10 Best Life Insurance Companies In Australia
10 Best Life Insurance Companies In Australia

The best life insurance is the one that suits your requirements and fits your budget while providing you peace of mind that your family will be protected if you pass away or get diagnosed with a terminal illness. There are various factors to consider before choosing a life insurer, including their policy features and benefits and the short and long-term affordability of your premiums.

To find the most affordable life insurance policy that meets your family’s requirements, you might want to review some of the major life insurance brands available in Australia. You’ll generally want to find a comparison of the top life cover companies by market share, price, and customer satisfaction.

How to choose the best life insurance with cheapest quotes and good services

Suited to your specific requirements

Make sure the company you choose provides you with enough coverage so that your family can keep living to the accustomed standard of living they are accustomed to. If you’re single, make sure your cover is enough for outstanding debts.

Included free built-in policy benefits

Also, you might want to consider a life insurance provider that offers additional benefits such as a funeral advancement benefit, so your final expenses can be paid while they await payment for the remainder of the lump sum. There are a number of these benefits that may be of benefit to you.

Terms and conditions

Make sure you carefully review the company’s Product Disclosure Statements (PDS), so you know exactly what is and what is not covered. The offerings from a direct insurer vs a retail insurer and a group super fund are very different, which is why it’s so important that you carefully read the terms and conditions.

Policy price

Calculate whether you’ll be able to afford the policy premiums now and in the future. If you’re looking for short-term affordability, a stepped premium style might be best for you. On the other hand, if you’re able to start with higher premiums, which don’t increase every year due to your age, then a company offering level premiums might be better.

Discounts and rewards

Consider companies that add more value with healthy living rewards – helping you save on your premiums while encouraging you to live a healthier life. Although reward programs should not be the only deciding factor when choosing a company, it does add that something extra.

Quality ratings

Ratings are given by an independent entity such as Standard & Poors. While an evaluation from an independent source, independent source evaluation does not tell you how good a company is, it does help you measure the insurers’ insurers’ creditworthiness, which further indicates whether a company will be able to pay claims now and in the future.

Customer reviews

Read customer reviews and complaints about the various companies to determine how their past and current members experienced them.

Customer Service

You might want to consider how easy or difficult it is to talk to someone. When you have questions or need to submit a claim, it’s essential to get hold of a competent customer representative to help you.

What are the top 10 best life insurance companies in Australia?

(Cheapest Quotes and Good Services)

1. NobleOak Life Insurance

2. Medibank Life Insurance

3. ahm Life Insurance

4. Guardian Life Limited

5. TAL

6. AIA

7. Resolution Life

8. Westpac Life Insurance Services Limited

9. MetLife Insurance Limited

10. MLC Limited

********

Top 10 Best Life Insurance Companies In Australia: Cheapest Quotes and Good Services

1. NobleOak Life Insurance

Photo: campaignbrief
Photo: campaignbrief

Mozo’s 2021 Life Insurance Company of the Year, NobleOak, was first established more than 140 years ago, making it one of Australia’s longest-standing life insurers. Backed by one of the leading global reinsurers, Hannover Life Re, NobleOak has made it its mission to make life insurance more affordable and accessible to Australians. From Life Insurance to Income Protection Insurance, NobleOak offers a wide range of competitive insurance products.

NobleOak’s life policy has a generous maximum cover level of $15 million. On top of this, there’s a $15,000 funeral advance benefit, plus a financial advice benefit, a grief counseling benefit, and an advance on death cover if you become terminally ill. There’s even the option to freeze your premium amount so what you pay for the relevant cover stays the same as you age - just bear in mind this could mean your coverage also changes in line with what you're paying. New policies can only be taken out up until the age of 69, but they're renewable up until age 99.

2. Medibank Life Insurance

Photo: camberwellshopping
Photo: camberwellshopping

Medibank became a trusted brand because they care for the health and well-being of every customer. Australians trust the provider that pays billions of dollars of claims whilst also providing clinical services.

Getting a cover is easier when your provider knows and understands your needs and worries. Worried about high prices? Medibank uses its strength to keep their products affordable.

As an industry leader, trust that you’ll have 24/7 cover – worldwide – and have up to 5 beneficiaries. Medibank health members enjoy a 10% discount. Medibank protects your well-being and your family’s future through these types of cover:

Life Insurance

Prepare for passing away or getting terminally ill with this cover. Medibank Life Insurance is available for all Australian residents aged 16-70. Depending on your age, you can get benefits up to $2.5M. These benefits increase every policy anniversary by 5%.

