Top 10 Life Insurance Companies in Australia

Top 10 Life Insurance Companies in Australia… Do you consider your life to be precious and important? Just like you protect your houses, cars, and other property, did you know that you can insure your life? Yes, you can…because there are many insurance companies out there just for you to ensure your precious life.

Now, you may be wondering: what is life insurance? But let’s start by defining insurance first.

Insurance is an agreement whereby a company or the state agrees to provide a guarantee of compensation for a specified loss, injury, illness, or death in return for the payment of a specified premium.

Life insurance is the type of insurance that pays a sum of money either upon the death of the insured person or after a fixed period.

You may ask again, why life insurance?? Or what is the need for that???

The main reason life insurance is important is the peace of mind you get. You can sleep easy knowing what life throws at you; You and your loved ones will be financially well off. In short, you pay the insurer for a good night’s sleep.

If you’ve decided you need life insurance but have no idea where to start, I’d love to help. I’ll start by showing you the factors to consider when choosing a life insurer in Australia.

Factors to consider before choosing a life insurer in Australia

The best life insurance company is the one that fits your needs and your budget while giving you the peace of mind that your family will be protected when you die.

There are many factors to consider before selecting a life insurer, such as the features and benefits they provide in their policy and the long-term and short-term affordability of their premiums. Others include:

1. GET A FULL WARRANTY:

By making sure the company you choose gives you peace of mind knowing your family will be able to live the life they’re used to or, if you’re not married, make sure your coverage is sufficient for mortgage repayments and other debts.

Also, consider life insurance that offers a funeral advance benefit, so your loved ones don’t have to worry about paying your final expenses.

2. KNOWING THE TERMS AND CONDITIONS:

The location of the best policy for you and your family should be determined by the terms and conditions of the company’s policy which you can refer to in their Product Disclosure Statements (PDS).

Direct insurer vs. retail insurer and group superfund offerings are very different, which is why it’s so important that you carefully read the product disclosure statement (PDS) for each policy you’re considering.

3. LIKELIHOOD OF CLAIMS BEING PAID:

Life insurance companies in Australia are regulated by the Australian Prudential Regulation Authority (APRA), which helps ensure that the insurer has the funds to meet its claims obligations.

However, according to the ASIC 498 report on life insurance claims, your claim has a 71 higher chance of being denied when purchased directly from the insurer (not recommended) compared to purchasing life insurance through a retail distribution channel (recommended).

4. TERMS AND CONDITIONS:

When finding the best policy for you and your family, you should consider the terms and conditions of the company’s policy which you can refer to in their Product Disclosure Statements (PDS). The offerings of a direct insurer versus a retail insurer and a group superfund are very different, which is why it is so important that you carefully read the product disclosure statement (PDS) of each policy you are considering.

5. LONG-TERM LIABILITY:

Make sure you’ll be able to pay your policy premiums now and in the future. If you’re looking for short-term affordability, a tiered premium style might be right for you. On the other hand, if you can start with higher premiums, which don’t increase each year because of your age, then a company that offers tiered premiums might be for you.

6. DISCOUNTS AND REWARDS:

You should consider companies that add even more value to their policyholders helping them save on premiums and encouraging them to live healthier lives. Although reward programs shouldn’t be the deciding factor when choosing a company, add a little something extra.

Top 10 insurance companies available in Australia.

1. ISA: Life Insurance

AIA Australia is a global life insurance company that has successfully combined its international presence with local expertise to offer some of the most comprehensive and flexible life insurance policies in Australia. The products provided by AIA are constantly reviewed to ensure that the changing needs of Australians are always fully met to protect the things that matter most to you.

2. AMP: Life Insurance

A trusted financial institution that has been serving Australians for over 160 years, AMP’s insurance team is committed to its clients and aims to process insurance claims quickly and efficiently. AMP products are used regularly to ensure that the insured person receives competitive coverage.

3. ASTERON: Life Insurance

This is the company that wrote the first life insurance policy in Australia and also made the first payment soon after. Today, Asteron Life is part of the ASX-listed Suncorp group and continues to be committed to helping customers stay healthy throughout their lives through the Asteron Life Wellbeing program.

4. BT: Life Insurance

This is the wealth management arm of the Westpac Group. Customers are licensed for any of BT’s wealth services, including life insurance products, from any Westpac or Westpac-affiliated bank branch. BT is passionate about its customers and the community at large, participating in community organizations such as Clean Up Australia Day, Earth Hour, and Australia’s largest morning tea.

5. CommInsure: Life Insurance

CommInsure is part of the Commonwealth Bank Group and although the name “Comminsure” was only established in 1999, its roots go back to 1873 with the founding of the Mutual Colonial Life Guarantee Society. CommInsure is proud to be one of the leading insurance providers in Australia with simple insurance solutions for its clients.

6. MACQUARIE (ZURICH)

Macquarie Bank has provided life insurance for clients since 1990 and, despite being a young operation, is backed by people with the experience and knowledge to make the operation a success. Macquarie is currently managed by Zurich Life Insurance.

7. MLC

MLC Life Insurance is the wealth and asset management arm of National Australia Bank (NAB), providing multiple financial services including superannuation, insurance, and investment solutions to Australians since 1886 under its original name “The Citizens”.

MLC’s goal is to continually improve its customer service with access to a variety of investment managers from around the world.

8. A WAY

Now owned by ANZ bank, OnePath was previously known as ING Australia. OnePath has operations in more than 32 countries and offers its products and services to more than 8 million customers. The passion for helping people protect is evident from the many awards that have been received, such as Money Management / DEXX & R.

9. SUCH

TAL is Australia’s life insurance specialist, offering easy-to-understand, obtain and claim life insurance to 2.5 million customers in Australia. Owned by one of the largest life insurance companies in the world, the Japanese company Daiichi Life, TAL won Life Insurance of the Year (Australian Banking and Finance Awards) for three consecutive years and many other awards.

10. ZURICH

Zurich Life Insurance is a Swiss company that is known to offer life insurance products in more than 170 countries around the world. It was established in 1872 in Zurich, Switzerland. It acquired the Commonwealth General Assurance Company (CGA) in 1961 and has provided excellent services and solutions to Australians over the years.

There are many frequently used terms here that you must have discovered. These terms are explained below to guide your understanding.

• THE INSURER (THE COMPANY ITSELF): This refers to the seller of the cover.
• THE INSURED (OR POLICYHOLDER): This term refers to the purchaser of the insurance.

The insurance premium: This refers to the cost of life insurance coverage, which represents the risk involved by the company.

Now that you know in detail what life insurance means, it’s up to you to make a decision but make sure you don’t put it off unnecessarily, as you never know what circumstances might be imposed on you.