Top 10 Life Insurance Companies in Australia for 2020
To find the most affordable life insurance policy that meets your and 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 insurance companies by market share, price and customer satisfaction
Published January 29, 2020
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- Our criteria for ranking
- Top 10 Life Insurance Companies in Australia
- Company products and benefits
- Standard & Poors rating for the top 10 life insurance companies
- Underwriting process and claims paid
- Life Insurance complaints and customer reviews
- Life insurance company prices
- List of life insurance companies in Australia
After many hours of research and analysing life insurance companies in Australia, 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.
Our criteria for ranking
- Market share: Refers to the company’s total enforce premiums, over a specified period, in relation to the industry in which it operates. The bigger the market share, the bigger a company’s profit potential, which can be an indicator of its competitiveness or strategic positioning within the market.
- Products offered: Review which life insurance products a company provides.
- Financial strength: An estimate of the insurer’s ability to pay out customer claims.
- Customer reviews: How satisfied customers are with the company.
- The underwriting process and claims paid: An insurer’s policy regarding measuring your risk to the company and the insurer’s likelihood, based on past statistics, of paying your claim.
- Pricing: The average monthly cost of a policy compared to its competitors.
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: 17.8% market share
- AIA Australia Limited: 15.6% market share
- Zurich: 14.5% market share
- MLC Limited: 11.6% market share
- AMP Limited: 10.5% market share
- BT Financial Group: 7.6% market share
- CommInsure: 6.6% market share
- MetLife Insurance Limited: 5% market share
- Others: 3.2% market share
- ClearView Life: 1.6% market share
Australian life insurance companies by market share
Source: Market share data from Plan for Life Actuaries & Researchers (21 January 2020 media release).
Company products and benefits
When reviewing a company, be sure to have a look at the type of life insurance 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 |
| 1. TAL Life Limited | Not Rated |
| 2. AIA Australia Limited | A+ |
| 3. Zurich | A+ |
| 4. MLC Limited | A+ |
| 5. AMP Limited | A |
| 6. BT | A+ |
| 7. CommInsure | A+ |
| 8. MetLife Insurance Limited | A+ |
| 9.Others | Not Rated |
| 10. ClearView Life | Not Rated |
Source: Standard & Poors Financial Strength (as at January 2020).
Underwriting process and claims paid
Life insurance 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, is 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 insurance 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 | 97.9% | 1.0 | 4.3 | 15.1% |
| 2. AIA Australia Limited | 97.6% | 2.0 | 5.0 | 16.4% |
| 3. Zurich | 95.5% | 1.4 | 5.8 | 13.3% |
| 4. MLC Limited | 98.5% | 2.3 | 4.5 | 18.9% |
| 5. AMP Limited | 97.6% | 3.9 | 8.8 | 18.7% |
| 6. Westpac | 96.2% | 2.0 | 5.7 | 14.9% |
| 7. CommInsure | 87.1% | 1.7 | 11.0 | 14.2% |
| 8. MetLife Insurance Limited | Number of claims too small for reliable results | Number of claims too small for reliable results | Number of claims too small for reliable results | 24.4% |
| 9.Others | N/A | N/A | N/A | N/A |
| 10. ClearView Life | Number of claims too small for reliable results | Number of claims too small for reliable results | Number of claims too small for reliable results | 15.2% |
Source: APRA 13 November 2019
Take note: The above claims statistics are based on Death cover purchased through a financial adviser.
Life Insurance complaints and customer reviews
When deciding which Australian term life insurance company will best meet your requirements, it’s usually a good idea to check how satisfied current and previous customers are with their level of service.
Customer satisfaction rating
Source: Roy Morgan Single Source (July 2018 to July 2019).
Life insurance company prices
Another important criterion to look at when comparing life insurers is their premium pricing. There’s no point in applying for a policy that meets all your requirements but doesn’t suit your budget.
Compare premiums pricing for the top 10 life insurance companies
| Company | Monthly premium |
| TAL Life Limited | $29.59 |
| AIA Australia Limited | $33.62 |
| Zurich | $34.83 |
| MLC Limited | $34.24 |
| AMP Limited | Not available |
| BT | $31.25 |
| CommInsure | $36.77 |
| MetLife Insurance Limited | Not available |
| Others | Not available |
| ClearView Life | $28.80 |
| NEOS | $30.61 |
Source: Lifeinsurancedirect Online Comparison Tool
Take note: The Premium data is for a 35-year-old female, non-smoker, based in NSW for $1 million life insurance (sourced on 22 January 2020).
