Australia's top life insurance providers in 2022

Life cover

Lump sum

Also called death cover, provides payout upon the policyholder’s death

18 to 79

Total and permanent disability (TPD) insurance

Lump sum

Medical, rehabilitation, and living costs if policyholder becomes permanently disabled

18 to 64

Trauma insurance

Lump sum

Expenses incurred while recovering from a major illness

18 to 64

Income protection

Monthly benefit of up 75% of regular salary

Living expenses if the policyholder is unable to work due to illness or injury

18 to 64

Accidental death/injury cover

Lump sum or income protection

Provides payout in the event the policyholder dies unexpectedly or suffers an accidental injury

18 to 64

Funeral insurance

Lump sum

Up $30,000 coverage for funeral expenses

18 to 79

Terminal illness benefit

Depending on the insurance provider, this benefit pays out 100% of the death cover in advance if the policyholder is diagnosed with a terminal illness or given less than 12 to 24 months to live. Generally, the diagnosis needs to be confirmed by two independent medical specialists.

Funeral advancement benefit

This benefit ranges from $10,000 to 10% of the sum insured. To receive an advance payout, the policyholder’s family must provide the insurer a valid death certificate and full claim forms.

Financial advice benefit

For those who need to seek advice from a financial advisor, this benefit reimburses the cost up to a specific range which may vary between $2,000 and $5,000 depending on the insurance company.

Future insurability benefit

This allows the policyholder to increase their level of cover without the need to provide additional medical information. This can be done after a significant life event, including marriage, getting a new job, birth of a child, or taking out a mortgage.

Premium freeze option

This allows the policyholder to freeze their premiums, so instead of their stepped premiums increasing each year, their benefit amount will decrease.

Indexation

This benefit enables the policy to keep up with inflation. Typically, the level of cover rises by set percentage between 3% and 5%$ or the CPI, depending on which is greater.

Interim cover

This provides a lump-sum payment should the policyholder die because of an accident during their policy assessment. The benefit is usually the lesser of $1 million or the sum insured at the time of application.

Accelerated Protection

• Death benefit: Benefit amount is paid after the policyholder dies
• Terminal Illness benefit: Early payment of the benefit amount if policyholder is terminally ill
• Advanced payment benefit: Advanced payment of 10% of the benefit amount, up to a maximum of $25,000 as soon as death certificate or medical certificate confirming death is received
• Repatriation benefit: Advanced payment benefit capped at a maximum of $35,000 if policyholder dies overseas

Priority Protection Life Cover

• Death benefit: Pays a lump sum equal to the sum insured if policyholder passes away
• Terminal illness: Pays the sum insured in advance if policyholder is diagnosed with a terminal illness
• Final expenses: Advances 10% of the sum insured up to a maximum of $25,000 to assist in dealing with immediate financial expenses whilst AIA assesses a death claim
• Complimentary family final expenses: Pays the lower of $20,000 or 10% of the sum insured if a policyholder’s child passes away or is diagnosed with a terminal illness between the ages of 2 and 17
• Guaranteed future insurability: Allows policyholder to increase the sum insured for significant personal or business events before age 55, without providing further evidence of health or insurability
• Benefit indexation: Automatically increases the sum insured at the policy anniversary each year by the higher of the CPI increase and 5%, and adjusts premiums accordingly
• Premium freeze: Allows policyholder to keep their premium the same for the following year by reducing the sum insured amount
• Premium and cover pause benefit: Allows policyholders to pause premiums and cover for a period of 3, 6 or 12 months in certain circumstances for eligible policies
• Financial planning reimbursement: Pays up to $3,000 to reimburse financial planning advice obtained within 12 months of a claim payment across all policies
• Complimentary interim accidental death cover: Pays a lump sum in the event of accidental death occurring while the application is being assessed, applies for up to 90 days from the date of the signed application
• Accommodation benefit: Reimburses the accommodation costs incurred by immediate family members while policyholder is confined to a bed more than 100km from their usual place of residence (up to $250 per day for up to 30 days)
• Counselling benefit: Pays $200 for each session of grief counselling for the policyholder or immediate family member, up to a maximum total value of $1,200 per life insured

Wealth Protection Death Cover

• Death & terminal illness benefit: Lump sum payment on death or diagnosis of terminal illness
• Advancement for funeral expenses: Advance payment of $15,000 towards funeral expenses
• Accidental injury benefit: Advance payment of part or all of the death benefit if the life insured suffers a specified accidental injury
• Future insurability business benefit: Allows an increase in cover without underwriting if certain business events occur
• Inflation protection: Cover will increase every year even without health assessment, unless declined by the policyholder
• Future insurability: Allows an increase in cover without underwriting on certain life events
• Accommodation expenses: Reimbursement of some travel and accommodation expenses for an immediate family member who travels more than 100km from home to be with the life insured who is confined to bed and requires full-time care
• Financial planning advice: Reimburses the cost of advice following a claim payment, up to $3,000, benefit increases to $6,000 if death benefit has been in place for five years or more
• Interim cover: Puts some accident cover in place as soon as cover is applied for, as set out in the interim cover terms

MLC Insurance Life Cover

• Best doctors service: Provides access to some of the leading medical practitioners in the world
• Accidental injury benefit: Pays a lump sum benefit if policyholder is injured due to an accident, which results in the total and permanent loss of hands, feet, and eyes within 6 months of the accident
• Advance death benefit: Pays a benefit of $20,000 from the life cover lump sum to help loved ones pay for policyholder’s funeral
• Financial planning benefit: Reimburses part of the costs charged by a qualified financial adviser for financial planning services, if the lump sum benefit paid is $100,000 or more

Term Life Protection Plans

• Death benefit: Pays a benefit in the event of the insured person’s death
• Terminal illness benefit: Pays a benefit, equal to the amount of the death benefit at that time the insured person has a terminal illness
• Future insurability benefit: Allows policyholder to increase the death, TPD, and living benefit sum insured on the occurrence of one of the specified personal or business events without further medical underwriting

MetLife Protect

• Death benefit: Pays out 100% of the life cover amount upon the death of the life insured
• Terminal illness benefit: Pays out 100% of the life cover amount if a terminal illness is likely to result in death of the life insured within 24 months
• Immediate expenses benefit: Advances $30,000 of the life cover amount as an upfront payment as soon as death certificate is received
• Indexation: Increases the life cover amount by the greater of CPI and 5% unless policyholder opts out
• Involuntary unemployment premium waiver benefit: If the life insured loses their job due to involuntary unemployment, they can request premiums to be waived for up to three months while they are not working
• Life events increases feature: Allows the policyholder to apply to increase life cover amount without further medical underwriting in the event of specified personal life and business events
• Nomination of beneficiaries: Allows the policyholder to nominate up to five beneficiaries on a non-superannuation policy to receive the payment if a benefit is payable due to the life insured’s death.