to take out cover. Having a policy that would cover my mortgage payments is one less thing I now need to worry about."

Alex Holderness

Finder's head of publishing, parent and homeowner

Expert tips on comparing life insurance

People tend to underestimate the importance of life cover. With the right policy in place, your family's finances and wellbeing can be protected for decades. One feature I always tell people not to overlook is TPD cover. It isn't automatically included in a policy.

James Martin
Finder's life insurance editor

Life insurance is a policy you hopefully won't claim on for many decades, but what it buys you in the interim is peace of mind. It's important to consider what your debts look like and if your family could manage these without you. I'm married with three kids, and my life insurance policy gives me reassurance that if the worst should happen, my home will be paid off and my family won't have to deal with losing their home while they're grieving.

Sarah Megginson
Head of editorial

No one is ever really prepared for life's harsh surprises, but insurance can help soften the blow... Life insurance is about protecting what matters most. That's the people around you, rather than just material possessions like cars or boats.

Phil Thompson
Financial adviser at Skye Wealth

FAQs

• Which insurance company is best for life insurance?

  The best life insurance for you will depend on your personal profile and budget, however, we've done some research to help get you started. In 2024, TAL life insurance was the winner of our best life insurance award. This is because TAL offers competitive pricing and extensive benefit limits and coverage options. In short; it's well priced for such a good product.
  Keep in mind, you should always get your own quote and read through the product disclosure statement to know if this product offers the kind of coverage you're looking for.

• Is it worth getting life insurance?

  To be straight with you, only you can answer this one. Life insurance is one of those products you hope you never have to use because for it to ever be used, something terrible has to happen first. However, you may deem it 'worth it' for the peace of mind it brings you and your family. Life insurance can cover the cost of major debts like your mortgage in the event you're unable to do so yourself. For many, knowing your family would be financially stable in the event of your passing makes life insurance worth it. If you're not sure whether or not life insurance is necessary for you, this article can help you assess your needs and what your family would need in the event of your passing.

• Who gets a life insurance payout?

  A life insurance payout goes to the beneficiary; this is the person you choose at the time of taking out your policy. In the event of your death, the beneficiary — which can be 1 person or a selection of people — would get the payout.

• What happens if I cancel my life insurance?

  If you cancel your life insurance, you will no longer be covered as of the date you cancel. If you've paid your premium in advance then you may be refunded for the unused portion of it, minus any cancellation fees you may owe.

• Is it better to get a life insurance policy inside or outside of super?

  It's an individual assessment depending on your cashflow, retirement funding and tax situation. While it's often cheaper and easier to hold life insurance within super, it reduces the amount in your retirement fund. Additionally, the payout is usually small and the policies typically expire when you turn 65. With a traditional life insurance policy, the expiry age is usually around 99 or there is no expiry age at all, as long as you keep paying your premiums.

• I have a pre-existing condition. Can I still get life insurance?

  Yes, it is possible. If you have a pre-existing medical condition, there are insurers who will still cover you. But they might ask you to pay slightly higher premiums or exclude that condition from your cover. It's really important to disclose any condition you have when you apply for life insurance. Not doing so could void your cover.

• What is child life insurance?

  Child life insurance is a feature you can add to your life insurance policy for an added fee. It will pay out a financial benefit if your child dies or suffers a serious medical condition.

Why you can trust Finder's life insurance experts

Boring, but easy - we get it, getting life insurance probably isn't on your bucket list. We can't promise to make life insurance fun, but we sure do try make it simple. That's why we've spent 100+ hours of research on this guide.

Features obsessed - No one wants a junk policy, that's why we analysed the features of 10+ policies, and gathered 170 quotes to objectively score life insurance products. We've turned this into a simple rating out of 10.

No BS - You won't get any annoying calls, because we don't have a call centre. We're not owned by an insurer and pride ourselves on listening to real human experiences for all our research.

What is the Finder Score?

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other.

Our experts analysed 11 products and gave each one a score between 1 and 10. The scores are based on 13 features, including price.

• • • 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+ Satisfactory - These products might offer less value or command a higher premium than others in the market.
    • Less than 5 – Basic - These products might only offer a basic set of features or aren't very competitive on price.

Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.

To be eligible for a Finder Score, providers must provide us with quotes. We use the average price across 12 personas. The personas we collect quotes and use for the purpose of Finder Score are:

• Personas to calculate average price

  Age	Gender	Smoker/Non Smoker
  25	Male	Non Smoker
  35	Male	Non Smoker
  45	Male	Non Smoker
  25	Female	Non Smoker
  35	Female	Non Smoker
  45	Female	Non Smoker
  25	Male	Smoker
  35	Male	Smoker
  45	Male	Smoker
  25	Female	Smoker
  35	Female	Smoker
  45	Female	Smoker

• Finder Score weightings

  Feature	Weights
  Price	30.0%
  Interim Cover	5.0%
  Optional TPD Cover	2.5%
  Optional Trauma Cover	2.5%
  Guaranteed Renewability	5.0%
  Counselling	5.0%
  Child Benefit	5.0%
  Future Insurability	5.0%
  Online Quotation	5.0%
  Repayment Methods	2.5%
  Serious Illness	2.5%
  Terminal Illness	2.5%
  Maximum Cover	25.0%
  Funeral Benefits	2.5%

The Finder Score methodology is designed by our insights team and reviewed by our editorial team. We review the products objectively. Commercial partnerships do not affect the score.

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 edited by Jason Loewenthal and reviewed by Karen Eley, a member of Finder's Editorial Review Board.

Written by

Gary Ross Hunter

Editor, Insurance

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 649 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

James Martin

Editor

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 213 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips