To find the most affordable insurance policy that meets your 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.
This decision could help to ensure your loved ones’ financial needs will be supported should something happen to you.
We provide you with a list and comparison of Australia’s top life insurance companies. We hope this information helps you make an informed decision on which insurer will give you the best value for money.
Top 10 Life Insurance Companies in Australia
Market share refers to the portion of the overall life insurance industry maintained within any single company and is generally built on their organic growth, mergers and acquisitions and strategic partnerships, including with super funds.
- TAL Life Limited: 27.7% market share
- AIA Australia Limited: 18.8% market share
- Zurich: 14.4% market share
- MLC Limited: 11.0% market share
- Resolution Group: 9.5% market share
- BT Financial Group: 5.8% market share
- MetLife Insurance Limited: 4.9% market share
- Others: 6.4% market share
- ClearView Life: 1.7% market share
Also Read: Get Free Income Protection Insurance
Company products and benefits
When reviewing a company, be sure to have a look at the type of policies they offer.
Generally, you’d want a company that provides a wide range of policies, including the products you’re specifically interested in.
You might also want to have a look at a company’s free built-in benefits, as well as their optional riders (for example, accidental death and critical illness cover). Also, take into account the extra benefits which you can add at an additional cost to further increase the value of your protection, for example, premium waiver and accommodation benefit.
TAL Life Limited
Previously known as TOWER Australia, TAL was established in 1869 and is one of the largest bank-owned life insurance companies in Australia and a subsidiary of the Dai-ichi group. TAL offers Accelerated Protection Life insurance, Critical Illness insurance, TPD insurance and Income Protection.
Common Built-in Benefits for life insurance
- Health and Wellness Program: TAL Health Sense rewards program can help you save up to 15% on your premiums.
- Free Interim cover benefit. Should you pass away or become sick or injured before your application is accepted, TAL will pay you a specified lump sum benefit as per the terms and conditions.
- Free Child Critical Illness benefit: Pays up to $10,000 if your child, aged 2 to 15, is diagnosed with a specified medical condition, terminal illness, or passes away.
- Funeral advancement benefit of up to $25,000.
- Financial planning benefit: Reimbursing you up to $5,000 for financial planning advice.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
AIA Australia
Established in 1972, AIA Australia remains focused on helping customer live healthier lives with their top-rated AIA Vitality program. Owned by the Hong Kong-based AIA Group Limited (AIG), the life insurance company continually strives to improve its customer and claims services with the latest technological advances.
Common Built-in benefits for life insurance
- Health and Wellness Program: Premium discounts, shopping vouchers and up to 50% back on Virgin Australia flights with AIA Vitality wellness program.
- 10% advancement off sum insured, up to $25,000, to deal with your final expenses.
- Complimentary Family Final Expenses: Pays 10% of sum insured, up to $20,000, if your child (2 to 17 years old) passes away or gets diagnosed with a terminal illness.
- Financial planning reimbursement up to $3,000.
- Free interim accidental death cover while your policy is being assessed. Up to 90 days from date of the signed application.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
Zurich
Zurich is a multinational insurance company based in Switzerland that’s been providing insurance for over 135 years. Zurich Wealth Protection includes products such as Death Cover, Total and Permanent Disablement Cover, Trauma Cover and Income Protection Insurance.
Common Built-in benefits for life insurance
- Health and Wellness Program: Access over 4,500 lifestyle entertainment rewards and get premium discounts with Zurich LiveWell digital wellness program.
- Advance payment of $15,00 to cover funeral expenses.
- Accidental injury benefit: An advance payment of part or all your death benefit should you suffer a specified accidental injury.
- Potentially receive reimbursement for some travel and accommodation expenses for immediate family members that have to travel more than 100km to be with the life insured.
- Free interim cover for accidental injury or accidental death while you’re waiting for your application to be assessed.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
MLC
MLC has been providing insurance services for over 125 years, with the majority of the company owned by Nippon Life. The life insurer offers you a selection of products to protect you and your family from financial loss, including Life Cover, TPD Insurance, Critical Illness Cover and Income Protection.
Common Built-in benefits for life insurance
- Health and Wellness Program: You can benefit from their MLC On Track wellness program when increasing your physical activity and maintaining a healthy lifestyle.
- Receive an accidental injury benefit if due to an accident, that occurs within 6 months of the accident, for example, losing eyesight in both eyes, and it is total and permanent.
- An Advance Death Benefit of $20,000 will generally be paid from your life cover lump sum to help your loved ones pay for your funeral.
- Financial planning benefit: If the lump sum benefit paid is $100,000 or more, MLC reimburses you for part of the costs charged by a qualified financial adviser for financial planning services.
- Best Doctors Service – Giving access to some of the leading medical practitioners in the world
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
AMP
As of 31 January 2019, AMP life insurance no longer accepts new customers as it’s been sold to the UK business Resolution Life. Current AMP customers will not be adversely affected, management of AMP policies will merely be transferred to Resolution Life.
BT
The BT (Bankers Trust) insurance division is owned by the Westpac Group, the oldest banking corporation in Australia. The types of cover available from BT includes Term Life Insurance, Total and Permanent Disablement (TPD), Living Insurance and Income Protection.
Common Built-in benefits for life insurance
- Health and Wellness Program: Reduce your life insurance premiums up to 10% with BT My Wellbeing Rewards.
- Loyalty benefit: Generally, when you hold your life insurance policy for more than 3 consecutive years, your sum insured will increase by 5% without your premiums rising.
