You pay the same price as buying directly from the life insurer.
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We've done 100+ hours of policy research to help you understand what you're comparing.
We put every effort into ensuring information on Finder is accurate. This article was reviewed by Karen Eley from our Editorial Review Board as part of our fact checking process.
Life insurance pays a lump sum of money when you die or become terminally ill.
You can select how much you want to receive. Options typically range from $100,000 to $25 million.
The money is paid out to the people you nominate as the beneficiaries when you take out a policy. This means, if you die, your loved ones will still be able to afford mortgage payments, ongoing bills and other living expenses.
A $500,000 life insurance policy costs an average of $35 per month for non-smoking 30- and 40-year-olds, according to our 2023 Finder Awards research.
To get this price, we gathered 40 quotes from 13 brands including TAL, NobleOak and Zurich for 30- and 40-year-olds (20 males and 20 females) applying for a life insurance policy. The payout selected was $500,000. They had no pre-existing conditions and did not smoke.
Actual quotes will vary depending on your personal circumstances. The cost of life insurance depends on your age, health, occupation and the benefit amount you select – for example, a $500,000 policy will cost less than a $1 million life insurance policy.
NobleOak's life insurance policy won this year's Finder Award. It won because it was cheaper than 8 of the 10 insurers we researched and covers more than most. For example, it can pay out up to $25 million if you die or are diagnosed with a terminal illness – most policies have a $1.5 million cap.
TPD covers you if you get severely injured or sick. For example, if you become blind or paralysed after a car accident and become permanently disabled.
Typical cover range: $50,000 to $5 million.
Trauma cover, sometimes called critical illness cover, is a policy add-on that pays a lump sum if you're diagnosed with a major medical condition, such as cancer or a heart attack.
Typical cover range: $500,000 to $2 million.
Income protection insurance pays a monthly benefit if you're unable to work due to illness or injury. Usually, it will only pay up to 70% or 75% of your typical wage for a period of 2 or 5 years.
I've never really thought about my life insurance, but after having a baby and buying a house in the same year I felt now was the time I needed to take out cover. Having a policy that would cover my mortgage payments is one less thing I now need to worry about.— Alex Holderness, Finder's head of publishing, parent and homeowner
Our life insurance guides can help you compare and understand what cover option is right for you.
What is life insurance?
Discover the ins and outs of life insurance, from how it works to why it's so important for many families.
How much life insurance do I need?
Work out how much life insurance you need with our quick quiz.
How to make a life insurance claim
3 simple steps to make the claims process go more smoothly during a difficult time.
Stepped vs level premiums: What's the difference?
Stepped premiums increase as you age, level premiums don't — but the latter is pricier to start with.
As a general guide, life insurance should cover at least the total of your home mortgage and, if you have children, 5–10 times your salary.
Brenton Tong
Financial planner
People tend to underestimate the importance of life cover. With the right policy in place, your family's finances and wellbeing can be protected for decades. One feature I always tell people not to overlook is TPD cover. It isn't automatically included in a policy.
James Martin
Finder's life insurance editor
No one is ever really prepared for life's harsh surprises, but insurance can help soften the blow... Life insurance is about protecting what matters most. That's the people around you, rather than just material possessions like cars or boats.
Phil Thompson
Financial adviser at Skye Wealth
When I moved to Australia, I cancelled the life insurance in my super. For me, the payout wasn't big enough. A standalone life insurance policy, outside of super, typically pays out much more and won't eat into your retirement savings.
Gary Ross Hunter
Finder's insurance and innovations editor
If (like me) you don't don't have children or anyone who would be left in the lurch financially if you died, you might not need death cover. I have TPD and income protection instead. If I ever need to claim, that money could help with the cost of ongoing medical expenses, fitting my home with any necessary disability equipment and just the general cost of living.
Nicola Middlemiss
Insurance specialist
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