Best life insurance Companies in Australia

Life Insurance is a great property for future security. It is also a great shelter that protects you by providing financial support when you are injured in an accident or provides cash benefits in the event of your death to beneficiaries who are your nominee. But many people do not feel it’s importance. Life insurance provides a lump sum of money to their policyholders or their nominee which is tax-free. You will get financial benefit from life insurance for almost every accidental physical damages if you pay your ongoing fee. Life insurance provides a large amount of money you or your family if you die or become terminally ill.

In Australia, many insurance companies are working with life insurance. Here the best life insurance in Australia and their features will be discussed.

Top Life insurance companies in Australia:

Some life insurance companies in Australia are given below:

  • Allianz Australia Life Insurance Limited
  • AMP Life Limited
  • AIA Australia Limited
  • Asteron Life & Superannuation Limited
  • Colonial Mutual Life Assurance Society Limited
  • Challenger Life Company Limited
  • Combined Life Insurance Company of Australia Ltd  
  • ClearView Life Assurance Limited 
  • General Reinsurance Life Australia Ltd
  • Hannover Life Re of Australasia Ltd
  • H C F Life Insurance Company Pty Limited
  • Hallmark Life Insurance Company Ltd.
  • Integrity Life Australia Limited 
  • MetLife Insurance Limited
  • Macquarie Life Limited
  • Munich Reinsurance Company of Australasia Limited
  • MLC Limited
  • OnePath Life Limited
  • Pacific Life Re (Australia) Pty Limited
  • QInsure Limited
  • RGA Reinsurance Company of Australia Limited
  • St Andrew’s Life Insurance Pty Ltd
  • SCOR Global Life Australia Pty Limited
  • Swiss Re Life & Health Australia Limited
  • St. George Life Limited
  • The National Mutual Life Association of Australasia Limited
  • TAL Life Limited
  • Westpac Life Insurance Services Limited
  • Zurich Australia Limited  

Advantages of life insurance in Australia 

  • Life insurance benefit payments are totally tax-free.
  • Life insurance provides a lump-sum benefit to help the victim family if the insured person dies.
  • Some companies have multi-policy discounts for family members. If someone takes cover with his spouse he will get this offer.
  • All policies will provide a benefit payment to cover as soon as after death
  • Most insurance policies will let you increase or decrease the benefit at later stages.
  • Some policies can be funded through your superannuatio
  • Some policies also provide  complimentary child cover in the event your child passes away
  • You can purchase insurance policies directly from the insurance or with the help of an adviser

Top 11 general Life insurance companies in australia

There is no specific one ‘best life insurance company in Australia’. Every life insurance company is different in terms of its facilities, term & condition, premium and cover. A company might be suited for a family package but another may be suited for single. Life insurance companies in Australia offer competitive premiums and benefits for people at different stages of their lives. Some life insurance companies in Australia who provide you with cheaper premiums and better coverage depending on your specific requirements. These companies may be said best life insurance in Australia.

A list of life insurance companies in Australia that can be said best life insurance in Australia are given below.

Sl no Name of the Life insurance Company Market Share
01 TAL Life Limited 17.8%
02 AIA Australia Limited: 15.6
03 MLC Limited 11.7
04 AMP Limited 11.0
05 OnePath Limited 10.0
07 Comminsure 7.9
08 BT Financial Group 7.8
09 Suncorp Life 5
10 MetLife Insurance Limited 4.5
11 Zurich Australia Limited 4.2
Best life insurance Australia market share chart
Best life insurance Australia market share chart

Types of Life Insurance in Australia 

The features of all life insurance policies are not the same, each policy has different facilities. The cost of the policy, duration of the policy and provisions depends on the type of coverage. Mainly there are two types of life insurance,  that are term and permanent.

1. Term life insurance

The premium of term life insurance depends on the period of time, known as the term. When the term is over, the policy expires. Usually, Term life insurance is cost-effective and its duration depends on your requirement or your willingness.

2. Permanent life insurance

There is no expiration date of permanent life insurance. It lasts for as long as the policyholder pays his premiums. Permanent policies also have a cash value component, you can borrow against it. The cash value portion, along with fees, raises the price of permanent policies compared to term. Permanent life insurance policies consist of whole, variable, universal and variable universal life.

Factors of life insurance in Australia for determining the cost

1. Health:

 If there is a possibility you are to die during the policy period the policy will be more expensive. That is why unhealthy people, people of different severe health disorder history like diabetes or cancer or engage in risky work are charged more.

2. Age:

Same as older people will pay more than younger the younger. The cost Life insurance in Australia increases at a rate of 8-10% a year.

3. Coverage amount:

If you want to increase the death benefit amount, you will have to pay more for the policy according to your benefit amount.

4. Term length:

If you want to activate your policy for a long time will have to pay more.

5. Riders:

If you add extra certain parameters and benefit with your policy cover you will have to pay more expensive premium.

6. Gender:

Since women are at higher health risks, they have to pay higher premiums than males.

7. Your location

Your life insurance premiums may be affected by the state you live in. If you live in an area that is statistically proven to be dangerous and reflects a higher mortality rate, you will have to pay higher premiums.

8. Occupation:

If you involve with high-risk activities, you will have to pay a higher premium.

