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

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Compare life insurance from these direct brands

Rates last updated November 20th, 2017
Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
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Receive a discount of 10% on life insurance as a Woolworths Rewards Member. T's and C's apply.
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$50,000
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Get flexible life insurance up to the sum of $2,000,000.
$1,000,000
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Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
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A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.

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Maurice Thach

An insurance-savvy writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?"

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