Life Insurance Prices

Information verified correct on October 1st, 2016

Looking for Life Insurance? Compare Life Insurance Prices and Find the Right Policy

Most Australians don’t think twice about purchasing a car insurance. But when it comes to protecting themselves against unexpected illness or even death, Australians are dangerously underinsured. Common excuses for not taking out life insurance include complains about life insurance prices being too expensive, that it’s hard to get or it only covers death.

Life insurance is more than just a single wad of cash in the event of your death. Rather, life insurance is exactly what it sounds like – insurance to help you get through life’s tough times. Whether that be providing regular payments in the case of disability, protecting your income or making sure that you’ll have all the support you need to continue your current lifestyle after a stroke, it’s an affordable and logical way to safeguard yourself and your family against all that life may throw at you.

Tips for Comparing Life Insurance Prices

Convinced on life insurance but not sure how to compare life insurance prices in Australia and end up with the best one?

With such an important decision such as life insurance, it’s important to do your research and compare the different life insurance prices available. Just like other products you may buy for yourself, looking for the best suitable match according to your needs is a much better way to shop for life insurance than to just blindly pick out the most expensive one.

The best way to compare life insurance prices is to request quotes. Quotes are provided by insurance companies as a rough estimate of how much your policy would cost, according to the information you provide them. Remember to give exactly the same information to each life insurance company for accurate life insurance quotes.

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Average Life Insurances Prices

Life insurance Prices vary from insurer to insurer. There are certain lifestyle factors that effect life insurance prices that are common to all insurers such as smoking status, weight, family history and drinking habits. The table below is a rough average of life insurance prices that you can use a guide when you start comparing life insurance premiums.

Cover TypeLife Insurance
AgeSalaryMale*Female*
25$40,000$32$44
25$60,000$43$60
25$80,000$52$74
35$60,000$51$73
35$80,000$62$90
35$100,000$76$111
45$80,000$113$166
45$100,000$139$205
45$120,000$166$245

*Monthly Premium

The data displayed in the table above should only be used as a rough guide. The data in not from one insurer but is an aggregate of many insurers. Quotes will differ depending on your situation.

Find out more about the average cost of life insurance

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What are the Different Ways to Buy Life Insurance?

Once you have compared the quotes and life insurance prices, the details of the cover and the duration of your life insurance, there are three main ways to buy life insurance products:

  • Directly from an insurer. It’s usually the fastest method because your policy is likely to be more simple and the underwriting timeframe will be quicker.
  • Through an adviser. If you purchase your life insurance through an adviser, you’ll be able to receive professional advice about which policy will suit your needs best and avoid the risk of underinsurance. However, this process will take longer as your more comprehensive life insurance product will take longer to be assessed and approved by the underwriting team.
  • Through your superannuation fund. Life insurance prices are built into most superannuation policies, meaning that there will be no financial impact to you in the short run. However, the types of policies and their conditions are usually limited. If you choose to purchase life insurance through your superannuation fund, be sure to have a binding nomination as your life insurance benefit payment may not end up being paid to your preferred beneficiary upon your death.

Whichever way you choose to go about it, life insurance is a commitment worth doing your homework for and the key to providing your most loved ones with an invaluable peace of mind.

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What are the Different Types of Life Insurance?

Although many Australians assume that only one type of life insurance exists, which covers you in the event of your death, there are actually several different types of protection available when it comes to life insurance. These include:

  • Life insurance. Life insurance is the most common type of life insurance that people know about and pays a lump sum upon your death or diagnosis of a terminal illness.
  • Income protection insurance. If you are unable to work because of an illness or injury, income protection insurance provides a benefit of up to 75% of your salary. It is designed to allow you to focus on your treatments and getting better.
  • Trauma insurance. Trauma insurance is designed to give you financial support if you suffer or are diagnosed with a medical trauma such as a stroke, heart attack or cancer so that you can have flexibility in your lifestyle when you need it most.
  • Total and permanent disability (TPD) insurance. If you have an accident, become permanently disabled and are no longer able to work at all, you’ll be glad to have thought ahead with a total and permanent disability insurance which will offer you a lump sum. This could be used to pay off debts, cover medical costs or to invest. Being involved in an accident that leaves you permanently disabled is traumatising enough already, so being prepared financially is key.
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How Much Life Cover Do I Need?

One of the top questions asked about life insurance is ‘how much cover do I need?’

While there’s no magical formula to figure out the perfect amount of life insurance you’ll need, it all boils down to you and your family’s situation and lifestyle needs.

Start by thinking about any ongoing debt or payments you have to meet. Do you have a mortgage on your house? What about any other personal loans? Add to that any immediate costs your family will need such as funeral expenses which can often run higher than $5,000, as well as your everyday living expenses such as the rent, bills, groceries, petrol and children’s education.

Once you’ve got that ballpark figure in mind, you can calculate the difference between what you currently have in your savings and investments and how much you would ideally need to continue to care for your family, even when you’re no longer around.

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How to Get the Best Value Life Insurance Prices

Regardless of the level of life insurance cover you choose, here are some tips to get the best value out of your life insurance prices:

  • Get enough cover. This sounds like a no brainer, but it is essential to avoid underinsurance. It may be tempting to purchase the cheapest life insurance policy on the market, but the slight difference in premiums will more than make up for themselves if you have to claim your life insurance benefit payment.
  • Buy young. Because your profile is taken into account when determining the premiums, the younger you are, the cheaper your premiums will be. Take advantage of your good health and get your cover early.
  • Stop smoking. One of the first questions asked when purchasing your life insurance is ‘Do you smoke?’ Smokers are given much life insurance prices, so quitting may be in your favour.
  • Read the full product disclosure statement (PDS). The PDS and all included fine print will tell you everything there is to know about your policy and premiums, including any exclusions that may be in place. The saying ‘better safe than sorry’ couldn’t be any more true in this case.
  • Review your policy periodically. By contacting your insurer and keeping them up to date on any of your medical, financial or lifestyle changes, you’ll always be covered and avoid any nasty surprises later.
  • Take that medical assessment. While it may seem bothersome if your insurer asks you to get a medical assessment in order to qualify for their life insurance policy, a life insurance policy that accepts you without a medical assessment will often have a higher premium.
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Compare Life Insurance Prices

Life insurance doesn’t have to be hard or expensive – just follow finder.com.au’s tips on finding your best life insurance prices and life insurance quotes and finally cross off ‘life insurance’ from your family’s to-do list today.

Compare Life Insurance or Income Protection Quotes

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Compare Life insurance quotes from these direct brands

Details Features
Life Insurance
Life Insurance
Choice of cover options and flexible premiums to suit budget. No lock-in contracts and fast application.
  • Benefit payment of up to $1,500,000
  • Cover for applicants up to age of 65
  • 30 day cooling-off period
Go to site More info
Term Life Insurance
Term Life Insurance
Receive up to $1,500,000 in life cover and pay nothing for the first month. 10% Multi-life discount available.
  • Lump sum cover from $50,000 - $1,500,000
  • $15,000 Cash advance benefit
  • 10% Multi-life discount
Go to site More info
Term Life Insurance
Term Life Insurance
Save 25% on NobleOak life insurance and pay no premium for your first month.
  • Benefit of up to $1,500,000
  • Available for applicants up to 69 years old
  • 21 day cooling off period
Go to site More info
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