A Comprehensive Guide to Choosing the Best Life Insurance in Australia 2023

Did you want to buy life insurance for yourself and your family? Here we share a lot of informative guides related to life insurance. Apart from that, we also discuss some excellent life insurance plans to protect against any consequences.

But before that, we first take Quik’s look at life insurance. And how it works.

What is Life insurance:

 Life Insurance

Life insurance is a contract between the policyholder and the insurance company. The policyholder pays regular premiums in exchange for a lump-sum payout to their beneficiaries upon their death or terminal illness.

This payout can cover expenses such as funeral costs, outstanding debts, and mortgage payments and provide financial support for the policyholder’s dependents.

The coverage and premiums depend on factors such as age, health status, lifestyle habits, and the desired payout amount. It is important to carefully consider these factors and choose a policy that best fits your needs and budget.

Life insurance covers death by any cause, although suicide is usually excluded for a set period of time of the policy. A pay out to family will normally occur if the death is related to an event such as:

  • accidents
  • natural causes
  • medical complications
  • acts of violence.  

Types of Life Insurance:

There are different types of life insurance to suit your circumstances. The main ones include:

  • Life cover. Insurance that pays a lump sum to your nominated party when you die. The cash payout to your family can be as much as $1 million, depending on your age. General entry age requirements are 18 to 79 years.
  • Trauma cover. It pays out if you are diagnosed with a specific illness, e.g., a stroke, so that you can focus on your recovery. This is sometimes called ‘critical illness’ or ‘recovery insurance’ and pays a lump sum if you suffer a severe illness or injury. This includes cancer, a heart condition, significant head injury, or stroke. Trauma insurance does not cover mental health conditions. General entry age requirements are 18 to 64 years.
  • Total and permanent disability (TPD) insurance. Provides payment to clear debts and cover medical costs if you become permanently disabled. The lump sum also helps with rehabilitation and living costs. General entry age requirements are 18 to 64 years.
  • Income protection insurance: Generally, the payout on this insurance will be monthly, usually 85% of your bills. This type of insurance is taken out to cover expenses should you need to take time off work due to illness or accident.
  • Funeral cover: As the name suggests, funeral insurance is designed to help your loved ones pay for the cost of your funeral in the event of your death.

Amy Gran Fondo 2023

How to Choose the Right Life Insurance

When you are considering taking out a life insurance policy, it’s important to not only rely on reviews and recommendations from others but also take into account these key factors when taking out life insurance:

How Much are the Monthly Premiums?

While most insist that life insurance is not as expensive as most people assume, at the end of the day, you must be happy with the price. Ensure you know what the monthly premiums will be and whether or not they will rise in the future. Naturally, they will increase as you age, but make sure you’re financially comfortable with these hikes. People either opt for ‘stepped premiums’ that are recalculated annually (usually at a higher level) or ‘level premiums,’ which are higher. Still, price increases happen more slowly as they are not indexed to age.

What are the Waiting Periods?

Like most forms of insurance, waiting periods apply in particular life insurance products, especially income protection. Check your policy to determine the waiting period for different types of life insurance and shop around for a policy with a low wait time, as they can range from a handful of weeks to many months.

What are the Exclusions?

All policies feature exclusions of some kind, and typically, life insurance doesn’t cover suicide or any risky activities or behaviors. Please read the fine print carefully, as what falls within these exclusion definitions may surprise you.

How does the Claims Process Work?

Life insurance claims can be lengthy and stressful. This is where independent online reviews can be beneficial. Look for companies that prioritize good customer service and speedy claims processing.

Any Additional Features?

Do you get a discount if you have multiple insurances with the company? Does it offer cover of more than two million dollars? (Most top out at this range). Is the policy underwritten by an insurer you can trust? All of these additional features can be considered when deciding on the best life insurance policy for you.

 life insurance companies in Australia:

Here’s the complete list of registered life insurance companies in Australia as of march 2023:

  1. AIA Australia Limited
  2. AIG Australia Limited
  3. Allianz Australia Life Insurance Limited
  4. AMP Life Limited
  5. ANZ Lenders Mortgage Insurance Pty Limited
  6. Asahi Holdings (Australia) Pty Ltd
  7. Asteron Life & Superannuation Limited
  8. BT Financial Group Pty Limited
  9. ClearView Life Assurance Limited
  10. Colonial Mutual Life Assurance Society Limited
  11. Combined Life Insurance Company of Australia Ltd
  12. CommInsure Life Insurance Company Limited
  13. Hannover Life Re of Australasia Ltd
  14. Integrity Life Australia Limited
  15. Life Insurance Corporation (Australia) Limited
  16. MLC Limited
  17. Munich Reinsurance Company of Australasia Limited
  18. OnePath Life Limited
  19. PPS Mutual Limited
  20. QBE Life (Australia) Limited
  21. St Andrew’s Life Insurance Pty Ltd
  22. TAL Life Limited
  23. The Colonial Mutual Life Assurance Society Limited
  24. Zurich Australia Limited
  25. Zurich Financial Services Australia Limited.

top insurance Providers in Australia

Company nameClaims accepted rateMonthly premium*Market share
AIA96.7% $42.8318.2%
Clear View$38.331.8%
Met Life$37.065.2%
One Path99.7%$31.48N/A
Neos$35.32  N/A

‡ The number of finalised claims is too small to provide a reliable result.

We hope you gained helpful information from this article. If you have doubts or questions regarding Life insurance, comment below. We are happy to help you.