Top 10 Life Insurance Companies in Australia for 2022
When choosing life cover for yourself and your family, it is important to examine all your options. Investigate whether or not the insurer you’re interested in offers any discounts on their policies and compare premiums, features, and benefits that each insurer offers before making a decision.
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Top 10 life insurance companies by market share
- TAL Life Limited: Market share of 27%
- AIA Australia Limited: Market share of 18.9%
- Zurich: Market share of 14.1%
- MLC Limited: Market share of 10.9%
- Resolution Group (AMP): Market share of 8.4%
- BT/Westpac Financial Group: Market share of 5.6%
- Metlife Insurance: Market share of 1.7%
- Others: Market share of 10.3%
Source: Plan For Life Actuaries & Researchers (August 2021)
Factors to consider when reviewing life insurance companies in Australia
When reviewing a company, it’s generally a good idea to review the type of policies they offer. You might also want to look at the built-in benefits offered by the insurer. Other indicators of a company that offers the best life cover include their claims acceptance rates, financial strength ratings and market share.
Before you buy a policy, you may want to consider some of the following factors:
Pricing
Price is often a deciding factor for many when selecting an insurer. Consider not only what the premium is today but also the potential cost of your premiums for the period you may need the cover for. Compare both stepped and level premiums in your research. Our comparison engine helps you decide what is best for you and your family by including 10-year premium estimates. Compare quotes to discover what your premiums might be in the future.
Life insurance companies price review – Stepped policies
| Company | Male | Female |
| OnePath: Onecare Life Cover | $33.20 | $25.76 |
| TAL: Accelerated Protection | $38.03 | $30.12 |
| Clearview: Clear Choice | $38.33 | $29.25 |
| MetLife: Protect life cover | $35.01 | $29.28 |
| NEOS : Protection Life Cover | $37.75 | $31.34 |
| AIA: Priority Protection | $42.83 | $33.92 |
| MLC: MLC Insurance | $43.12 | $33.92 |
Source: Life Insurance Direct Comparison Engine (January 2022; Premium estimates for $1million of death cover for a 35-year-old non-smoking individual living in NSW)
Compare life insurance policies cost – Level premiums
| Company | Male | Female |
| OnePath: Onecare Life Cover | $105.58 | $76.32 |
| TAL: Accelerated Protection | $100.55 | $75.12 |
| Clearview: Clear Choice | $118.85 | $96.91 |
| MetLife: Protect life cover | $106.90 | $84.88 |
| NEOS : Protection Life Cover | $100.44 | $72.49 |
| AIA: Priority Protection | $106.10 | $82.70 |
| MLC: MLC Insurance | $109.07 | $90.43 |
Source: Life Insurance Direct Comparison Engine (January 2022; Premium estimates for $1million of death cover for a 35-year-old non-smoking individual living in NSW)
Built-in Benefits
Insurers often provide several built-in benefits with their policies. Different insurers have different offerings, so consumers need to review the product disclosure statements (PDS) before purchasing coverage. Some benefits you may want to keep an eye out for include indexation, free child cover, premium freeze options or terminal illness benefits.
Common built in benefits include:
- Terminal illness benefit: If you are diagnosed with terminal illness and you’ve been given a life expectancy of less than 12-24 months, they will pay you 100% of the death benefit in advance, depending on your insurer. Generally, the diagnosis needs to be confirmed by two independent medical specialists.
- Funeral advancement benefit: Generally, to receive an advance payout from your life insurance policy, you must provide the insurance company with a valid death certificate and full claim forms. This benefit typically ranges from $10,000 to 10% of your sum insured. Typically, funeral cover can be used to help cover your final expenses.
- Future insurability benefit: This benefit typically allows you to increase your level of cover, without supplying additional medical information. You may be able to do this when a significant life event occurs, such as getting married or divorced, having a baby or moving home.
- Financial advice benefit: If you need to seek advice from a financial advisor, this benefit generally reimburses the cost up to a specific range which may vary between $2,000 – $5,000 depending on who you’re insured with.
