Life Insurance Comparison

Why compare life insurance with Canstar?

No cost to you

Using our comparison tool to find a better deal is free. We may receive a commission from our Online Partners if you apply for a life insurance policy you find on our site.

Expert research

Our team of life insurance research experts crunch the numbers to rate life insurance based on value (price as well as features) to help you compare. Read the life insurance methodology.

A wide range of insurers

We rate and review life insurance policies from more than 10+ brands which means you can compare and choose products from both large and challenger brands, established and new.

Easy to compare & apply

Our life insurance comparison tool allows you to filter your search results so it’s easy to find the right product for you. What’s more, you can click straight through to many of our Online Partners, making it easy to apply instantly.

Better deals are found when you compare

Canstar helps millions of Australians each year compare and find better deals

Sally Tindall’s guide to comparing life insurance

Life insurance tips from our expert

Sally Tindall, Canstar Director of Data Insights

Understand what you’re actually covered for

Life insurance policies aren’t all created equal. Some cover death only, while others include critical illness or total and permanent disability. Before signing on the dotted line, take a moment to check exactly what’s included—because the last thing you want is to assume you’re covered, only to find out later that you’re not.

Reassess your cover as life changes

Got a mortgage? Started a family? Changed jobs? Life doesn’t stand still, and your insurance needs shouldn’t either. If your circumstances shift, your cover might need an update too. A quick review each year—or whenever a major life event happens—can help make sure your policy still makes sense for you.

Don’t pay for cover you don’t need

It’s easy to overdo it with life insurance, but paying for a hefty policy when you don’t need that level of cover is just throwing money away. Work out how much your family would actually need if something happened to you—think mortgage, education costs, and ongoing expenses—then tailor your policy accordingly.

Compare before you commit (or renew)

Loyalty might feel nice, but it won’t necessarily get you the best deal. Insurers regularly tweak their rates and offerings, so shopping around before you sign up (or renew) can save you serious cash. Just make sure you’re comparing apples with apples—cheaper premiums might mean fewer benefits or exclusions that could catch you out.

Consider age-stepped premiums carefully

Age-stepped premiums start low but increase as you age, while variable premiums set a fairly consistent price from the start. Age-stepped might seem like a no-brainer early on, but costs can skyrocket later in life. If you’re in it for the long haul, weigh up whether variable premiums might actually save you money down the track.

A little research now can save you headaches (and dollars) later. Take the time to review, compare, and tailor your life insurance to suit your actual needs—you’ll thank yourself in the long run. 

What is life insurance?

Life insurance can provide a lump sum payment to your beneficiaries —such as your partner, children or other family members—if you pass away or are diagnosed with a terminal illness with a life expectancy of 12 months or less. Depending on the insurer and policy you choose, this payment could help your loved ones cover costs such as a home loan, other loan repayments and ongoing expenses such as school fees.

What are the different types of life insurance in Australia?

There are four main types of cover grouped more broadly under life insurance:

Term life insurance

Also known as death cover, term life insurance pays out a lump sum to your nominated beneficiaries if you pass away or are diagnosed with a terminal illness. This form of life insurance can usually be taken out in three different ways:

• As a direct policy purchased from a provider, generally via its website or over the phone. You can compare direct life insurance policies using the table above, and it’s also the type of life insurance Canstar considers in its Life Insurance Star Ratings and Awards research.
• Through an intermediary such as a specialised financial adviser or insurance broker. This is often referred to as advised life insurance.
• Provided by a super fund, where you can pay your premiums as part of the fees your fund charges you. Many super funds will offer this cover by default to eligible members. Life insurance through super can often be convenient and relatively inexpensive, although it can have some downsides e.g., it can reduce your retirement balance and may not give you the coverage you require.

Total and Permanent Disability insurance

Total and permanent disability (TPD) insurance pays you a lump sum of money if you become permanently disabled and unable to ever work again, either in your current job or in any occupation you’re qualified for, depending on the insurer. You can compare TPD insurance with Canstar. This form of insurance can also be taken out through a financial adviser or your super fund.

