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Compare $500,000 life insurance policies
A $500,000 life insurance policy on average costs between $30-$40 per month for a 30-year-old non smoker. .
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If you earn between $50,000 and $100,000 a year, a $500,000 life insurance policy might be the right amount for you. Beginning at around $20 a month, it can also be very affordable if you're able to lock in at those premiums now.
Can I get a $500,000 life insurance policy?
Yes. A $500,000 life insurance policy is one of the most common levels of cover to take out. That's because it's generally recommended that your life insurance benefit should be about 5 to 10 times your annual salary, meaning it's often suitable for people earning between $50,000 and $100,000 a year – the average Aussie income is around $80,000 a year
If you're earning anywhere between these amounts, a $500,000 life insurance policy could be enough to cover all your debts and expenses as well as enough to leave something behind for your loved ones. It all depends on your personal circumstances. For a more thorough estimate, you can use our life insurance calculator.
How much does a $500,000 life insurance policy cost?
A $500,000 life insurance policy can start at $20 a month – a very affordable amount considering it ends with a half a million dollar payout.
But there's no one fixed premium price for all. Life insurance prices differ depending on each person's individual circumstances. If you're young, healthy and a non-smoker, you're likely to pay less than if you're older, a smoker and have any pre-existing health conditions. The prices of your premiums are impacted by the following:
- Your age
- Your gender
- Your health
- Your lifestyle
- Your occupation
- Your hobbies
- The length of your policy
We ran quotes from 8 direct insurance brands in Australia to see the average price of life insurance for a $500,000 policy.
Keep in mind
These quotes do not take into account your own personal circumstances and prices may vary.Average cost of a $500,000 life insurance policy by age
| Age | Men | Women |
|---|---|---|
| 30 | $40.82 | $30.94 |
| 40 | $50.96 | $38.78 |
| 50 | $120.96 | $92.87 |
| 60 | $432.63 | $277.29 |
| 70 | $1,091.95 | $648.94 |
Cost of a $500,000 life insurance policy for men in Australia
| Brand | 30 | 40 | 50 | 60 | 70 |
|---|---|---|---|---|---|
 | $35.02 | $43.28 | $99.03 | $349.44 | Only covers 500k up to age 60 |
 | $42.32 | $63.24 | $125.55 | $448.26 | Only covers 500k up to age 65 |
 | $42.96 | $54.74 | $129.82 | $418.66 | $1,533.74 |
 | $23.11 | $27.37 | $74.20 | $282.20 | Max entry age is 69 |
 | $32.05 | $40.02 | $117.50 | $462.93 | $1,042.19 |
 | $38.07 | $47.55 | $139.60 | $550.06 | $1,238.35 |
Cost of a $500,000 life insurance policy for women in Australia
| Brand | 30 | 40 | 50 | 60 | 70 |
|---|---|---|---|---|---|
| $27.05 | $34.30 | $71.01 | $213.85 | Only covers 500k up to age 60 |
| $29.30 | $50.22 | $109.28 | $294.81 | Only covers 500k up to age 65 |
| $32.86 | $42.50 | $93.60 | $267.32 | $685.74 |
| $15.20 | $19.46 | $55.34 | $184.89 | Max entry age is 69 |
| $22.44 | $23.97 | $86.00 | $304.11 | $619.91 |
| $26.67 | $36.26 | $102.24 | $361.35 | $736.59 |
*Quotes are based on a non-smoker living in NSW. All prices were last checked March 2021.
Advantages of a $500,000 life insurance policy
Some reasons a $500,000 life insurance policy may be ideal for you.
- It's affordable. Starting at around $20 a month, a $500,000 life insurance policy is cheap enough that you'll barely notice it going out of your bank account. The sooner you can lock in on affordable premiums, the better.
- It may be enough to pay off all your debts. A $500,000 policy is usually considered to be the minimum benefit you want for a life insurance payout. That's because it needs to pay off things like your mortgage, any loans you have and provide the people you leave behind with enough to enjoy their current standard of life. It all depends on your personal circumstances, but for the average Australian, $500,000 may be enough to cover all of this.
- Peace of mind. Life insurance can provide the ultimate peace of mind. It's nice to know that even if the worst happens, you're still able to support your loved ones financially and won't be leaving them with any financial burdens.
- Life insurance is flexible. $500,000 may seem like the right amount now, but as you get older, you may find that you need more (or less). If that's the case, you can easily get in touch with your provider and increase or decrease your cover amount.
Compare $500,000 life insurance quotes
Other options available with life insurance
When you decide to take out life insurance, you have a couple of different options available:
- Buy direct. Direct life insurance is purchased directly from an insurer as opposed to buying through an adviser or broker. Buying direct is usually cheaper and generally only requires a limited level of medical underwriting, but you do risk being underinsured. If you're confident that a $500,000 policy is right for you though, then this may be your best option.
- Buy through an adviser. An adviser can help determine exactly how much life insurance you need with expert advice tailored to your specific situation. Their service is free and they're paid out of the insurer's pocket, not yours.
Bottom line
Life insurance isn't a one-size-fits-all option, so you'll need to spend a little time working out how much you need. If you earn around $50,000 a year though, a $500,000 policy might be the right amount for you. Begin comparing life insurance options here.
Frequently asked questions
Is $500,000 enough life insurance?
It depends on your personal circumstances, so you'll need to do a little maths and take into consideration the following:
- Income
- Your dependents
- School fees and expenses
- Existing debt including mortgage
- End-of-life expenses
- Savings
Who gets my life insurance payout?
The person or persons you nominate as your beneficiary when you take out a policy will get the payout. You can change this whenever you want by getting in touch with your insurer.
Can I have more than one life insurance policy?
Yes and in some cases, it makes a lot of sense. For instance, when you begin receiving superannuation, in most cases you automatically get life insurance through your super. But the payout for this is generally not enough to cover all your expenses – it's often around $100,000 – so a standalone $500,000 policy may be just what you need to cover everything. You can also take out life insurance that pays out if you become permanently disabled or critically ill.
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