- Premium freeze option: Generally, this built-in benefit comes with your policy and allows you to freeze your premiums. So, instead of your stepped premiums increasing each year, your benefit amount will decrease instead.
- Indexation: Typically, this benefit helps your policy to keep up with inflation. If your policy features the indexation benefit, your level of cover will usually increase by a set percentage between 3% and 5% or the CPI, depending on which is greater.
- Interim cover: Generally, complimentary interim cover provides a lump sum payment should you pass away as a result of an accident during your policy assessment. The benefit will generally be the lesser of $1,000,000 or your sum insured at the time of application.
Exclusions
Your life insurance policy is intended to provide financial protection for you and your family if something happens. But, there may be some exclusions on your policy which you should be aware of. For example, insurers generally don’t pay out any benefits for suicide in the first 13 months of you starting your policy. Typically, it’s a good idea to check your Product Disclosure Statement to see the full exclusions that apply to your policy and when.
Applying for a policy (Underwriting of your application)
Applying for a new life insurance policy and the subsequent underwriting of your application is often a critical step in getting life insurance. The aim for insurers involves determining if an applicant’s application represents risks that are acceptable to the company and then establishing what premium or alternative offer they can provide the customer. When applying for your policy it is essential for you to fully comply with your Duty to take Reasonable Care Not to Make a Misrepresentation, as this can have a major impact on your potential claim acceptance. Therefore answer all questions fully and honestly when applying for your policy.
Claims accepted rates
It’s essential to know how a company deals with claims, as this can decide whether or not you choose them for your insurance needs. A good record of accepting these on time will leave customers feeling confident about their service and happy that they got what was promised.
The claims accepted rates for some of the leadings insurers in Australia are as follows:
- Onepath: 98.1%
- Zurich: 97.7%
- TAL: 97.5%
- AIA: 97%
- Westpac: 96.5%
- MLC: 96%
- BT: number of finalised claims is too small to provide a reliable result
- MetLife: number of finalised claims is too small to provide a reliable result.
- NobleOak (NEOS, PPS Mutral and NobleOak): number of finalised claims is too small to provide a reliable result.
- Other: N/A
Source: Moneysmart.gov.au (Claims information for death cover purchased through a financial adviser for the period between 01/07/2020 – 30/06/2021)
Market share
This refers to the company’s total inforce 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 indicate its competitiveness or strategic positioning within the market.
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.
Financial strength ratings for some of the leading life insurance companies in Australia for 2022
- AIA Australia: A+
- BT: A+
- Metlife: A+
- MLC Life: A+
- Nobleoak: Not rated
- OnePath: A+
- TAL (Dai Ichi Group): A+
- Zurich: A+
- Other: N/A
Top companies products and common 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. Additionally, you might also want to look at the built-in benefits that your insurer offers with their policies.
TAL Life Limited – Accelerated Protection
TAL is one of Australia’s largest life insurance companies and a subsidiary to Dai-ichi group. In 2020, this insurer paid over $2.7 billion in claims to their customers. TAL offers Accelerated Protection Life Insurance, Critical Illness coverage and Income Protection plans.
Common Built-in benefits
- 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.
- Financial planning benefit: Reimbursing you up to $5,000 for financial planning advice.
AIA Australia – Priority Protection
Established in 1972 and 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. Currently, AIA offers protection to over 3.8 million Australians and has paid out more than $2.2billion in claims in 2020. Get AIA Priority Protection Life Cover, TPD insurance, Crisis Recovery and Income Protection.
Common Built-in benefits
- Health and Wellness Program: Premium discounts, shopping vouchers and up to 50% back on Virgin Australia flights with AIA Vitality wellness program.
- Final expenses benefit: 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 benefit: Receive a financial planning reimbursement of up to $3,000.
Zurich – Wealth Protection
Zurich is a trusted name in the life insurance industry, with over 135 years worth of experience to back it up. They offer death cover, total and permanent disablement coverage or trauma cover. They cater to various requirements.
Common Built-in benefits
- Health and Wellness Program: Access over 4,500 lifestyle entertainment rewards and get discounts of up to 7.5% on your premiums with Zurich LiveWell digital wellness program.
