With all the new assets – and possibly people – in your life, you need to think about life insurance when you reach your mid-30s. Because you're still young and healthy, it's probably the best time to buy and lock in cheap premiums that will quickly disappear if you delay.
What are the types of life insurance for a 35-year-old?
If you're in your 30s, there are a few different types of life insurance tailored to your needs. They are:
Life insurance. Sometimes referred to as death cover, this is a policy that pays out if you die during the "term" of your cover. In other words, it only pays out if you die before the policy's expiry age, which is usually around 90 to 100 years old. In your 30s, you're likely to marry, have children and take out a mortgage. Term life insurance can provide financial protection for all these new assets.
Income protection. Another very important consideration you need to have in mind is your income. In your 20s, it's likely that you could have got by for a while without an income, but it's likely a different story by the time you're 35. If you needed to take some time off work due to injury or illness, could you still pay all your bills? Income protection can pay you a monthly benefit up to 85% of your income to make sure you still can.
TPD. Total and permanent disability insurance provides a lump sum payment if you are seriously injured or ill and become permanently disabled. As you begin to accumulate more in your 30s, TPD can be crucial if something bad happens, covering everything from medical bills and home modifications to paying the mortgage.
Top picks for life insurance in Australia
Top pick: Winner
NobleOak Life Insurance
Finder Award
$25 million sum insured
1st place in Finder Awards: 8.45 final score
Fully underwritten policy
Cheapest average policy price
Top pick: Finalist
TAL Accelerated Protection Life Insurance
Finder AwardBonus
Pays up to $5 million in TPD
2nd place in Finder Awards
Interim accident cover
$25,000 funeral advancement
Top pick: Finalist
RACWA Life Insurance
Pays up to $25 million
3rd place in Finder Awards
TPD and trauma options
$15,000 funeral advancement
We picked these policies after analysing the results from Finder's life insurance awards for 2023.
NobleOak Life Insurance: NobleOak's maximum payout for death or terminal illness is $25 million. Most providers offer cover limits of between $1 and 2.5 million. With NobleOak, you can add as much as $5 million in TPD cover – the most out of all 10 providers we analysed for the 2023 Finder Awards.
TAL Accelerated Protection: TAL's life insurance scored highly on price in the most recent Finder Awards. It was the second cheapest provider across 4 age groups – it also offers a comparatively strong policy. It pays $25,000 in funeral expenses and you have the option to add children's cover. It also offers flexibility by not setting a maximum benefit limit.
RAC Life Insurance: RAC life insurance is underwritten by NobleOak. This means it offers similar cover levels, high benefit limits (RAC goes up to $25 million) and quality add-ons. Our research team found NobleOak was more competitive than RAC on cost – by $75 per month on average (factoring in smokers and non-smokers).
Finder survey: What prompts Australians of different ages to take out life insurance?
Response
75+ yrs
65-74 yrs
55-64 yrs
45-54 yrs
35-44 yrs
25-34 yrs
18-24 yrs
Getting older (but not retiring)
3.45%
4.57%
5.81%
7.25%
4.06%
2.29%
Buying a home
1.72%
0.57%
5.23%
3.63%
10.15%
5.05%
2.06%
Getting married
1.72%
2.29%
5.23%
1.55%
5.58%
4.59%
1.03%
None of the above
1.72%
4.57%
7.56%
9.33%
7.11%
5.96%
4.12%
Starting my own business
1.72%
0.57%
0.58%
0.51%
0.92%
3.09%
Retirement
2.29%
2.91%
1.04%
2.03%
1.83%
2.06%
Having a baby
1.14%
3.49%
5.18%
11.68%
6.88%
4.12%
Buying a car
0.57%
0.52%
1.02%
0.46%
2.06%
Starting a new job
0.57%
2.91%
3.11%
2.54%
6.88%
5.15%
Your children moving out of home
0.57%
1.74%
0.46%
Moving home
1.02%
1.38%
2.06%
Starting university education
0.46%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
Is my superannuation life insurance enough?
Probably not. If you want enough to cover everything that you currently pay for and ensure that your family continues to enjoy the same lifestyle, then life insurance through super is likely to fall short. In most cases, it will only provide your beneficiaries with between $100,000 and $200,000, which is usually nowhere near enough. Considering that you've likely got a mortgage, school fees, car loans, healthcare and day-to-day expenses to pay, it's generally not enough for the average Australian.
Standalone life insurance, on the other hand, can cover you for more than $1,000,000, which is far closer to the amount your dependants would actually need when you die.
How much is life insurance for 35-year-olds?
Life insurance is usually very affordable for 35-year-olds, largely because you're still young and likely have little to no health issues. Factors such as your age, health, job and the amount you're applying for will be your insurer's main considerations when determining your premiums.
But let's talk averages. The longer you put it off, the more expensive taking out cover gets. See the full breakdown of weekly costs of life insurance for different ages and genders below.