Income protection insurance

Income protection insurance involves the insurer paying you a percentage of your pre-tax income if you become unable to work for a period of time due to illness or injury. Income protection can be purchased either directly, through an adviser or within super. You can compare direct income protection insurance with Canstar.

Trauma insurance

Trauma insurance (also known as critical illness or recovery insurance) pays you a lump sum if you suffer a significant injury or illness such as cancer, a stroke or a head injury. You can usually take out trauma insurance directly through an insurance provider or via an intermediary like a financial adviser. New trauma insurance policies aren’t currently offered through superannuation.

How does life insurance work?

Taking out life insurance usually involves a few key steps:

Applying for cover

Once you’ve chosen the type of life insurance you want, you’ll need to apply for a policy. If you’re applying directly with an insurance provider or through an adviser, you’ll usually go through a process called underwriting.

This typically involves answering questions about your health and lifestyle, such as your age, occupation, whether you smoke and the activities you take part in. It’s important to answer honestly, as incorrect information could affect a future claim.

Choosing your cover amount

You’ll also need to decide on the sum insured, which is the lump sum that could be paid if a claim is approved. Life insurance through superannuation is often provided as default cover and may not require underwriting. However, you may still have the option to adjust your benefit amount or apply for additional cover.

Paying your premiums

Your insurer will set a premium based on the information you provide. This is the amount you’ll need to pay to keep your policy active. Many policies use age-stepped premiums, which generally increase as you get older. Some insurers offer variable premiums, formerly known as level premiums, which stay more consistent over time but usually start at a higher cost. In some cases, insurers may also exclude certain pre-existing medical conditions from cover.

Claiming if an insured event occurs

Once your policy is active, you or your beneficiaries can make a claim if an insured event occurs, such as death or terminal illness, in line with the policy terms.

What is a life insurance beneficiary?

A beneficiary is a dependant you nominate to receive a life insurance payout if you were to make a claim. A dependant for life insurance terms is outlined as:

• A spouse, including married, de facto and same-sex partners
• A child, including adopted, stepchildren, non-related children from previous marriages and children of the current spouse
• Someone you live with, where one or both of you provide financial, domestic and personal support
• Someone who relies on you for financial support
• Your Legal Personal Representative (LPR), who is usually the executor or administrator of your estate

Simply naming someone in your Will doesn’t necessarily mean they’ll receive your life insurance payout. Generally speaking, if you want your payout to be distributed from your estate, you’ll need to nominate either your legal personal representative or estate as your beneficiary.

This is similar to if your life insurance is provided through super, where you’ll need to nominate a beneficiary through your super fund. You can do so in two ways:

• Non-binding nomination: This is usually the default option where the super fund trustee (the person or company managing the super fund) decides who receives the payout. In this case they have the discretion to pay the benefit to whoever they deem to be your legal dependants, which may lead to a complex family situation in some cases.
• Binding nomination: The trustee must pay the benefit to your nominated person as long as they’re considered a legal dependant as outlined above. Binding nominations may lapse every three years, so it’s important to review your nomination to ensure it hasn’t lapsed.

What is a life insurance exclusion?

An exclusion is an event or situation in which your policy will not cover you. Common exclusions in life insurance are:

• Dangerous occupations where injury or death may be more likely to occur (e.g., truck drivers, forestry and construction workers etc.)
• Partaking in high-risk hobbies such as skydiving, hang-gliding and motor racing
• Claims arising from suicide or self-harm (there may be a 12- to 24-month waiting period associated with claims of this nature)
• Providing false or misleading information to your insurer
• Illegal or criminal actions that result in a claim
• Claims arising from reckless or negligent behaviour (e.g., dangerous driving or ignoring warnings)
• Certain pre-existing medical conditions, especially those not disclosed to the insurer
• Claims arising from substance abuse
• Not paying your premiums, which would lead to your cover lapsing
• Travelling to high-risk locations, especially those with a Smartraveller advice level of ‘Do not travel’
• Acts of war or terrorism

Check your policy’s Product Disclosure Statement (PDS) for more information on what is and isn’t covered.

