Canstar has rated Allianz, Real Insurance and Zurich as the top three direct life insurers, and says the product is increasingly popular because companies that offer it  are less likely to exclude customers.

Canstar Research Manager Chris Groth says consumers find the product easy to apply for and often know immediately if they have been accepted.

“The idea of applying online or over the phone really appeals to people who are time-poor, work irregular hours or live in remote locations, particularly when you can add trauma and total and permanent disability cover on the same application,” he said.

Mr Groth says the growth of direct cover is helping to address underinsurance.

“When direct life insurance first appeared on the market, it was pretty much a black and white product,” he said. “If you ticked all the boxes you got cover but if you put a cross in just one, you were excluded.”

There is now a more realistic approach, he says, and insurers are more willing to refer potential customers to underwriters, rather than knocking them back because of their occupation or a pre-existing condition.

Mr Groth says Allianz, Real and Zurich rate well because they are strong “in the things that matter – the suite of features covered, reasonable premium costs and ease of eligibility for the majority of consumers”.

Allianz has won the award every year since Canstar began researching the sector in 2009, while Real Insurance has featured among the top companies for the past three years.