You’ve made the decision to purchase life insurance; now you’re wondering which life insurance company is the best. Finding the right type of cover at the right price can help ensure your loved ones will be financially supported when you pass away.
Top 10 Life Insurance Companies In Australia
Every person is different, so it makes sense that your policy should be specific to your unique requirements. ComparingExpert compares a number of Australia’s top life insurance companies and policies free of charge.
Your life insurance journey
There is no one ‘best life insurance company’. If there were, we’d all buy from that company and have similar life insurance policies. The reality is, each life insurer is different. A company that’s well suited to a non-smoking father of 4 with a family history of heart disease might not be the best option for a single, career driven, 20-something male, smoking a pack a day.
Life insurance companies in Australia offer competitive premiums and benefits to suit people at different stages of their lives. However, some companies might offer better rates and coverage than other companies.
To help you get started with your insurance journey, we’ve compiled a list of life insurance companies in Australia, highlighting the top 10 by market share.
Top 10 life insurance companies in Australia
- TAL Life Limited: Ranks 1st, with a market share of 16.6%
- AIA Australia Limited: Ranks 2nd, with a market share of 14.3%
- AMP Limited: Ranks 3rd, with a market share of 12.4%
- MLC Limited: Ranks 4th, with a market share of 12%
- Comminsure: Ranks 5th, with a market share of 11.1%
- OnePath Limited: Ranks 6th, with a market share of 10.3%
- BT Financial Group: Ranks 7th, with a market share of 6.5%
- Suncorp Life: Ranks 8th, with a market share of 5%
- Zurich Australia Limited: Ranks 9th, with a market share of 4.1%
- MetLife Insurance Limited: Ranks 10th, with a market share of 3.6%
This top 10 list is based on Strategic Insight market share report as of 26 April 2017. Market share fluctuates over the years due to a number of mergers and acquisitions within the insurance sector. Although a good indication of a company’s worth, it should not be the key determining factor when choosing the appropriate cover for your needs and circumstances.
All insurers are regulated by APRA to ensure they have sufficient financial reserves to meet their obligations.
How to choose the best life insurance company
The best life insurance company is the one that suits your needs and fits your budget while providing you peace of mind that your family will be protected when you pass away. There are various factors to consider before choosing a life insurer, like the features and benefits they provide in their policy and the short and long-term affordability of their premiums.
Adequate to your needs
Make sure the company you choose provides you peace of mind knowing your family will be able to live the life they are accustomed to, or if you’re single make sure your cover is enough for mortgage repayments and other debts. Also, consider life insurance that offers a funeral advancement benefit, so your loved ones won’t need to worry about paying for your final expenses.
Terms and conditions
Finding the best policy for you and your family should be determined by the company’s policy offering terms and conditions which you can read up on in their Product Disclosure Statements (PDS). 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 through the product disclosure statement (PDS) of each policy you are considering.
Ensure 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 off with higher premiums, which don’t increase every year due to your age, then a company offering level premiums might be for you.
Likelihood of claims being paid
All life insurance companies in Australia are regulated by the Australian Prudential Regulation Authority (APRA), which helps to ensure the insurer will have the funds to meet their claims obligations.
However, according to the ASIC 498 report into life insurance claims, your claim has a 71% higher chance of being declined when purchased directly from the insurer (not- Advised) compared to purchasing life insurance through a Retail (Advised) distribution channel.
Ratings are given by an independent entity such as Standard & Poors. While a rating from an independent source does not tell you how good a policy is, it does help you measure the insurers’ creditworthiness, which further indicates whether a company will be able to pay claims now and in the future.
If an insurer is rated as AAA, they are regarded as having extremely strong financial security characteristics. AA is very strong, and A is strong but somewhat more likely to be affected by adverse business conditions. The (+) or (-) sign following the rating show relative standing within the major rating categories
Life insurance reviews
Read customer reviews and complaints about the various companies to determine how their past and current members experienced them.
You might want to consider how easy or difficult it is to talk to a real human. When you have questions or need to submit a claim, it’s important to get hold of a competent customer care person to help you.
Discounts and rewards
Consider companies that add even more value to their policyholders by helping them save on their premiums and encourage them to live healthier lives. Although reward programmes should not be the deciding factor when choosing a company, it does add that something extra.