List of life insurance companies in Australia
According to APRA, there are about 28 registered life companies in Australia. You can review the full list of companies registered under section 21 of The Life Insurance Act 1995 below:
- AIA Australia Limited
- Allianz Australia Life Insurance Limited
- AMP Life Limited
- Asteron Life and Superannuation Limited
- Challenger Life Company Limited
- ClearView Life Assurance Limited
- Colonial Life Insurance Company of Australia Ltd
- Combined Life Insurance Company of Australia Ltd
- General Reinsurance Life Australia Ltd
- Hallmark Life Insurance Company Ltd
- Hannover Life Re of Australasia Ltd
- HCF Life Insurance Company Pty Limited
- Integrity Life Australia Limited
- Macquarie Life Limited
- MetLife Insurance Limited
- MLC Limited
- Munich Reinsurance Company of Australia Limited
- OnePath Life Limited
- Pacific Life Re (Australia) Pty Limited
- QInsure Limited
- RGA Reinsurance Company of Australia Limited
- SCOR Global Life Australia Pty Limited
- St Andrew’s Life Insurance Pty Ltd
- Swiss Re Life & Health Australia Limited
- Tal Life Limited
- The National Mutual Life Association of Australasia Limited
- Westpac Life Insurance Services Limited
- Zurich Australia Limited
Source: apra.gov.au (15 October 2019).
Choosing the best life insurance company
There is no one-size-fits-all best life insurance company. Every life insurance company claims to deliver the best value at the most affordable price, but ultimately you’re in control and should choose a policy best suited to you and your family’s requirements.
Before choosing a life insurance company, it’s important that you:
- Have a clear understanding of your personal requirements and financial circumstances.
- Determine the type and level of cover you need. Different insurers will suit different people. Carefully review your current circumstances and stage of life before deciding.
- Compare life insurance policies and review quotes, focusing on price differences, as well as their features, benefits, and terms and conditions.
- Speak to a specialist. A life insurance specialist can guide you toward the right information quickly and help you make an informed decision you’ll feel confident with.
Frequently asked questions and answers
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Which life insurer offers the lowest rates?
The rate you’ll pay for your policy depends on several factors, including your choice of policy, cover amount, age, where you live and premium type. You might want to shop around and compare quotes to determine which company offers you the lowest rates. -
Which life insurance company is the best in Australia?
The best life insurance company for you depends on your unique requirements, for example, your current lifestyle, budget, family responsibilities and health. Ask an insurance specialist to help you conduct a needs analysis to assist you in determining which insurer will meet your requirements. -
Who regulates life insurance companies?
Under the Insurance Act 1973, the Australian Prudential Authority (APRA) regulates life insurance companies. The Australian Securities and Investments Commission (ASIC) is responsible for licensing financial services providers, including companies that offer life insurance products. ASIC also regulates consumer protection in the financial services industry.
APRA determines how much capital a life insurance company must hold in reserve to pay claims. Under the Insurance Contracts Act 1983, life insurers must Act in good faith and not vary insurance contracts to the detriment of the policyholder, as well as provide documents detailing the insured person(s) chosen life insurance product.
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How does life insurance companies make money?
Life insurance companies generally make money from underwriting income where the premiums from customers are higher than the expected claims/claims paid. Insurers’ do this by better managing their risk exposure. Secondly, they make money by investing customer premiums into assets that they believe will provide a positive return. -
Can you switch life insurance companies?
Yes, generally you can switch from one insurer to another. With empowered consumers on the rise, there has been an increase in Australians choosing to change life insurers to find better value. However, to make sure you are covered between policies, do not cancel one policy before your new policy commences. -
What the difference between whole vs term life insurance policies?
A whole life insurance policy has both an insurance and investment component, thus providing customers with a surrender or cash value. Whole life policies are no longer available in Australia. Term life insurance policies expire at a specific term, as set out by your insurer. Although it does not offer a cash-back or investment option, it is generally cheaper than whole life and the most popular personal insurance policy type available in Australia.
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Please email me a Death cover insurance only quote for the sum of $ 1M Non smoker , Occupation Finance Broker , Income $ 150K
DOB : 23/05/1949
Hi Derrick
I need to apologise for not getting back to you earlier as I missed a few questions & comments over the Christmas / holiday period which I am attending to now.
I totally understand if you are no longer looking around for a policy as it has been some time for me to respond (please note this is not the normal, we aim to respond within a very short time frame). However if you are you can find the answer here in our exclusive research where we compare 24 life insurance policies online.
Should you like the resource and wish to proceed with a personalised quote please complete your details here, or contact us on 1300135205.
As I have not responded back to you in a timely fashion as a goodwill gesture I am happy to give you a $100 credit towards your insurance should you elect to use us to facilitate the purchase of your life insurance requirements.
Best Regards
Russell Cain
I would like to enquire on how I can get income protection. I have had 3 back surgeries on a herniated disc of which I would need to disclose. Can you please advise which insurance company would cover me to investigate further.
Hi Allana
I am not sure what you mean by investigate further? Please note generally insurers will not offer cover if you still have an unresolved / pending investigations that are in progress.
