Australia’s best life insurance August 2022

Dad and child laughing, with a Mozo Experts Choice Awards badge for Life Insurance laid over the top.

Preparing for the unexpected is part of life’s journey. When it comes to ensuring the financial security of your family and loved ones, life insurance can be a great help in case you become ill, unable to work, or pass away unexpectedly.

The best life insurance policy includes adequate cover at a comfortable premium. However, if you don’t know how much cover you need, or where to compare life insurance policies, Mozo’s here to help.

Every year, our dedicated team of analysts trawl a wide range of policies for the Mozo Experts Choice Life Insurance Awards^. In 2022, our expert judges sifted through pricing and policy information from 21 different Australian life insurance providers to find the very best life insurance, income protection, and trauma cover. Only the best life insurance providers received awards for their standout coverages.

“Life insurance can help take care of the financial uncertainties your family may endure should you become terminally ill or pass away unexpectedly,” Mozo expert judge Peter Marshall said.

“Too often people are hesitant to discuss their mortality, but with the cost of living on the rise, it pays to have a great policy providing peace of mind that your family will be looked after.”

We’ve detailed the winning life insurance providers and policies below, across our Exceptional Value and Exceptional Quality award categories.

RELATED: Cheap life insurance

Expert recommendations: Mozo Experts Choice Award-winning best life insurance

Once a year, Mozo’s team of expert data analysts and researchers undertake a comprehensive review of life insurance policies available in Australia through our product database. They collect and calculate information on premiums and coverage to assess each policy, including running each through a range of scenarios and comparing quote prices. 

After all this work is done, we award the Mozo Experts Choice Awards^ to outstanding life insurance policies and providers in terms of quality and value.

In 2022, the team analysed 21 different insurance providers to find the best of the bunch. You can check out the full list of winners and get all the details about judging criteria at the Mozo Experts Choice Life Insurance Awards page. Or, you can read on to learn more about some of the policies that impressed the judges in the seven categories we assess.

Life Insurance Company Of The Year

NobleOak - Premium Life Direct*
  • Quality life cover up to $15 million
  • Policy can be renewed up to age 99
  • Fully underwritten to minimise claim delays

An incredible winner of a whopping seven 2022 Mozo Expert Choice Awards^, including Exceptional Value Life Insurance^, NobleOak’s premium life insurance policy stood out for its top value and quality for the fourth year in a row. NobleOak’s competitive life covers include optional extras such as income protection, TPD, and trauma, to give you the security you need. Policyholders with life insurance can  relax with cover up to $15 million and a $15,000 funeral advance benefit (T&Cs apply). 

Depending on your plan, other useful benefits could include financial advice, grief counselling, and advance death cover in the case of terminal illness. There’s even an option to freeze your premium so that your costs stay the same over time (just bear in mind this may also reduce your cover over time). If you select the optional (and award-winning) TPD cover, NobleOak also offers cover for 2 year, 5 years, or until age 65 benefit periods. 

Australian residents can take out new life insurance policies between ages 16 and 69, but they’re renewable until age 99. You can read the full product disclosure statement (available on NobleOak’s website) for a full list of exclusions and sub-limits that may apply.

Exceptional Value Life Insurance

Budget Direct - Premium Life Direct*
  • Up to $15 million benefit coverage
  • Includes a max $15,000 funeral advance benefit
  • Terminal illness benefit advance
Find out more

The astonishing winner of six Mozo Expert Choice Awards^, BudgetDirect makes an impressive debut this year by offering one of the most competitively priced policies across the broadest range of customers. BudgetDirect’s life, income protection, TPD, and trauma insurance covers are designed with security in mind. For customers looking for multiple insurance policies from the same provider, BudgetDirect could be a compelling (and award-winning) option.

Applicants between the ages of 16-69 can apply for up to $15 million in cover for their life insurance policy. Spectacular benefits include a future benefit increase without needing to provide further medical evidence, where BudgetDirect either increases your benefit by $100,000 or 20% of your original cover amount (whichever one is lesser). Potential events that could get you this increased benefit include the birth of a child or taking out a mortgage (T&Cs apply). Other benefits include a terminal illness death benefit advance, funeral advance, and a lump sum payment when you pass away, depending on your plan and level of cover. For their optional extra Disability Income Insurance cover, BudgetDirect offers 2-year or 5-year benefit periods. They are currently offering 1 month for free (T&Cs apply).

For a full idea of the terms, conditions, limits, and exclusions, read the product disclosure statement (PDS) on BudgetDirect’s website. 

Exceptional Value Life & TPD Insurance

TAL - Accelerated Protection*
  • $500,000 advance benefit for certain injuries
  • Health Sense discount for eligible customers
  • TPD cover up to $3 million
Find out more

First time winner TAL comes in hot with Exceptional Value Life & TPD Insurance for 2022. New applicants who are employed can apply between ages 16-75 (depending on selected plan) to experience some of the market’s most exceptional coverage, like its total disability insurance. Benefits for their optional TPD cover include a lump sum payment up to $3 million, a built-in $10,000 max Critical Illness cover for children, up to $500,000 in advance for certain injuries, and more (T&Cs and exclusions apply). 

As a special something, TAL offers an inflation protection benefit on eligible policy anniversaries to keep pace with the rising cost of living (T&Cs apply). Eligible policyholders under the age of 30 could also access a premium freeze benefit to maintain a fixed annual price (for reduced coverage overtime). 