As expected of an industry leader, Medibank offers flexibility for Australians who need more than just a death cover. Working permanently for at least 20 hours a week? Add a Permanently Unable to Work Cover if you’re between 16 and 60 years old. Trauma cover is available for Australians aged 16-80.

Starter Life Insurance

Is this your first time getting a cover? Try Medibank’s basic cover. It’s easy to apply, and there are no medical and blood tests required. This is an automatic acceptance policy and renewable for life as long as you pay premiums.

This cover is perfect if you have no pre-existing conditions. Depending on your age and income, you can get benefits from $50,000 to $250,000, while an advanced benefit of $15,000 covers for funeral expenses.

Income Protection Insurance

No one knows when you’ll be ill or injured. This insurance cover replaces up to 75% of your monthly pre-tax income to a maximum of $7,500. Death benefits are thrice the monthly insured amount.

This cover is available to Australian residents aged 18-59 and expires after you turn 65. The Standard Cover is available for working Australians in permanent paid employment or self-employment.

You can even tailor-made this cover for your needs. Select a waiting period of 30 or 90 days. You can also choose how long you’ll receive the benefits from 1 year, 2, or 5 years. Adding benefits for rehabilitation and total and permanent disability is also possible.

Funeral Insurance

Medibank accepts all Australian residents aged 18-79 for this policy. Your loved ones will receive a lump sum payment from $3,000 to $15,000 to cover funeral and other immediate expenses. Although a large provider, premiums never increase unless you change your cover. Premiums even decrease by 3% for holding the policy continuously for 5 years.

3. ahm Life Insurance

Photo: ahm
Photo: ahm

ahm's life insurance may not be as widely known as its health plans, but the insurer has some competitive prices and decent cover options in its 2 core life insurances. Being part of the global insurer Swiss Re, you can rest assured that your policy is in safe hands.

Swiss Re, who owns both Medibank and ahm, notched up a policy cancellation rate for death cover of just 9.3% (against an industry average of 13.3%) according to the latest stats from Moneysmart, the Australian government agency.

Receive a benefit amount in the event of: death, serious accidental injury (e.g. permanent loss of sight or limbs), permanent inability to work, diagnosis of a terminal illness with a life expectancy of less than 12 months, or suffering from a trauma condition (e.g. severe heart attack or some cancers).

The most you can be insured for is $1,500,000, depending on your age and income.

This life insurance product provides greater coverage than Life Express, and you can tailor it to your specific needs with optional covers.

Enjoy the flexibility to increase your cover in the future if you need to, for example, after having kids, without another health/lifestyle questionnaire.

If you already have ahm Health Insurance, this policy can give you an opportunity to save 10% on your health insurance policy.

4. Guardian Life Limited

Photo: linkedin
Photo: linkedin

If you're looking to add cover for your children, you can get insurance in the event of serious medical conditions or passing.

Life Insurance provides a lump-sum payment in the event of your death or terminal illness. With Guardian Insurance, you are able to apply for up to $1,500,000 in coverage.

  • Applicants must be Australian residents aged 18 - 64 years old
  • No medical examination or blood tests required
  • Guaranteed renewable policy for life
  • Choose monthly or fortnightly premium payments
  • 30-day money-back guarantee
  • Ages 18-44: Benefit of up to $1,500,000.
  • Ages 45-54: Benefit of up to $800,000.
  • Ages 55-59: Benefit of up to $500,000.
  • Ages 60-64: Benefit of up to $300,000.

Funeral insurance is designed to cover the cost of a funeral and final expenses in the event of your death. Guardian provides up to $15,000 in coverage. There is guaranteed acceptance for applicants who are between the ages of 18 to 79.

5. TAL

Photo: abc.net.au
Photo: abc.net.au

TAL insurance is one of Australia's biggest insurers with over 4 million members and over 150 years of insurance experience. Learn about the key features you can expect from a TAL life insurance policy, and how it stacks up against other leading brands. With TAL life insurance, you can get a comparatively high funeral benefit of $25,000 and there's no maximum cover limit.

TAL offers 3 core types of life insurance products to its customers: life insurance, critical illness insurance, and total and permanent disability insurance. Its policies fall under TAL Accelerated Protection and can be bought through an adviser or directly through TAL.

TAL also lets you tailor your policy to suit your needs by either choosing a standalone policy, choosing one or more policies and then adding benefits and linking to other plans, or choosing to structure your life insurance through a superannuation plan.

Accelerated Protection life insurance will pay out a lump sum in the event of the policyholder's death or the diagnosis of a terminal illness. The main purpose of this type of cover is to help provide for your family after you've gone, taking care of your family's finances so they can focus on dealing with their loss.

