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.
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 15 different insurers and reviewed pricing for both male and female smokers and non-smokers in NSW. In total, we ran more than 170 life insurance quotes for a $500,000 policy. TAL was the cheapest brand overall. It also scored highly for features which is why it won the 2024 Finder Award for life insurance.
Top pick for health support: 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).
Optional Total and Permanent Disability (TPD) cover. Max cover $1.5 million Optional Trauma cover
Claims acceptance rate: Data not available
Average claims processing time: Data not available Maximum cover amount: $2,500,000 Terminal illness benefit: $2,500,000 Funeral benefit: $15,000 Maximum entry age: 70
We selected Medibank because it's offering a potentially very helpful benefit that you can't get access to with any other life insurer we researched. It also gives you a discount if you're a Medibank health insurance member. ahm offers a similar discount but it doesn't have as high a maximum payout limit ($1.5 million).
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.
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 was a highly commended brand in our 2024 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 74. Most stop offering cover at 65.
It also has a strong claims record. We sourced this information from APRA's claims statistics, released April 2024.
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.
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 analysed 200+ features across 15 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 (it is the underwriter of RAC life insurance). In other words, if you want a little more for your money, you should consider RAC.
Top 5 life insurance brands for customer satisfaction in 2024
We asked 500+ Australians to rate their life insurer for customer service, value for money and more — these are the winners.
Brand
Overall satisfaction
Trustworthy/reliable
★★★★★ 4.27
91%
★★★★★ 4.18
88%
★★★★★ 4.16
94%
★★★★★ 4.14
94%
★★★★★ 4.09
91%
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.
"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
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.
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 die or become terminally ill. You can nominate anyone as your beneficiary (although you can't nominate anyone as a beneficiary if the policy is owned via your super). 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 be covered 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.
Funeral benefit
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 payment if you need to take time off work due to an 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 once. A lump sum goes to the other policyholder in most cases.
Joint life insurance can be a cheaper option than 2 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 though it will increase in line with inflation. You'll usually pay more in the beginning but it offers more certainty over time. Only a few direct insurers in Australia offer level premiums.
Loading
Essentially, you have to pay a bit more to cover your pre-existing 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, while 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 die. 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 medical 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, it'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 1 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 policies can 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 start on the smaller side, and reach 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.
Underwritten
With an underwritten life insurance policy, your application is assessed upfront. A policy that isn't underwritten is assessed at the time of a claim.
Frequently asked questions
Choosing the best life insurance policy for you will depend on your individual needs and circumstances. Some factors to consider when selecting a policy include:
Coverage amount: Make sure the policy provides enough cover to meet your family's needs.
Premiums: Consider the cost of the premiums and whether they fit within your budget.
Policy features: Look for policies that offer additional features, such as ongoing rewards or a choice between stepped or level premiums.
Insurer reputation: Research the insurer's reputation and financial stability to ensure that it will be able to pay out claims when needed.
According to the latest Australian Prudential Regulation Authority (APRA) data Zurich has one of the highest claims acceptance rates at 97% when bought directly through an insurer. However, if you're interested in the highest limits to insure, look at TAL. It has no maximum benefit cap.
Life insurance is a contract between an individual and an insurance company, where the individual pays a premium in exchange for a lump sum payment to their beneficiaries upon their death. This payment can be used to cover expenses such as funeral costs, outstanding debts and ongoing living expenses for dependants.
There are several types of life insurance available in Australia, including:
Term life insurance: Provides coverage for a set period of time, usually up to the age of 99 (or indefinitely if you keep paying your premiums).
Trauma insurance: Provides a lump sum payment if the insured is diagnosed with a specific medical condition, such as cancer or a heart attack.
Note that whole life insurance, which provides coverage for the entire life of the insured plus an investment component, is no longer offered in Australia. It's still popular in overseas markets but was phased out here when the government introduced superannuation.
The amount of life insurance coverage you need will depend on your individual circumstances, such as your age, income, debts and dependants. A general rule of thumb is to have coverage equal to 10–12 times your annual income. However, it's important to speak with a financial adviser or insurance professional to determine the appropriate amount of coverage for your specific needs.
This will vary from person to person depending on your needs. NobleOak has a high entry age limit of 74 which can be good for seniors looking to take out a life insurance policy.
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.
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 648 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 212 Finder guides across topics including:
Are you thinking of cancelling your life insurance policy? There are a few things that you need to be aware of before surrendering an important protection cover for you and your loved ones.
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Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
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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.
