Top Life Insurance Providers in Australia

by Nancy

Life insurance is something most people do not think about until they are a little older and have a family of their own. Whether it be a significant other, child, or any other individual that depends on you financially, there has to be some kind of safety net that will take care of them should you pass away unexpectedly.

Unfortunately, while many people see the need for life insurance, not everyone knows where and what to look for in a policy. If you find yourself in this camp, then read on, as this article will examine exactly what to look for in a life insurance policy as well as some of the top life insurance companies in Australia.

Life Insurance

What to Look For In A Life Insurance Policy

As is to be expected, not all life insurance policies are the same, and there is a great deal of variance from one contact to the next. Because of this, there are several key factors everyone should consider when reviewing their different options, the most important of which are listed below.

  • Affordability: First thing first, how much can you afford? No matter how good a policy may be, it is of little use if you cannot afford to make the monthly payments. When comparing different prices, it is important to think about the future; life can change quickly, and what you can afford now may not be what you can afford in the future.
  • Terms And Conditions: Underwriting leniency differs significantly between providers. When looking at a policy, it is important to examine how they price different items such as pre-existing medical conditions, travel outside the US, smoking, and family medical history.
  • Payout Amount: Payout size varies drastically and is based on several factors, including monthly premiums, medical history, lifestyle, etc. After all, the payout amount may be what your dependents end up living off of in the event of your passing, and you want it to be enough so that they don’t suffer financial hardship.
  • Eligibility: When purchasing life insurance, one of the first things a provider will have you do is undergo a medical exam. Aside from the basic information such as height, weight, age, and medical history, they will also examine your lifestyle and habits to see what kind of risk you present. Those who have a history of unhealthy lifestyle/health decisions may be presented with higher than average monthly payments or deemed ineligible altogether.

What to Look For In A Life Insurance Company

Just like policies, not all life insurance companies are the same, and they must be judged on a set of criteria. For those who do not know where to start, the following list includes the most essential bits of information you should look for in a provider.

  • Market Share: In general terms, market share refers to how much business in a particular market a company receives. In most cases, the higher the market share, the more successful the business can be assumed to be. When it comes to life insurance, a high market cap is an indication of success, meaning they are more likely to payout.
  • Customer Reviews: More often than not, you are better off going with a company that has many positive customer reviews than one that does not.
  • Financial Position: When looking at insurance policies, savvy shoppers will review the balance reports of different companies to see how healthy they are financially. Should an insurance company go bankrupt, it can cause significant issues for you and your dependents.

Top Life Insurance Providers in Australia

Tal Life Limited

Previously known as Tower Australia, Tal Life Limited is the largest insurance provider in Australia and currently enjoys a market share of nearly 30%. On top of its large market share, Tal Life is a bank-owned company and was created in 1869, meaning it is a well-run and well-established insurance company that has stood the test of time.

  • Paid $2.7 billion in claims in 2020 to nearly 37,000 customers and families
  • 95% claim acceptance rate
  • Funeral advance benefit of up to $25,000
  • Entry age from 16 to 75
  • Pays up to $10,000 if a child passes away from a medical condition
  • Policy can change if certain lifestyle/health choices are made

AIA Australia Limited

With 17.2% of the market share, AIA Australia is the second-largest life insurance provider in Australia. Aside from its high payout rates, AIA is known for its quality customer service and its desire to be on the cutting edge of medical technology, often being the first to provide coverage for new treatments and medicine.

  • $1.7 billion in claims paid out in 2020
  • Entry age as young as 11
  • Life insurance premiums can also be stepped, level, and hybrid
  • Pays 10% of the total insured amount (up to 20%) if your child dies before the age of 17
  • An advancement of 10% of the total insured amount (up to $25,000) is available immediately


Rounding out the top three providers is the Switzerland-based company Zurich, which currently enjoys a 15% market share in Australia. Along with health insurance, Zurich also offers permanent disability and income insurance at highly competitive rates.

  • Entry age as young as 10 and as old as 70
  • An advance of $15,000 is available to cover funeral expenses
  • Well established company, having been around for 185 years
  • Health and wellness program offers financial rewards for improvements in lifestyle changes
  • If immediate family members have to travel more than 100km, a full or partial refund of travel expenses can be granted


The last company on this list, MLC, was created over 125 years ago, and the majority of the ownership is currently held by Nippon Life. Along with its 11.2% market share, MLC is known for having the largest network of doctors available for a second opinion.

  • Advance of up to $20,000 is available to cover funeral expenses
  • One of the largest network of doctors in the entire country
  • Paid out more than $1.4 billion in claims in 2020
  • Policyholders can earn a 5% discount if they meet specific health and lifestyle goals