Cost of Life Insurance vs State (and Territory)

Will living in New South Wales mean you're charged more on life insurance than residents in Western Australia? Find out how stamp duty and taxes vary state by state.

How does each type of cover compare per state and territory?

StateTerm life coverTPDTrauma (standalone)Income protectionChild cover
New South Wales5%10%10%5%5%
Victoria5%10%10%10%5%
Queensland5%7.50%7.50%9%5%
Tasmania5%10%10%10%5%
South Australia1.50%11%11%11%1.50%
Northern Territory5%10%10%10%5%
Western Australia0%10%10%10%0%
Australian Capital Territory3%6%6%6%3%

Key factors that influence the cost of life insurance?

The more comprehensive and powerful your policy is, the more it will cost. It will also cost more or less depending on your:

  • Age. Older people are more at risk and so pay higher premiums.
  • Lifestyle and health. Smokers, people with pre-existing conditions and other poor health and lifestyle factors will generally incur increased costs, while good health can lower the price.
  • Occupation and pastimes. Dangerous jobs and hobbies carry a higher chance of death, injury and disability. Insurers charge loadings for these to compensate for the added chance of needing to pay out a claim.
  • Sex. Women and men have different risks which manifest themselves as higher and lower costs in insurance policies.
  • State or territory. Different states and territories will have a different stamp duty applied to the cost of life insurance premiums.

Stamp duty breakdown by individual state

Cover typeStamp dutyHow is it paid?
Term life cover5%Included the premium
TPD cover10%In addition to your premium
Trauma cover10%In addition to your premium
Income protection cover5%In addition to your premium
Child cover5%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover5%included in your premium
TPD cover10%In addition to your premium
Trauma cover10%In addition to your premium
Income protection10%In addition to your premium
Child cover5%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover5%included in your premium
TPD cover7.5%In addition to your premium
Trauma cover7.5%In addition to your premium
Income protection9%In addition to your premium
Child cover5%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover5%included in your premium
TPD cover10%In addition to your premium
Trauma cover10%In addition to your premium
Income protection10%In addition to your premium
Child cover5%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover1.5%included in your premium
TPD cover11%In addition to your premium
Trauma cover11%In addition to your premium
Income protection11%In addition to your premium
Child cover1.5%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover0%included in your premium
TPD cover10%In addition to your premium
Trauma cover10%In addition to your premium
Income protection10%In addition to your premium
Child cover0%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover3%included in your premium
TPD cover6%In addition to your premium
Trauma cover6%In addition to your premium
Income protection6%In addition to your premium
Child cover3%included in your premium
Cover typeStamp dutyHow is it paid?
Term life cover5%included in your premium
TPD cover10%In addition to your premium
Trauma cover10%In addition to your premium
Income protection10%In addition to your premium
Child cover5%included in your premium

Compare life insurance from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$1,500,000
65
$3,000
No
80
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.

$15,000,000
69
$0
Yes
99
Protect your family with NobleOak’s Life Insurance cover. Plus, pay no premium for 2 months with combined cover. T&C’s apply.
$1,500,000
65
$100,000
Yes
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. Ends 31 March 2019.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Go into the draw to win (1 of 10) $1,000 eftpos gift cards when you get a quote for Medibank Life Insurance. T’s and C’s apply.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.
$2,000,000
74
$100,000
Yes
99
Join Qantas Life Insurance and earn up to 150,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$1,000,000
65
$100,000
No
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.

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Maurice Thach

An insurance researcher and writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?" Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146. This means he can confidently provide general advice for life insurance and non-life insurance products.

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