For a full list of terms, conditions, and policy exclusions/limits, consult the product disclosure statement (PDS) on TAL’s website.

Zurich Ezicover Life Insurance

Life Insurance*
  • Life insurance cover from $50,000 to $1.5 million
  • $15,000 death advance benefit
  • First month of your premium free (T&Cs apply)
  • Access to Zurich’s Loving Life rewards program

Zurich’s Ezicover Life Insurance policy is available for Australians aged 19 to 69 years old (with rolling cover until your 99th birthday). Zurich’s life insurance has flexible lump sum cover that ranges from $50,000 to $1.5 million, depending on the age and needs of the insured party. Zurich offers a $15,000 cash advance payment after the death of the insured person, which you may receive while your claim is being assessed, to cover funeral costs for example. You may also be able to get cover for the first 30 days of your year’s premium for free, as well as access to lifestyle and entertainment offers from the Entertainment™ Book, through Zurich’s Loving Life rewards program. 

For a full list of terms, conditions, and policy exclusions/limits, consult the product disclosure statement (PDS) on Zurich’s website.

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

^See information about the Mozo Experts Choice Life Insurance Awards

Exceptional Value Income Protection

In this category, our Expert Judges assessed life insurance policies with income protection cover based on the cost of plans with both 1 and 3 month waiting periods, and one and two year benefit periods, for a variety of professions.

Out of all the policies, the best value standouts were:

  • Budget Direct
  • HCF
  • NobleOak
  • RAC

Exceptional Quality Life Insurance & Income Protection Awards 2022

In addition to our Value awards, Mozo also commends life insurance policies with the most generous range of features and coverage limits in the Exceptional Quality awards. 

The 2022 winners in these categories were:

  • Budget Direct - Exceptional Quality Life Insurance and Income Protection award winner
  • NobleOak - Exceptional Quality Life Insurance and Income Protection award winner
  • TAL - Exceptional Quality Life Insurance
  • RAC - Exceptional Quality Income Protection award winner

Interested in comparing life insurance policies? Head over to our life insurance hub.

Most common FAQs about life insurance

Why should I take out life insurance?

Life insurance could offer you and your loved ones extra financial protection if you die or become terminally ill. Claim payments from an eligible life insurance policy could lessen or eliminate the financial burden left to your family, and could help cover medical/funeral costs, consolidate debts, or pay for your children’s university education.

Different life insurances will have different exclusions for what they cover, and offer different levels of protection. Most will have an age limit for when you can take out a policy, so as you accrue debts and go through life, it’s important to consider whether a life insurance policy could help ease your family’s way if you’re no longer around to support them.

For more information, check out our article on why having life insurance could benefit you.

When should I get life insurance?

While the right time to get life insurance will depend on the person, it could be a good idea to take out life insurance when you start having people depend on you financially or when you accrue debt. Events like the birth of a child or taking out a home loan could be opportune times to take out life insurance. 

Most life insurance providers have age limits. Generally, you can purchase life insurance between the ages of 16 and roughly 75, depending on the provider. Life insurance will become more expensive with each passing year, so the early bird gets the discount. (Healthy lifestyle, young age, and other factors that lower your risk can make your premium cheaper, too).

How do I find the best life insurance?

The best life insurance policy should fit comfortably into your individual needs and budget. Adequate cover for you and your family could start with bare essentials or features extra covers, like advance funeral payments or total permanent disability cover. 

Life insurance policies will also often have ‘stepped’ or ‘level’ premiums, so you can decide how to budget costs over time. A stepped premium is recalculated every year based on your age (and will generally get more expensive with time), whereas a level premium is calculated based on the age you are when you first take out your policy. This means a level premium may be more expensive up front, but will get cheaper as your policy continues.

What life insurance do I need?

How much life insurance coverage you need will depend on your circumstances. In order to provide your loved ones financial security in the event you can no longer support them, it’s important to consider ongoing expenses, such as your current debt, income, ongoing household expenses, lifestyle costs, childcare, and home assistance.

Basically, you want to avoid underinsurance, which is when you are insured for less than what you need should the worst happen. There are different extras available with life insurance policies, too, which can give you more comprehensive protection.

Can I get life insurance with my super?

Absolutely! Buying life insurance through your superannuation fund can be an affordable and convenient way to get coverage. However, there are pros and cons to consider before deciding the best way to go about taking out a policy. 

For example, using your super to pay for life insurance can get you the cover you need without eating into your budget. You can also make before-tax contributions to your super to pay for your insurance, which may give you a tax-break.

However, if you don’t make these additional super contributions, the life insurance premiums could lessen your retirement savings. There are also different rules and exclusions around life insurance policies owned through your super, which could make benefit payments less tax-effective for your loved ones. 

You can help make a decision that works for you by consulting with a tax advisor.

Are life insurance premiums tax deductible?

Unfortunately, life insurance premiums aren’t usually tax deductible. However, when it comes to income protection insurance, you may be able to claim a deduction on your premium.

Are life insurance payouts taxable in Australia?

In most cases, life insurance payouts are tax-free in Australia. 

However, your payout may be subject to tax if your policy was bought through your superfund and the proceeds go to an adult who isn’t considered a ‘financial dependant’, even if they’re a family member. 

But the situation will be different for everyone, so it’s always worth checking with your policy provider to find out the details.