Based on the limited information you have provided it is difficult to provide you with an accurate response however, generally people with multiple surgeries on their back would be looking at a back exclusion on a new income protection policy. However to get an accurate understanding from an insurer about if they would offer you cover we would need to know your occupation, when surgeries were completed, any restrictions to work/daily activities, ongoing/future treatment and any further planned investigations.
If you would like any further assistance I recommend you call our office to discuss further.
I want to get Life Insurance( to the amount of say $1,000,000) and income insurance, I am a non-smoker, 44, diabetic(non-insulin dependant), and also had a slight Heart Attack 8 years ago I don’t have any other physical conditions, which life insurance company would suit me
Hi William
Thank you for your question, to give you a quick understanding on what $1,000,000 worth of life insurance is worth (before taking into account any medical history) can be found here at our exclusive white paper research where we provide instant quotes from 24 life insurance policies online from some of the major insurers.
However to take into consideration you medical history we will need some further information from you, firstly for diabetics we will need the following:
• Your current age
• Type of diabetes
• Age of onset
• Current HbA1c reading
• Any complications such as eye problems or numbness / tingling in feet or legs
• Family history
For the Heart attack we would need to know the following:
• Age at time of heart attack
• Number of episodes
• Since the event have you had any symptoms of chest pain or painful / difficulty breathing? If so when?
• When was your last cardiac assessment / follow up?
• Treatment (e.g. stent, medication)
• BMI
• Do you have have any other medical complications such as diabetes, high cholesterol or high blood pressure?
As we specialise in finding customers with complex / detailed medical history cover, we would encourage you to obtain as much of the above as possible & to either call us on 1300135205 or request a quote and we will contact you to obtain the information required to complete a pre-assessment for you which would then give you an indication of which company my meet your requirements .
I hope this helps,
Hi, I am considering taking life, TPD insurance and trauma insurance from either AIA, AMP or Zurich.
I am a 36-year-old male with one infant child. I want to know what the main policy differences are between these three companies. What are the advantage and disadvantage? Can you give me more details about this?
Thanks
Hello Keith,
Wonderful to see you considering the pros and cons of these insurance companies; finding the right policy can be a challenge.
To help you with your journey you might want to start by comparing life insurance quotes online. With our easy-to-use quote comparison tool, you can evaluate policies side by side and review what each one has to offer you. Simply fill in the quote form above and you can start comparing the differences and advantages of each policy type.
If you prefer to talk to someone about your specific insurance needs, please give us a call on 1300 135 205 and a consultant will assist you immediately.
I currently have life cover for +/- $240k and pay +/-$975 pm. I had a coronary bypass surgery in 1985 and came to Australia in 2007 and took out the insurance at the end of 2007. I have just had a complete check-up with a cardiac surgeon and all is good. My next appointment with him is in 12 months’ time.
I feel I am paying far too much and am being penalised for my past medical history. I am now 70 years old and still work.
Is there something better for me out there?
Hello Ces,
Thank you for your question.
We understand your frustration and would like to assist you in your search for a more affordable life insurance policy.
Let me start by saying how important it is that you do not cancel your current policy before a new policy has been underwritten and issued.
It is worth you shopping around for the policy that best suits your requirements and budget. While your age still makes you eligible to receiving life cover, requesting a quote for a fully underwritten policy should ensure your complete medical history is taken into consideration.
During the underwriting process, the insurer will generally write to your doctors, including your cardiologist, to get the complete picture of your health and how your heart is doing.
We can help you compare policies from some of Australia’s top life insurance companies so you can make an informed decision. Simply fill in the quote form above or if you prefer you can contact us directly on 1300 135 205 for immediate assistance.
I have just received notification from MLC Limited that my new monthly premium will be $226.38 as of 22 May 2018. Death benefit $125,000. As I retired at the end of 2017 and now receive full pension of $827 per fortnight I can no longer afford this amount.
Have you any suggestions? The policy number is L030**** and it’s a MLC Five Year Life Policy. I am in very good health and have not had any health setbacks to date.
Hi Denise,
Thank you for reaching out.
Life insurance for pensioners is an important consideration. As you stated, the increasing cost makes it difficult to maintain and then there’s the fact that you might not need as much coverage, especially when you no longer have financial dependents.
Depending on your specific circumstances, you might want to consider reducing your cover amount to keep your premiums affordable or shop around and compare life insurance policies to determine if you can find better cover elsewhere. You can call us on 1300 135 205 or fill in the quote form above.
Alternatively, you might want to consider whether funeral insurance is the better option at this stage of your life.
Where is the home office for MetLife Insurance in Australia and what is their phone number from the United States? I need this information very quickly if you can help me.
Hi Thomas. When calling from the United States, please call 1-800-METLIFE.