Life insurance claims in 2025
New data from Australian Prudential Regulation Authority highlights a clear pattern in life insurance claims.
Clients who receive professional advice tend to achieve stronger outcomes, particularly for Total and Permanent Disability (TPD) cover.
Drawing on APRA’s latest Life Insurance Claims and Disputes Statistics, alongside guidance from Insurance Council of Australia and MoneySmart, the data reinforces the practical value of advice—not just when setting up cover, but when a claim is made.
TPD claims: higher success rates and larger payouts
TPD claims remain one of the most complex areas of life insurance—and the gap between advised and non-advised outcomes is significant.
Across 2025, outcomes show a clear advantage:
- 70% of advised TPD claims were paid, versus 53% for non-advised
- Average payout: $785,000 (advised) vs $312,000 (non-advised)
- Admittance rates: 82.3% (advised) vs 68.8% (non-advised)
Death claims: consistently high approval rates
Death cover remains the most commonly claimed type, with 4,462 claims reported. Approval rates are high overall:
- 97% of advised death claims paid
- 92.2% of non-advised claims paid
While the gap is narrower than for TPD, advised clients still experience more consistent outcomes.
Faster claims processing with advice
APRA data also shows that advised clients benefit from faster claim resolution.
For death claims:
- 96.8% finalised within six months (average 1.6 months)
- 74.2% completed within two months
For non-advised:
- 90.5% within six months (average 2.3 months)
- 61.3% within two months
For TPD claims:
- Advised: 61.7% finalised within six months (average 5.9 months)
- Non-advised: 54.1% within six months (average 7.4 months)
Fewer disputes where advice is involved
Dispute rates reinforce the same trend:
- TPD disputes: 6.5% (advised) vs 11.2% (non-advised)
- Death disputes: 2.1% (advised) vs 3.8% (non-advised)
Lower dispute rates suggest better alignment between policy structure, expectations and documentation—areas typically addressed during the advice process.
TAL data: scale and consistency of claims support
Insights from TAL provide additional context on how claims play out in practice. TAL reports paying $4.7 billion in claims to more than 54,000 customers in a single year, with 96% of claims assessed being accepted.
Notably, around 74% of claims paid relate to “living benefits”—including income protection and TPD—highlighting how frequently claims arise from illness or injury rather than death.
This aligns with APRA’s findings: the more complex the claim type (such as TPD), the greater the impact of advice on outcomes.
Why advice matters at claim time
Guidance from MoneySmart highlights the importance of understanding policy definitions, exclusions and evidence requirements before a claim is made. Industry commentary from Insurance Council of Australia similarly points to the role of appropriate cover selection and documentation.
The 2025 data brings this into focus. Advice is not just about choosing a policy—it directly influences claim success, payout size, processing time and the likelihood of dispute. For more complex covers like TPD, that difference can be material.
Contact Carrick Aland’s Wealth Planning team on 1300 466 998 or read more at Protecting Your Wealth »
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Sources:
Driscoll, A. 2026, Advised clients still enjoy best claim results: APRA, Independent Financial Adviser, 29 April, https://www.ifa.com.au/advised-clients-still-enjoy-best-claim-results-apra/
Australian Prudential Regulation Authority (APRA) 2026, Life Insurance Claims and Disputes Statistics: January to December 2025, APRA, Australia, https://www.apra.gov.au/life-insurance-claims-and-disputes-statistics
Insurance Council of Australia (ICA) 2025, Progressing continuous improvement in the insurance industry, ICA, Australia, https://insurancecouncil.com.au/resource/progressing-continuous-improvement-in-the-insurance-industry/
MoneySmart 2025, Making a life insurance claim, Australian Securities and Investments Commission, https://moneysmart.gov.au/how-life-insurance-works/making-a-life-insurance-claim
TAL 2025, Claims paid, TAL, Australia, https://www.tal.com.au/claims/claims-paid