What are pre-existing conditions in life insurance?

In life insurance terms, a pre-existing medical condition is one that you’ve been treated for or have shown symptoms of in the past. Even if your condition has been successfully treated, you’ll still need to disclose it to your potential life insurer. Different insurers may define pre-existing medical conditions in different ways, so it’s worth contacting your chosen insurer to find out how they choose to define them.

Examples of pre-existing medical conditions

• Arthritis
• Asthma
• Cancer
• Diabetes
• Heart Disease
• High blood pressure
• High cholesterol
• Kidney or live disease
• Melanoma
• Mental health conditions (including anxiety and depression)
• Musculoskeletal conditions
• Sleep apnoea
• Stroke

Examples of medical conditions that may not be considered pre-existing

• Injuries that you’ve fully recovered from (i.e., broken bones)
• Minor colds and flu
• Minor surgeries, such as wisdom tooth extractions
• Non-chronic skin conditions, such as mild eczema or acne
• Routine pregnancies
• Seasonal allergies

Can you apply for life insurance with a pre-existing medical condition?

You may still be able to take out life insurance even if you have a pre-existing medical condition, but it will depend on your insurer. In some cases, they may ask you to undergo a medical examination to better understand the risks associated with your condition.

When applying with a pre-existing medical condition, an insurer may choose to:

• Cover your pre-existing condition
• Exclude the condition from coverage, meaning claims arising due to the condition may be denied
• Cover the condition at an increased premium
• Be unable to offer you coverage at all

If you have default life insurance provided by your super fund, your pre-existing medical conditions may be covered automatically without you needing to undergo a medical examination.

What optional extras can you get with life insurance?

Like other forms of insurance, life insurance comes with optional forms of cover you can add to your policy—usually for an additional premium. These can include:

• Accidental death benefits: Provides an additional benefit to your beneficiaries if your death is caused by an accident.

• Buy back options: If you have a linked policy (e.g., term life cover and TPD) and make a claim on your TPD cover, your term life cover benefit amount will usually drop by the same amount. This feature allows you to reinstate your original amount 12 months after a claim, without needing to undergo a new medical exam.

• Children’s cover: Offers a lump sum if a dependant child passes away or is diagnosed with a specified critical illness (like cancer or major organ failure).

• Waiver of premiums: Waives future premiums if you become totally disabled and unable to work.

How much does life insurance cost?

Canstar Research has crunched the numbers using a range of policies in our database and here’s the average monthly cost of direct life insurance premiums:

← Mobile/tablet users, scroll sideways to view full table → 

About our finance experts

Josh Sale, Life Insurance Ratings Manager

As Canstar’s Group Manager, Research, Ratings & Product Data, Josh Sale is responsible for the methodology and delivery of Canstar’s Life Insurance Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right life insurance policy for them.

Josh is passionate about helping consumers understand that their insurance needs don’t necessarily stop with getting cover for their car and home. He says life insurance can play a crucial role in providing financial security, particularly for those with a family to support. With life insurance available to most Australians inside and outside of super, Josh believes it’s important to understand what type of cover is going to offer adequate protection and says the birth of his child was the catalyst for reviewing his own life insurance.

As one of Canstar’s spokespeople, Josh has been interviewed on a wide range of personal finance topics by media outlets such as the Australian Financial Review, news.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on X and Facebook.

Nick Whiting, Insurances Writer 

Nick is Canstar’s Insurances Writer, providing assistance to Canstar’s Editorial Team in its mission to empower consumers to take control of their finances. He has written hundreds of articles for Canstar across all key finance topics. Coming from a screenwriting background, Nick completed a Bachelor of Film, Television and New Media Production from Queensland University of Technology.

Nick has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities.

Nick’s role at Canstar allows him to combine his love of the written word with his interest in finance, having learned the art of share trading from his late grandfather. Nick strives to deliver clear and straightforward content that helps the everyday consumer navigating the world of finance. Nick is also working on a TV series in his spare time.

You can connect with Nick on LinkedIn.