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*
  • 2024 Finder award winner for best life insurer
  • No set limit on max cover *According to Finder research
Best for customer satisfaction

Medibank

Finder Award
  • 2024 Finder Customer Satisfaction award winner
  • 24/7 access to Medibank Nurse service service
  • Medibank health members get 10% off
Best for value

Budget Direct

  • 3rd cheapest policy on average*
  • $15,000 funeral benefit
  • Add up to $5mil cover for TPD^ *According to Finder research
    ^Total and permanent disability
Best for features

RACWA

  • Higher than standard max cover limit of $25mil
  • Access RAC benefits like money off fuel
  • Add up to $5mil cover for TPD^ ^Total and permanent disability

The best life insurance for you will depend on your budget and personal circumstances. Our experts have chosen a bunch of picks that will suit a range of people, but these should only be used as a guide. You should always read the product disclosure statement (PDS) to know if a product is a good fit for you.

Best life insurance in December 2024

According to Finder research, the best life insurance providers are:

  1. Best life insurer: TAL life insurance
  2. Best for customer satisfaction: Medibank life insurance
  3. Best for value: Budget Direct life insurance
  4. Best for features: RACWA life insurance
  5. Best claims experience: NobleOak life insurance

Best life insurer: TAL life insurance

TAL logo
Best Life Insurance

Our verdict

Pros

  • TAL won the 2024 Finder Award winner for best life insurance provider.
  • It's a great value policy; includes decent coverage with high benefit limits, yet remains one of the cheapest policies we could get online quotes for.
  • There is no set limit for the maximum cover available - it's the only insurer to do this.
  • Generous funeral benefit of $25,000. Most other providers only pay up to $15,000.

Cons

  • TAL has a below average claims acceptance rate of 87.6%. The industry average is 91.1%.
  • Total and permanent disability cover can be added for up to $3million. Other providers offer up to $5million in cover.
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Best for customer satisfaction: Medibank

Medibank Life Insurance
Best Life Insurance

Our verdict

Pros

  • Medibank won the 2024 Finder Customer Satisfaction award. That's because it scored highly in areas of customer satisfaction, ease of application, value for money and features & benefits.
  • 91% of Medibank customers surveyed said Medibank is a trustworthy and reliable brand.
  • Medibank members get 24/7 access to the Medibank Nurse phone service.
  • Medibank health members get 10% off their premiums each year.

Cons

  • Its $2.5million max cover cap is lower than some other providers.
  • It only offers stepped premiums which means your premium will increase as you age.
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Best for value: Budget Direct

Budget Direct

Our verdict

Pros

  • Budget Direct was highly commended in the 2024 Finder Life Insurance awards because it has thorough coverage but remains comparatively well priced.
  • It was the 3rd cheapest brand we found in our research.
  • It has a maximum cover limit of $15million and a funeral benefit of $15,000. It also offers up to $5million for total and permanent disability (TPD) cover. This is similar to many other, more expensive insurers.

Cons

  • Its maximum entry age is 69, which is young in comparison to other insurers.
  • There are cheaper insurers available if cost if your primary consideration.
Read review

Best for features: RACWA

RAC Life Insurance

Our verdict

Pros

  • RACWA offers up to $25million in cover. Most other brands offer up to a few million.
  • You can opt to add on up to $5million for total and permanent disability cover. Most offer lower limits than this.
  • RACWA members get access to RAC benefits, including discounts on shopping, accommodation and money off fuel.
  • RAC is WA based but it services all of Australia.

Cons

  • It only offers stepped premiums so your premiums will increase as you age.
Read review

Best claims experience: NobleOak life insurance

NobleOak
Best Life Insurance

Our verdict

Pros

  • NobleOak has a high 98.8% claims acceptance rate. This is above the industry average of 91.1%.*
  • It has a faster claim payout time of 1.9 months — the industry average is 2.7months for policies bought directly through an insurer.
  • NobleOak has fewer disputes than average at just 7.5 disputes per 100,000 lives insured. The industry average is 26.5 disputes per 100,000.

*Claims for policies bought directly through the insurer

Cons

  • NobleOak only offers stepped premiums, there's no option to have level premiums. This means your premiums will increase as you age.
  • TAL was a few dollars cheaper on average.
Read review

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 November 2024.

$160

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

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.

BrandOverall satisfactionTrustworthy/reliable
Medibank★★★★★ 4.2791%
AAMI★★★★★ 4.1888%
ahm logo★★★★★ 4.1694%
ANZ★★★★★ 4.1494%
Suncorp★★★★★ 4.0991%

How to find the best life insurance policy

  • Make a list of debts owing. Make a list and know what your loved ones would need to be financially stable in the event of your passing. This should take into account any mortgages, home loans, car loans, etc. This will let you know what the minimum amount for cover should be and this will help narrow down your search.
  • Decide if you want cover for other unexpected events. This includes things like trauma cover, total and permanent disability cover and income protection. This will help you know if you should look for a policy with lots of add ons or if a simple policy will suit you just fine.
  • Know the state of your health. Your life insurance premium is largely dictated by the state of your health so to understand how to best go about getting cover, it can be helpful to know what kind of health you're in. The healthier you are, the more options you have. If you've got pre-existing conditions then you might like to get life insurance via a broker or look into options via your super.
  • Compare at least 3 different options. The cost of life insurance can vary hugely between providers so it's important to get at least 3 different quotes so you have a good idea of what's out there. The admin can be a bit frustrating but it can be really costly to not take the time to compare.

FAQs

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.
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Written by

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

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Co-written by

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 644 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living

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