Top 10 Life Insurance Companies in Australia 2020 – Latest Update.
Life Insurance Companies in Australia 2020… Do you see your life to be precious and important? Just like you secure your houses, cars, and other properties, do you know that you can secure your life? Yes, you can…for there are plenty of insurance companies available just for you to secure your precious life.
Life Insurance Companies in Australia
Now, you may ask: what is life insurance? But let’s start first by defining insurance
Insurance is an arrangement by which a company or the state undertakes to render a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
Life insurance is the kind of insurance that pays out a sum of money either on the death of the insured person or after a fixed period.
You may ask again, why life insurance? Or what’s the need for that?
The ultimate reason why life insurance is important is the peace of mind obtained. You can sleep easy knowing whatever life throws at you; you and your loved ones will be financially ok. In short, you’re paying the insurer for a good night’s kip.
If you’ve decided that you do need life insurance but don’t have a clue on where to start, I’d love to help you. I’ll begin by showing you the factors you have 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 suits your needs and fits your budget while providing you with peace of mind that your family will be protected when you die.
There are numerous factors to consider before selecting a life insurer, like the features and benefits they provide in their policy and the long and short-term affordability of their premiums. Others include:
1. OBTAINING FULL ASSURANCE:
By making sure that the company you choose offers you peace of mind knowing that your family will be able to live the life they are accustomed to, or if you’re not married, make sure your cover is enough for mortgage repayments and other debts.
Also, consider life insurance that offers a funeral advancement benefit, so that your loved ones won’t need to worry about paying for your final expenses.
2. KNOWING THE TERMS AND CONDITIONS:
Locating the best policy for you and your family should be determined by the company’s policy offering terms and conditions which you can read up on in their Product Disclosure Statements (PDS).
The offerings from direct insurer versus a retail insurer and a group super fund are very different, which is why it’s so important that you carefully read through the product disclosure statement (PDS) of each policy you are considering.
3. LIKELIHOOD OF CLAIMS BEING PAID:
Life insurance companies in Australia are regulated by the Australian Prudential Regulation Authority (APRA), which aids to ensure that the insurer will have the funds to meet their claims obligations.
However, according to the ASIC 498 report into life insurance claims, your claim has a 71% higher chance of being declined when bought directly from the insurer (not- Advised) compared to buying life insurance through a Retail (Advised) distribution channel.
4. TERMS AND CONDITIONS:
Finding the best policy for you and your family, you should consider the company’s policy offering terms and conditions which you can read up on in their Product Disclosure Statements (PDS). The offerings from direct insurer vs. a retail insurer and a group super fund are very different, which is why it’s so important that you carefully read through the product disclosure statement (PDS) of each policy you are considering.
5. LONG-TERM AFFORDABILITY:
Make sure that you’ll be able to afford the policy premiums now and in the future. If you are looking for short-term affordability, a stepped premium style might be suitable for you. On the other hand, if you’re able to start off with higher premiums, which do not increase every year due to your age, then a company offering level premiums might be for you.
6. DISCOUNTS AND REWARDS:
You have to consider companies that add even more value to their policyholders by helping them save on their premiums and encourage them to live healthier lives. Although reward programs should not be the deciding factor when choosing a company, it does add something extra.
Top 10 Life Insurance Companies Available in Australia.
1. AIA:
AIA Australia is a global life insurance company that has successfully combined its international presence with local expertise to give some of Australia’s most comprehensive and flexible life insurance policies. Products rendered by AIA are constantly under review to ensure that the changing needs to Australians are always fully met in order to protect the things that matter to you the most.
2. AMP:
This is a trustworthy financial institution that has been assisting Australians for over 160 years, the AMP Insurance team is committed to their customers and aim to process insurance claims quickly and efficiently. AMP’s products are gone through on a regular basis to ensure that the insured person receives competitive cover.
3. ASTERON:
This is the company that wrote the first life insurance policy in Australia and also made the first payout not long after. Today, Asteron Life is a part of the ASX listed Suncorp Group and remains committed to helping customers get and stay healthy for life through the Asteron Life Wellbeing Program.
4. BT:
This is the wealth management arm of Westpac Group. Customers have a license to 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 wider community, involving itself in community organizations such as Clean Up Australia Day, Earth Hour and Australia’s Biggest Morning Tea.
5. COMMINSURE:
Comminsure is a part of the Commonwealth Bank Group and though the name “Comminsure” was only established in 1999, its roots can be traced back to 1873 with the foundation of Colonial Mutual Life Assurance Society. Comminsure prides itself on being one of the top insurance providers in Australia with straightforward insurance solutions for its clients.
6. MACQUARIE (ZURICH):
Macquarie Bank has rendered Life Insurance for customers since 1990, and despite being a young operation, it is supported by people with the experience and expertise to make the operation a success. Macquarie is currently managed by Zurich Life Insurance.
7. MLC:
MLC Life Insurance is the asset and wealth management arm of the National Australia Bank (NAB), rendering multiple financial services such as superannuation, insurance and investment solutions to Australians since 1886 under its original name “The Citizens”.
MLC’s goal is to continuously improve its customer service support with access to a diversity of investment managers from around the world.
8. ONE PATH:
Now owned by ANZ bank, OnePath was previously known as ING Australia. OnePath has operations in over 32 countries and gives its products and services to more than 8 million customers. A passion to assist people to protect is evident from the numerous awards that have been received such as Money Management/DEXX&R.
9. TAL:
TAL is Australia’s Life insurance specialist, are offering easy to understand, easy to get and easy to claim life insurance to 2.5 million customers in Australia. Owned by one of the world’s largest Life insurance companies, Japan’s Dai-ichi Life, TAL has won Life Insurer of the Year (Australian Banking and Finance Awards) for three years in a row, and many other awards.
10. ZURICH:
Zurich Life Insurance is a Swiss company that has been known to be providing life insurance products in more than 170 countries all over 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 lots of terms here frequently used which 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 buyer of the insurance.
The Insurance Premium: This refers to the cost of Life Insurance cover, representing the risk involved to the company.
Now that you’ve known in details what life insurance means, it is up to you to make your decision but make sure you don’t put your decision off unnecessarily as you never know what circumstances could be bestowed upon you.
NG Team.
