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The best families deserve the best life insurance

It's no fun to think about, but even less fun if you don't. We analysed 15 life insurers – here's the best ones.

Mom and child giving dad a haircut
Best life insurer

TAL

Finder Award
  • Cheapest policy on average
  • No set limit for maximum cover - only provider on the market to offer this
  • 2024 Finder Awards winner
Highly commended

Medibank

Finder Award
  • 24/7 access to Medibank Nurse phone service
  • Medibank health members save 10% each year
  • Up to $2.5 million payout
  • Winner in Finder's 2024 customer satisfaction awards

Best life insurance in November 2024

Finder's life insurance methodology

Gary Ross Hunter
Expert picks selected by Gary Ross Hunter – insurance and innovations editor at Finder

Best life insurer: TAL life insurance

TAL logo
Best Life Insurance

Pros

Cons

  • Zurich and NobleOak also offer cheap cover. They were a few dollars more expensive in our awards research.
  • Claims acceptance rate of 86.4%. The average is 90.7%.
  • Some negative reviews online; in part because it's Australia's largest insurer, with 33% of the market share.
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Top pick for health support: Medibank life insurance

Medibank Life Insurance

Pros

  • 24/7 access to Medibank Nurse to talk about any health concerns.
  • If you’re a Medibank health member you can get a 10% discount each year.
  • Get up to $2.5 million in cover – that's $1 million more than AAMI, Suncorp, ahm, Insuranceline and Zurich.
  • Winner of Most Loved, Best Value and Legendary Service categories in the Finder 2024 customer satisfaction awards.

Cons

  • $2.5 million cap is lower than NobleOak, RAC and TAL.
  • Only offers stepped premiums (increase as you age).
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Highly commended: NobleOak life insurance

NobleOak
Best Life Insurance

Pros

  • 94.9% of claims paid out in the latest period. The industry average is 90.7%.
  • Get up to $25 million in cover – most offer up to $1.5 million.
  • Above-average claims processing time of 0.9 months. The industry average is 2.5 months.

Cons

  • Only offers stepped premiums (they increase as you age).
  • Out of 190+ quotes, TAL was typically cheaper on average, although only by a few dollars.
  • NobleOak has a $25 million life insurance cap. TAL has no cap.
Read review

Top pick for features: RAC life insurance

RAC Life Insurance

Pros

  • Get up to $25 million in cover. The average is $1 million.
  • Add up to $5 million for total and permanent disability cover. Out of the 10 insurers we researched, that's double the average.
  • Access RAC benefits – discounts on shopping, accommodation and money off fuel.
  • RAC is WA based but services all of Australia.

Cons

  • It's competitively priced. However, TAL and NobleOak tend to be slightly cheaper according to Finder Awards research.
  • Only offers stepped premiums (these increase as you age).
  • It has a $25 million benefit cap. TAL has no cap.
Read review

Get help finding the best life insurance

Life insurance can be daunting. It's a big decision and there's a lot of confusing and intimidating jargon.

To make your decision easier, our insurance experts have analysed 15 life insurance policies.

The shortlist is based on 2024 Finder Awards, customer reviews and APRA data. All the policies selected can pay your beneficiaries a lump sum if you pass away.

There are 24 life insurance companies in Australia, according to the Australian Prudential Regulation Authority. We've only analysed direct life insurance policies. These are ones that can be bought directly from an insurer, as opposed to through a broker.

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.

How to find the best life insurance

Step 1: Choose your policy type

There are three ways to buy life insurance: retail, direct or through your super. They all have their pros and cons, so take the time to understand which one is right for you.

  • Retail: Get help from a broker
    Longer approval process but it's tailored to your unique circumstances and is medically underwritten.
  • Direct: Buy from an insurer.
    Online or over the phone. Shorter approval process as there's usually little or no medical underwriting.
  • Super: Access via your superannuation.
    Automatic acceptance. No upfront costs, but eats into your retirement funds. Less comprehensive cover.

Step 2: Compare policies

Use Finder's online life insurance tool to compare life insurance. Our table shows key features at a glance but click "view details" and you'll see a more in-depth breakdown of each policy.

Step 3: Be honest

Don't be tempted to lie if you have a smoking habit or any pre-existing conditions. If you do, you might find your claim is denied further down the line.

Step 4: Decide on a cover amount

Don't just pick a benefit amount arbitrarily. Sit down and work out how much your family would really need to get by if the worst was to happen.

Step 5: Read your PDS

We know it's boring but do your best. The PDS contains everything you need to know about your policy and insurers are getting better at writing them without all the jargon.

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 October 2024.

$163

Price based on 130+ responses about their monthly premium in October 2024.

Things you should compare when finding the best option for you

At first glance all life insurance policies might look the same, but there are a few key features to keep an eye on so you can see if you're getting the best option for you.

  • Maximum cover – Some life insurance policies will cap benefits at $1 million, but if you're looking for a higher pay out there are still options out there.
  • Minimum sum insured – On the flipside, if you're only looking for a modest payout, it's important to consider the minimum sum insured. Some insurers won't offer benefits for less than $100,000 but some might provide policies with a $50,000 benefit.
  • Maximum entry age – Finding life insurance gets a little trickier once you get into your 60s, with some insurers only accepting new customers under the age of 65. However, you might find one that has a maximum entry age of 69.
  • Optional extras – If you want to bundle your life insurance with other policies, such as TPD or trauma, it may be worth looking for companies that offer optional add-ons.

Tips on finding the best life insurance

"Work out the cover benefits you need and 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? Knowing these answers before you dive into your research can help to narrow down the search."

"Pick the right cover amount by working 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."

Why you can trust Finder's life insurance experts

freeYou pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
expert adviceYou save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
independentYou can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

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.

Frequently asked questions

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.

Jason Loewenthal's headshot
Karen Eley's headshot
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.
Gary Ross Hunter's headshot
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 659 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living
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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 225 Finder guides across topics including:
  • Car, home, life, health, travel and pet insurance
  • Managing the cost of living
  • Money-saving tips

More guides on Finder

  • Do I need life insurance?

    Learn about the different types of life insurance available in Australia, and when you might need to take out cover.

  • Is life insurance worth it?

    Having the right life insurance policy is invaluable if something happens to you unexpectedly. Find out what makes your policy worthwhile.

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