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6. AIA

Photo; lifecovered
Photo; lifecovered

AIA Australia is a global life insurance company that provides comprehensive and flexible life covers to Australians. Its Australian life insurance products, are constantly under review, thereby making sure that the changing needs of the population are always fully met. AIG Life had been providing life cover in Australia for more than 30 years and it will now be continuing this involvement with the Australian people as AIA Australia which is a subsidiary of the American International Assurance Company Limited, a global specialist provider of risk management products designed to protect the financial interests as well as the welfare of the Australian people.

AIA Group Limited, along with its subsidiaries, of which AIA Australia is one, is collectively known as the "AIA Group" or more simply "the Group". The Group is made up of the largest publicly listed pan-Asian life insurance group on the planet. It is spread over 15 markets in the Asia-Pacific area where it is able to track its beginnings back over 90 years, in that time have built up assets totaling US$107.9 billion.

The AIA Group has one of the more extensive networks of any life insurer in the region, its highly diversified presence reduces country and market risks, and as a result, policyholders receive greater financial stability of the developed markets as well as the benefits deriving from the growth potential of the emerging markets.

Read More: Most Weirdest Insurance Policies Around The World

7. Resolution Life

Photo: artemis
Photo: artemis

AMP Life was originally owned by AMP Limited, which was established in 1849 as a mutual company and listed on the Australian Stock Exchange in mid-1998.

In March 2011 AMP merged with AXA. AXA was listed in 1996 as a result of the demutualization of National Mutual and the acquisition of 51% of the company by French company AXA. Following the successful merger between AMP and AXA the combined entity was one of the largest life insurers in Australia. On 12th November 2012, the AXA Elevate range of life insurance products was rebranded AMP Elevate.

On 25th October 2018, AMP announced that it was selling its life insurance business to Resolution Life effective 30th June 2018. Resolution Life is a UK-based specialist manager of in-force legacy insurance businesses. From 31st January 2019 new AMP Elevate policies ceased to be issued outside of AMP platforms. However existing AMP customers are still able to manage and add to their policies.

The initial deal involved AMP retaining a 20% interest in the new entity Resolution Life Australasia. However, in November 2021 Resolution Life announced that it had agreed to acquire AMP's holding for $524 million. The separation from AMP is expected to be completed by mid-2022.

8. Westpac Life Insurance Services Limited

Photo: couriermail
Photo: couriermail

Westpac acquired BT Funds Management in 2002 and BT Financial Group became the wealth management arm of the Westpac Bank. BT and Westpac have been providing banking and other financial services to Australians since 1817. In 2019 the insurance business was separated from the wealth management business and was moved into the Westpac Consumer division.

The BT insurance business provides life insurance protection to more than 1.3 million Australians.

On 9th August 2021 Westpac announced that it would be selling Westpac Life, including the BT life insurance range, to TAL for $900M. The sale is set to complete by the middle of 2022. Until that time BT Life will continue to operate as a separate insurance brand. Existing BT Life clients will not be affected by the sale as the terms and conditions of their policies will continue to be honored by TAL.

9. MetLife Insurance Limited

Photo: businesswire
Photo: businesswire

MetLife Inc. is one of the largest life insurance companies in the world and launched MetLife Australia in 2005. The company aims to help more Australians protect their lifestyle, with insurance products like Life Cover, TPD Cover, Trauma Cover and Income Cover.

MetLife protects customers in 40 countries worldwide including the US, Latin America, Asia, Europe and the Middle East.

Currently, MetLife protects 2.6 million Australians. MetLife is the third largest group insurer in Australia servicing super fund members and employees of company funds. MetLife Australia also supplies products to financial advisers.

MetLife stands for life insurance solutions that provide a genuine benefit and the right level of care that is easy to understand.

10. MLC Limited

Photo: wikipedia
Photo: wikipedia

MLC Limited, the entity that operates the MLC Life Insurance business, is currently owned 20% by the National Australia Bank, one of Australia's largest banks, and 80% by Nippon Life Insurance Company.

Prior to 3rd October 2016, MLC Limited was owned 100% by National Australia Bank. In October 2009 Aviva Australia, previously known as Norwich Union Life, was purchased by the National Australia Bank and rebranded as MLC products.

Following the sale to Nippon Life MLC Limited will retain the MLC brand for its products for at least the next 10 years.

Which insurance company is the best in Australia?

There is no one best life insurance company. Each life insurer is different. A company that’s well suited to a family with dependent children might not be the best option for a single, career-driven, 20-something young professional. Life insurance companies in Australia offer competitive premiums and benefits to suit people at different stages of their lives. However, some companies might provide you with cheaper premiums and better coverage depending on your specific requirements.

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