Life insurance comparison Australia

There are many life insurance companies in Australia.  Here life insurance comparison Australia is described briefly. 

TAL Life Limited
  1. It was known as Tower Life before, now owned by Dai-Ichi Life Group (Japan).
  2. They paid $1.7 billion as the claim in 2017
  3. Customers may be benefited from TAL’s Health Sense rewards program.
  4. For the stepped premiums entry ages from 16 up to age 75 and age 60 for level premiums.
AIA Australia Limited
  1. It is owned by Hong Kong based AIA Group Limited.
  2. There are Stepped, level and hybrid premiums are active in this company.
  3. They have many savings and discounts service.
  4. Their entry age is 11 years old.
MLC Limited
  1. Japan’s Nippon Life is the proprietor of this company.
  2. The people ages 11 and 70 years old may be Customer of this company.
  3. In the case of level premium, age is limited for up to 60 years old.
  4. Through Track wellness program they provide discounts.
  5. They have launched the best Doctors worldwide network.
AMP Limited
  1. They aggregated with AXA in 2011.
  2. In 2018 they AMP Limited sold to UK’s Resolution Life Pty Ltd.
  3. People aged between 16 and 60 years old are to be clients in this company.
  4. Clients can save up to 10% on their premiums through Amp Elevate Healthy Start.
OnePath Limited
  1. ING Australia changed their name as OnePath when they sold to the ANZ Bank group.
  2. People aged between 18 and 59 years old are to be clients in this company.
  3. If anyone takes coverage for him/her self and a second life insured, he/ she will get a discount.
  1. The insurance is an organization of the Commonwealth Bank Group (CBA).
  2. CommInsure Life has been sold to AIA Group Ltd.
  3. They paid $1 billion as the claim in 2017
  4. People aged between 18 and 50 years old are to be clients in this company.
BT Financial Group
  1. The Westpac Group is the proprietor of BT Financial Group.
  2. People aged between 17 and 59 years old are to be clients in this company.
  3. They provide benefit from multi-policy discounts.
  4. Stepped and level premiums are available.
Asteron Life
  1. Suncorp Group Limited is the owner of this company.
  2. They provide discounts through Asteron Healthy Life Discounts.
  3. People aged between 18 and 62 years old are to be clients for stepped premiums in this company.
  4. People aged 60 are to be clients for level premiums.
Zurich Australia Limited
  1. It is a global insurance company based in Switzerland.
  2. People aged between 10 and 70 years old are to be clients in this company.
  3. There are Multi-policy and multi-lives discounts are generally available here.
MetLife Insurance Limited
  1. They paid $488 million as the claim in 2017.
  2. MetLife Insurance is an associated organization of Metropolitan Life Insurance company in the US.
  3. People aged between 15 and 73 years old is to be clients for stepped premiums in this company.
  4. People aged up to 59 are to be clients for level premiums.

How to choose the best life insurance in Australia

The best life insurance company is not the same for all. It may be different for a man to man. When a  life insurance company suits a person’s requirements and fits his/her budget as well as brings peace in client’s mind that his/her family will be protected of his/her passing way or get diagnosed with a terminal illness. That life insurance company becomes the best life insurance company for this client.

There are many factors should be considered before choosing a life insurance company such as claim benefits, policy features, the short and long-term affordability of client’s premium.

1. Meet your specific requirements

You have to sure that the company provides you with coverage as your requirements and your family can get compensation when you pass away. Also, you should consider funeral advancement benefit that is provided by the insurance company.

2. Possibility of claims being paid

Australian Prudential Regulation Authority (APRA) regulates all life insurance companies in Australia. APRA facilitates to ensure the insurance company to make the funds to meet their claims obligations. In the report of the ASIC 498 on life insurance claims that your claim has a 71% higher chance of being declined if you purchase directly from the company (without advised) compared to purchasing life insurance through a Retail distribution channel ( with advice)

3. Terms and conditions

You should read the company’s Product Disclosure Statements (PDS) carefully so that you can understand exactly what will cover and what will not. There is a far difference among the offers from direct insurer vs a retail insurer and a group super fund. For that reason, it is very much important to read the terms and conditions carefully.

4. Policy price

You should calculate whether you will be able or not to pay premiums nor and in the future. If you are seeking short-term premium, it is best for you to select a stepped premium. On the other hand, if you are capable to adopt higher premiums, that do not increase every year with your age increasing, in this case, level premiums is better for you.

5. Rewards and discounts:

Many companies have healthy living rewards, you should consider it, which help you to live a healthier life. On the other, sometimes some companies announce discounts, you can take the opportunity for reducing your premium.

6. Quality ratings

You can follow the insurance rating which is done by an authentic authority such as Standard & Poors. You can choose the top-rated companies.

7. Customer reviews

You can also follow the customer reviews and complaints for choosing favourable life insurance. You can also review the past and current members’ experience.

8. Client care

When you choose an insurance policy you may have some question that is why you should take the assistance of client care personnel.

There are many qualitative and authentic life insurance in Australia. Some life insurance may be suited for someone and some are suited for others.  It depends on Clint’s demand and objective. So you can choose your best life insurance in Australia by following the above principle.

Leave a Comment