Top 3 cheapest life insurance policies
Cheap life insurance can still be high quality. Take your time to compare benefits, request quotes, and find the policy that best fits your individual needs and budget.
TAL Accelerated Protection Life Insurance
Our verdict
TAL is definitely worth looking into. It's affordable, with industry-leading benefits and most claims are settled very quickly.
Pros
- TAL was the only brand we compared that doesn't limit your death benefit amount, as long as it's "financially justifiable".
- Of the 11 brands we compared, TAL was the cheapest on average, according to Finder research.
- More than 60% of TAL claims were paid out within 2 weeks - the most of any brand.
Cons
- TAL's maximum entry age is 74. This is higher than average, but some brands allow entry up to 79.
- TAL declined 12.4% of claims in the first half of 2024 - more than any other brand.
- There's no discounts for buying online or holding multiple TAL policies.
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NobleOak Life Insurance
Our verdict
NobleOak is great for those who are looking for a great value life insurance policy. It offers a higher maximum cover limit than some other providers, has a brilliant claims acceptance rate as well as a faster claim payout time, yet it remains one of the cheaper brands on the market.
Pros
- NobleOak has a high maximum death benefit limit of $25 million - most brands cap payouts at between $1m and $2.5 million.
- Of the 11 brands we compared, NobelOak came in joint second for affordability.
- On average, Noble Oak's claim times were 1.9 months - faster than the 2.7 average.
Cons
- NobleOak doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
- It only offers stepped premiums, which increase in price as you age.
- The funeral benefit is a generous $15,000, but some brands offer up to $25,000.
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Budget Direct Life Insurance
Our verdict
Budget Direct is underwritten by NobleOak so a lot of the same benefits apply in terms of pricing, claims acceptance and processing time. It's another great option for those who want a cheaper option that still offers comparatively strong cover.
Pros
- Of the 11 brands we compared, Budget Direct came in joint second for affordability.
- Budget Direct has a maximum death benefit limit of $15 million - more than the majority of other brands we compared.
- Budget Direct's average claim time of 1.9 months is faster than the 2.7 industry average.
Cons
- The maximum entry age for Budget Direct policy is 69 - but some brands allow entry up to 79.
- Budget Direct doesn't offer any financial benefit if your child is critically ill or injured, whereas some brands offer coverage.
- The $15,000 funeral benefit is average. Some brands offer up to $25,000.
Read reviewWhat can life insurance cover?
Life insurance pays out a lump-sum when you die. But, most policies offer extra benefits that you might not know about. Some common benefits include:
- Terminal illness benefit - Get your lump-sum benefit in advance, if you're diagnosed with a terminal illness and likely to die within a certain time frame.
- Funeral advance benefit - Get a portion of your policy benefit paid out to your family as soon as you die, so they can cover the cost of your funeral.
- Counselling benefit - Some brands offer a payment for counselling to you or your family if you're diagnosed with a terminal illness or die.
- Child illness or injury benefit - Some brands offer payment if your child is severely injured or falls critically ill, so you can take time off work to care for them or cover medical expenses.
You can also choose to add additional types of cover to your life insurance, including:
- Total and permanent disability - Pays a lump-sum benefit if you suffer a serious illness or injury which will likely prevent you from working in future.
- Trauma insurance - Pays a lump-sum if you suffer a specific injury or illness.
- Income protection - Pays a monthly benefit, which is typically between 70% and 80% of your wage - if you're unable to work due to illness or injury.
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.
How to save on your life insurance premium
Compare policies
The best way to save money on your life insurance is to compare different policies, taking both price and benefits into account. Our cost research showed some life insurance brands were twice the price of others, even though the expensive policy wasn't as strong as the cheap one.
Lower your insured amount
Reducing the potential pay-out your family would receive is the fastest and easiest way to lower premiums. Figure out the minimum amount your family would need to live comfortably if you died, and work from there.
Adopt healthy habits
Your life insurance premium takes your lifestyle and behaviours into account when determining your premiums. If you're a smoker, you'll pay more. If you adopt healthy habits, you could pay less. Some insurers have health and wellness programs which offer rewards for healthy living.
"I cancelled the life insurance inside my super because it eating into my retirement savings, it would have expired when I turned 65 and the premiums were going up every year. I found it was much better value to get a standalone life insurance policy by choosing level premiums and the payout amount myself."
FAQs
Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds. See full bio
Nicola's expertise
Nicola has written 239 Finder guides across topics including:
- Personal finance
- Personal insurance, including car, health, home, life, pet and travel insurance
- Commercial business insurance
