Direct Life Insurance Star Ratings For 2016

9 June 2016
Canstar releases its Direct Life Insurance Star Ratings report today, assessing 31 direct life insurance policies from 28 insurers

Australians are well-used to using the internet for their buying decisions across many categories now and life insurance, it seems, is no exception, with a recent Life Insurance Whitepaper finding that almost half of us would be happy to buy life insurance online, and one-third of us are already researching their options online.

“The Life insurance buying process is being heavily disrupted by digital technology,” said Anthony Brown, CEO of NobleOak Life Limited.

“Customer behavior is rapidly transforming the industry and driving insurers to be more digitally innovative; 32 percent of people seeking to obtain financial advice for Life insurance use the internet to do so.”

Buyers getting more for less

Canstar’s annual research of direct life insurance policies has found evidence of both this disruption and transformation, with policies offering impressive levels of coverage and additional features for very reasonable annual premiums.

“Direct life insurance policies have become increasingly feature-rich over the past twelve months,” said Canstar Group Manager, Research & Ratings, Mitchell Watson.

“We are seeing a greater number of funds offering optional extras such as funeral insurance, trauma cover and total and permanent disability cover. We are also seeing an increase in the maximum sum insured value, an increase in the number of funds offering guaranteed future insurability and premium waiver under certain conditions.”

Premiums up in smoke

As all smokers know, their habit is expensive – and that cost flows through to their life insurance premiums.

Based on the cost of $500,000 of life insurance, has calculated the average monthly premium for both males and females, smokers and non-smokers, as follows:

Average Monthly Premiums – for Males
20 – 29 30 – 39 40 – 49 50 -55 Late Fifties
Non-Smoker $51 $49 $83 $169 $310
Smoker $83 $90 $170 $342 $600
Difference 63.44% 82.37% 103.67% 102.55% 93.10%
Figures based on $500,000 sum insured amount, policies assessed by Canstar in 2016 for Direct Life star ratings
Average Monthly Premiums – for Females
20 – 29 30 – 39 40 – 49 50 -55 Late Fifties
Non-Smoker $35 $39 $70 $130 $214
Smoker $54 $63 $127 $233 $376
Difference 56.02% 62.79% 81.92% 79.34% 75.30%
Figures based on $500,000 sum insured amount, policies assessed by Canstar in 2016 for Direct Life star ratings

“Obviously that type of cost is going to be uneconomic for some people, particularly as they age, which can result in a lack of insurance right at the life stage when they need it,” said Mr Watson.

NobleOak Life Ltd and Insure Me Now on winning the 2016 Outstanding Value – Direct Life Insurance awardWhich insurers offer outstanding value?

Canstar has researched and rated 31 direct life insurance policies from 28 insurers and is pleased to congratulate NobleOak Life Ltd and Insure Me Now on winning the 2016 Outstanding Value – Direct Life Insurance award.

“This win is the third year in a row for Insure Me Now and their product continues to provide a winning combination of price and features,” said Mr Watson.

“NobleOak are first-time winners this year but equally impressive. They have recently revamped their direct life offering with some terrific new features and again, at a market-competitive price.”


For further information:
Justine Davies
Editor in Chief
Ph. (07) 3837 4151 / 0400 127 733


Canstar provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, Canstar Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. Canstar customers use the extensive database for competitor analysis as well as a means of disseminating their product range. Canstar also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.

What are the Canstar star ratings?

Canstar researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the Canstar website at if you would like to view the latest star ratings reports of interest.

Account based pensions Managed investments
Agribusiness Margin lending
Business banking Online banking
Business life insurance Online share trading
Car insurance Package banking
Credit cards Personal loans
Deposit accounts Reward programs
Direct life insurance Superannuation
First home buyer Term deposits
Health insurance Travel insurance
Home & Contents Travel money card
Home loans Youth banking
Life insurance


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