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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.
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.
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:
We ran quotes from 8 direct insurance brands in Australia to see the average price of life insurance for a $500,000 policy.
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 |
*Quotes are based on a non-smoker living in NSW. All prices were last checked January 2021.
Some reasons a $500,000 life insurance policy may be ideal for you.
When you decide to take out life insurance, you have a couple of different options available:
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.
It depends on your personal circumstances, so you'll need to do a little maths and take into consideration the following:
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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