- Advances 10% of your death benefit, up to $25,000, for payment of your final expenses.
- A Financial Planning Benefit up to $5,000, if reimbursed after a lump sum death benefit has been paid.
- Counselling benefit: BT reimburses your loved ones up to $5,000, up to 10 counselling sessions, following the payment of a death benefit.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
CommInsure
CommInsure is the insurance arm of the Commonwealth Bank Group but is being sold to AIA Australia, subject to regulatory approval. The deal is expected to be concluded by the end of 2020 fiscal. Existing CommInsure policies will remain unaffected. CommInsure Protection products include Life Care, TPD Cover, Trauma Cover and Income Protection.
Common Built-in benefits for life insurance
- Loyalty Bonus benefit: If you’ve held your cover for 5 consecutive years, your Life Care benefit payment automatically increases by 5%.
- Should you pass away, your beneficiaries will receive an Advance Payment benefit up to $30,00 for funeral expenses.
- Severe Hardship Booster: Your lump-sum death benefit could double if you’re likely to die within 24 months from a specific disease listed in the insurer’s PDS.
- Beneficiaries might receive a Life Care Financial Planning benefit up to $5,000 to help cover the cost of financial advice.
- CommInsure helps pay for the accommodation costs should an immediate family member, that lives a long way from you, assist you if you are terminally ill and confined to a bed.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
MetLife
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.
Common Built-in benefits for life insurance
- Immediate Expenses benefit: MetLife helps your beneficiaries cover the cost of your funeral by advancing $10,000 from your death benefit upon receipt of a valid death certificate.
- Might receive a payment of up to $5,000 as an Early Intervention Benefit, when an eligible life insured person experiences mental health problems.
- If you’re diagnosed with a terminal illness, MetLife might pay up to $1,500 for grief counselling.
- Financial Advice Benefit: Pays up to $2,000 to reimburse your beneficiaries for the use of a Financial Adviser to help them plan how to use the lump sum benefit.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
ClearView
Previously known as NRMA, Clearview has been offering life insurance to Australians since 1976. The company provides a range of insurance cover to help Australians with their wealth protection needs, such as Life Cover, TPD Cover, Trauma Cover and Income Protection.
Common Built-in benefits for life insurance
- Health and Wellness Program: Save up to 10% on your premiums when you proactively manage and maintain your health with ClearView’s Health Maintenance Rewards.
- Once a valid death certificate has been received, the company advances up to $25,000 from your death benefit to help your beneficiaries cover your funeral costs.
- Receive a reimbursement of up to $1,000 for grief counselling for yourself and an immediate family member should you be diagnosed with a terminal illness.
- Life Cover Conversion benefit: At a pre-determined time, you might be able to cash in some or all of your life cover if you suffer a specific medical condition as listed in your PDS.
- Financial Advice benefit: Beneficiaries can receive a reimbursement of up to $3,000 when engaging a financial adviser to prepare a financial plan for them, after your death.
Take note: Some of the above benefits might not be available when purchasing insurance through your super fund.
Standard & Poors rating for the top 10 life insurance companies
An insurer’s financial strength rating indicates how well and timely a company meets its ongoing financial obligations. Meaning, how likely the company is to pay claims when you suffer a financial loss as per their product definitions. You generally want a company to have a Standard & Poor rating of AAA (extremely strong), AA+ (very strong) or at least AA (very strong).
Best life insurers by financial rating
| Company | Standard and Poors ratings |
| TAL Life Limited | Not Rated |
| AIA Australia Limited | A+ |
| Zurich | A+ |
| MLC Limited | A+ |
| AMP Limited | A |
| BT | A+ |
| CommInsure | A+ |
| MetLife Insurance Limited | A+ |
| Others | Not Rated |
| ClearView Life | Not Rated |
Source: Standard & Poors Financial Strength (9 December 2020)
Underwriting process and claims paid
Life cover underwriting is the process of determining if the information you provided during application time represents an acceptable risk to the insurer. Retail policies purchased through a Financial Adviser, or broker, like Life Insurance Direct, are typically fully underwritten at the application stage, generally providing you with more certainty that a future claim will be paid. Be sure to enquire which type of underwriting process a company adheres to.
Another essential factor to consider is how a company deals with claims; for example, do they have a good record of accepting claims on time?
Australian life cover companies claim statistics
| Company | Claims accepted rate | Average months it took to decide on claim status | Disputes per 100,000 people insured | Policy cancellation rate |
| 1. TAL Life Limited | 96.6% | 1.1 | 4.9 | 16.7% |
| 2. AIA Australia Limited | 93.3% | 2.2 | 4.1 | 16.4% |
| 3. Zurich | 97.7% | 1.4 | 8.1 | 13.0% |
| 4. MLC Limited | 95.4% | 2.3 | 2.5 | 17.1% |
| 5. AMP Limited | 95.5% | 1.2 | 10.6 | 27.1% |
| 6. BT | N/A | N/A | N/A | N/A |
| 7. CommInsure | 95.5% | 1.5 | 7.0 | 10.6% |
| 8. MetLife Insurance Limited | N/A | N/A | N/A | 15.7% |
| 9. Others | N/A | N/A | N/A | N/A |
| 10. ClearView Life | N/A | N/A | N/A | 14.2% |
Source: Moneysmart.gov.au (23 December 2020) – Based on death cover purchased through a financial adviser. Date range 1 July 2019 to 30 June 2020.