Following your understanding of the cover you need, the best way to find the life insurer for you is to compare their products against other companies offering similar products and review the differences in premiums and coverage offered.
Take note: The below example premium per month is based on $700,000 of cover for a female, non-smoker aged 35 as of 12 July 2017. The cost of coverage will vary amongst companies, which is why you might want to consider getting life insurance quotes from at least a few companies for comparison.
|Company||Market Share||Standard & Poors Rating||Policy||Example premium p/m||Rewards & Discounts you could qualify for|
|TAL Life Limited||16.6%||Not Rated||TAL Accelerated Protection||$30.97||TAL Health Sense|
|AIA Australia Limited||14.3%||A+||AIA Priority Protection||$30.91||AIA Vitality|
|AMP Limited||12.4%||AA-||AMP Flexible Lifetime||$36.07||AMP Elevate|
|MLC Limited||12%||AA-||MLC Insurance||$28.17||MLC On Track|
|Comminsure||11.1%||A+||Comminsure Protection||$32.79||Loyalty bonus benefit|
|OnePath Limited||10.3%||A+||OnePath Onecare||$31.86||Frequent flyer points|
|BT Financial Group||6.5%||A+||BT Protection Plans||$32.23||Loyalty benefits & multi-policy discounts|
|Suncorp Life (Owner of Asteron Life)||5.0%||Not Rated||Asteron Life Complete||$31.08||Healthy lifestyle discount|
|Zurich Australia Limited||4.1%||A+||Zurich Wealth Protection||$32.14||Multi-life discounts|
|MetLife Insurance Limited||3.6%||Not Rated||MetLife Insurance||-||-|
About the top life insurance companies in Australia
How many life insurance companies are there in Australia?
There are about 29 life companies in Australia (as of July 2016). Below is the complete list of registered companies in Australia, including the top 10.
- AIA Australia Limited
- Allianz Australia Life Insurance Limited
- AMP Life Limited
- Challenger Life Company Limited
- ClearView Life Assurance Limited
- Colonial 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
- Macquarie Life Limited
- MetLife Insurance Limited
- MLC Limited
- Munich Reinsurance Company of Australia Limited
- OnePath Life Limited
- Pacific Life Re (Australia) Pty Limited
- QBE Life (Australia) Limited
- QInsure Limited
- RGA Reinsurance Company of Australia Limited
- SCOR Global Life Australia Pty Limited
- St Andrew’s Life Insurance Pty Ltd
- St. George Life Limited
- Suncorp Life & Superannuation Limited
- 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
Frequently asked questions about life insurance companies
Yes, a life insurer can cancel your policy when 1. You don’t pay your premiums 2. You fail to comply with your duty of disclosure 3. Your policy reaches the expiry date. If this is the case, generally you will not receive any refunds on the premiums that you had already paid, except when the cancellation was due to non-disclosure.
When completing your life insurance application form, you’ll be asked to disclose whether you smoke or use drugs. Whether you use drugs or smoke can make a big difference in how expensive your premiums will be, due to your increased risk of developing health problems.
A life insurer will generally not ask for the relevant blood tests at application time. However, when a claim is submitted your insurer will request your medical files from your doctor(s). If it is then revealed that you were not honest, your claim could be declined. Therefore best to fully comply with your duty of disclosure to ensure there are no issues around claim time.
ComparingExpert will help you compare and review life insurance companies so you can decide which one will provide you with the best coverage at the best price.
Qantas now offers life insurance cover! We compare Qantas life insurance, TPD, Trauma & Income Protection. You decide if what they offer suits your needs.
Compare ClearView Insurance today! ClearView offers Life, Trauma, TPD and Income Protection Insurance! Compare built-in benefits, policy options and sums insured
BT Financial Group now offers BT Insurance to Australians, including life insurance & income protection, as well as their existing superannuation offering.
Compare Commbank's CommInsure Life Insurance or Income Protection Insurance policies to 15 other companies to get a better deal!
Compare Asteron Life Insurance or Asteron Income Protection policies to 10 other major life insurance companies ✓ Premiums & features compared side by side!
Compare AMP Life Insurance & Income Protection policies with 10 other major life insurance companies in Australia to see if you can SAVE on your premiums!