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.

Published January 20, 2022

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Top 10 life insurance companies by market share

  1. TAL Life Limited: Market share of 27%
  2. AIA Australia Limited: Market share of 18.9%
  3. Zurich: Market share of 14.1%
  4. MLC Limited: Market share of 10.9%
  5. Resolution Group (AMP): Market share of  8.4%
  6. BT/Westpac Financial Group: Market share of 5.6%
  7. Metlife Insurance: Market share of 1.7%
  8. 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)

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

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:

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:

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

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

Learn more about TAL

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.

AIA

Common Built-in benefits

Learn more about AIA

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.

Zurich

Common Built-in benefits

Learn more about Zurich

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.

MLC

Common Built-in benefits

Learn more about MLC

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

Learn more about BT

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

Learn more about MetLife

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

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:

Source: Australian Prudential Regulation Authority (APRA)

Frequently asked questions and answers

  • Who has the best term life insurance policy?

    The best life cover company for you depends on your unique requirements, for example, your current lifestyle, budget, family responsibilities and health. Ask an insurance specialist to help you conduct a needs analysis to determine which insurer will meet your requirements.
  • Who are the top 5 insurance companies?

    The top 5 life insurance companies by market share are TAL, AIA, Zurich, MLC and Resolution group. This means that these companies should be fairly stable. However, it’s important to note that market share should not be the only factor you look at when finding the best company for you and your family. It’s generally a good idea to compare several companies’ features, benefits and exclusions.
  • Which life insurance company is best at paying claims in Australia?

    Currently, Onepath has the highest claims accepted rate for death cover purchased through a financial provider for 1 July 2020 to 30 June 2021. In this period, the insurer accepted 98.1% of the claims they received in 2021. They are followed by Zurich who accepted 97.7% of claims, and TAL which accepted 97.5% of the claims they received.
  • Who regulates life insurers?

    Under the Insurance Act 1973, the Australian Prudential Authority (APRA) regulates life insurance companies. The Australian Securities and Investments Commission (ASIC) is responsible for licensing financial services providers, including companies that offer life insurance products. ASIC also regulates consumer protection in the financial services industry.
  • Can you switch life insurers?

    Yes, generally, you can switch from one insurer to another. With empowered consumers on the rise, there has been an increase in Australians choosing to change life insurers to find better value. However, do not cancel one policy before your new policy commences to make sure you are covered between policies.
  • Can you switch life insurance companies?

    Yes, generally you can switch from one insurer to another. With empowered consumers on the rise, there has been an increase in Australians choosing to change life insurers to find better value. However, to make sure you are covered between policies, do not cancel one policy before your new policy commences.
  • What the difference between whole vs term life insurance policies?

    A whole life insurance policy has both an insurance and investment component, thus providing customers with a surrender or cash value. Whole life policies are no longer available in Australia. Term life insurance policies expire at a specific term, as set out by your insurer. Although it does not offer a cash-back or investment option, it is generally cheaper than whole life and the most popular personal insurance policy type available in Australia.

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