- Funeral expenses benefit: Advance payment of $15,000 to cover funeral expenses.
- Accidental injury benefit: An advance payment of part or all your death benefit should you suffer a specified accidental injury.
- Accidental injury benefit: An advance payment of part or all your death benefit should you suffer a specified accidental injury.
- Interim cover: Interim cover for accidental injury or accidental death while you’re waiting for your application to be assessed.
MLC – MLC Insurance
Through its 130 years in the Australian insurance industry, MLC has developed a wide range of packages to suit many different budgets and requirements. The life insurer offers you a selection of products to protect you and your family. Their product range includes Life Cover, TPD Insurance, Critical Illness Cover and Income Protection.
Common Built-in benefits
- Accidental injury benefit: 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.
- Advance Death Benefit: 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
BT – Protection plan
BT first commenced operations in 1969 and is one of the many brands of the BT Financial Group Australia, the wealth management division of the Westpac Group. The types of cover available from BT include Term Life Insurance, Total and Permanent Disablement (TPD), Living Insurance and Income Protection. By the end of September 2020, BT had paid its customers almost $418 million in claims.
Common Built-in benefits
- Loyalty benefit: Generally, when you hold your life insurance policy for more than 3 years, your sum insured will increase by 5% without your premiums rising.
- Counselling benefit: After a death benefit has been paid, BT typically reimburses your loved ones up to $5,000 or up to 10 counselling sessions.
- Financial Planning Benefit: A Financial Planning Benefit up to $5,000, if reimbursed after a lump sum death benefit has been paid.
MetLife – Protect life cover
MetLife Australia is owned by MetLife Incorporated, the Metropolitan Life Insurance Company (MLIC) holding company and its associates. They paid over $500 million in claims to their customers in 2019. 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
- 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.
- Terminal illness Benefit: MetLife might pay up to $1,500 for grief counseling if you’re diagnosed with a terminal illness.
- Benefit Indexation: The insurer may increase your benefit each year by the CPI without the need for any additional medical disclosures. This helps to keep your level of cover in line with indexation.
Life insurance companies in Australia 2022
According to APRA, there are about 27 registered life companies in Australia. You can review the full list of companies registered under section 21 of The Life Insurance Act 1995 in the list below:
- AIA Australia Limited
- Allianz Australia Life Insurance Limited
- AMP Life Limited
- Asteron Life & Superannuation Limited
- Challenger Life Company Limited
- ClearView Life Assurance Limited
- Combined Life Insurance Company of Australia Ltd
- General Reinsurance Life Australia Ltd
- Hallmark Life Insurance Company Ltd.
- Hannover Life Re of Australasia Ltd
- H C F Life Insurance Company Pty Limited
- Integrity Life Australia Limited
- Macquarie Life Limited
- MetLife Insurance Limited
- MLC Limited
- Munich Reinsurance Company of Australasia Limited
- OnePath Life Limited
- Pacific Life Re (Australia) Pty Limited
- QInsure Limited
- RGA Reinsurance Company of Australia Limited
- RLNM Limited
- SCOR Global Life Australia Pty Limited
- St Andrew’s Life Insurance Pty Ltd
- Swiss Re Life & Health Australia Limited
- TAL Life Limited
- Westpac Life Insurance Services Limited
- Zurich Australia Limited
Source: Australian Prudential Regulation Authority (APRA)
Frequently asked questions and answers
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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.
In your experience, which insurers will pay out the terminal illness benefit component for terminal heart failure, as diagnosed by end stage heart failure surgeon and end stage heart failure medical Dr (Acting Clinical Director)?
MLC, AIA, TAL, MetLife???
AIA refused on at least one occasion.
Hi Lively,
Thank you so much for the question. Generally, each insurer has its own definitions for terminal illness benefits. Insurers typically pay out for terminal illness benefits if an appropriate specialist medical practitioner is of the reasonable opinion that your diagnosis will result in you passing away in the next 12 to 24 months.
However, to find out whether an insurer might pay out on your claim, it’s best to consult the insurer directly, and ask for a copy of the relevant PDS and policy documents to understand how a terminal illness is defined in the policy you currently have.