Non-smoking female
Age
$200,000 policy
$500,000 policy
$1,000,000 policy
30
$3.06
$6.70
$12.46
40
$4.65
$9.58
$17.94
50
$9.92
$22.38
$41.24
60
$28.64
$65.09
$126.80
Non-smoking male
Age
$200,000 policy
$500,000 policy
$1,000,000 policy
30
$4.37
$9.59
$17.87
40
$5.55
$12.17
$22.85
50
$12.72
$28.76
$53.20
60
$44.18
$100.58
$193.13
We compiled life insurance quotes from 12 Finder partners. These are the average costs for a non-smoker with no medical conditions and earning a gross annual income of $80,000. Quotes researched as of March 2022.
How much life insurance do I need at age 35?
This depends entirely on your personal circumstances, but there are a few simple ways to work it out. Our life insurance calculator can give you an idea of how much you'll need but on average, around $1 to $1.5 million is generally what most people in their 30s need. This is because this is often a new stage in your life when your responsibilities and financial obligations increase.
As a gauge of how much you'll need, it's generally said that your life insurance cover is around 10 times the amount of your annual income. So if you earn $150,000 a year, you'll want to have around a $1.5 million payout.
You can also buy life insurance through an adviser. This will cost you a little more, but that's because they'll do all these bits for you and make sure that you've got cover for the right amount. If that's the way you want to go, you can find a broker here.
Compare life insurance from Australian brands
Why compare life insurance with Finder?
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We've done 100+ hours of policy research to help you understand what you're comparing.
What should I be taking into consideration?
When working out how much life insurance you need , make sure you consider everything on the following list:
Your mortgage and how much it would cost you to pay it off.
Debts you have, including your own tuition fees, car loans and credit cards.
School fees so that your child or children can continue to receive the same standard of education.
Health insurance and healthcare costs, taking family members' health needs into account.
Funeral costs, which usually range from around $4,000 to $15,000.
Everyday living expenses, from groceries to fuel and car insurance.
Pros and cons of life insurance at 35 years old
Still on the fence about whether life insurance at 35 is worth it? Check out the pros and cons:
Pros
Premiums are cheaper if you get a policy now. On average, you'll pay $14.26 a month for a $1 million policy at 35 and you can choose to stay the same forever. That goes up to a whopping $287.52 if you buy when you're 65.
You're covered if the worst happens. Nobody wants to think about it, especially when they're just starting a family and buying a home, but if you die, life insurance makes sure your loved ones can live the life you were building for them.
The benefit is tax-free. If your policy covers you for $1 million, that's exactly how much your family will get; the death benefit is tax-free.
You can adjust your policy. Just because you're getting it when you're young, doesn't mean you can't adapt or change your policy as your life changes. Life insurers are aware of this and make it very easy to upgrade or downgrade depending on your needs.
Cons
It's an added expense. You've probably got lots of other things on your plate to pay for. Life insurance is another expense, albeit an affordable one if you get in early. It really comes down to whether you're willing to risk it or wait until later when it's much more pricey.
A medical is often required. If you're young, fit and healthy, this will actually benefit you because you'll attract lower premiums. But if you have a pre-existing condition, you might have to pay more.
Are there any exclusions I need to be aware of?
If you've never had a life insurance policy before, then it's worth pointing out some common life insurance exclusions. They're not startling, but they're worth knowing:
Suicide. Insurers usually don't cover you for suicide for the first 13 months of buying a policy.
Illegal or criminal activity. Pretty obvious, but if you're injured or killed while taking part in something illegal, the insurer has the right to deny the claim.
Drug or alcohol use. You won't be covered for injury or death as a result of drug or alcohol use, unless prescribed by a doctor.
War or warlike activity. This may seem a little far-fetched for most, but still worth knowing you won't be covered for death due to civil unrest, riots or war.
Sport. This is really only an exclusion if you're consistently taking part in dangerous sports, activities or risky hobbies like skydiving. You could still be eligible for income protection though.
Bottom line
Your 30s are usually when you start making big decisions: starting a family, buying a home, getting married. With all these new financial responsibilities, you need to be prepared for the worst. Luckily, buying life insurance when you're in your 30s is one of the most affordable times to do it. It's something you'll need eventually and the longer you put it off, the more expensive it becomes.
Why you can trust Finder's life insurance experts
We're free
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
When you open a super fund, you'll usually automatically be given life insurance with it. You can cancel it if you like, as the premiums you pay from your super are essentially eating into your retirement fund, but you don't need to. It's perfectly acceptable to have more than one life insurance policy and you'll still get the maximum amount from both.
Yes, you're under no obligation to keep your life insurance policy if it's not working for you any more. If you do cancel though, you will probably forfeit the cheap premiums you were able to get in your 30s.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
Life insurance can be bought directly from an insurer. Learn about the benefits and a few watch outs you should be aware of.
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