We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Life insurance isn’t just for working women. All women can benefit from the peace of mind that a policy can provide. That’s why you need to consider life insurance. It can help pay off the mortgage and other debts, cover funeral costs and provide your family with enough money to continue enjoying the standard of life you’ve created for them.
Should women take out life insurance?
Yes. Women should consider taking out life insurance. Whether you’re the main breadwinner or a stay at home parent, you have a lot of financial responsibilities and people relying on you; something life insurance can take care of when you die. You might consider life insurance if you are:
Working
Life insurance can function as income replacement if you die while you’re still working. If you work and have people depending on your income, even if it’s not full-time, it’s particularly important. A policy can pay off debts like your mortgage and car loan, as well as ensure that your family can enjoy the same standard of living if you’re no longer there to pay for things like tuition fees, utilities and food.
A single parent
If you’re a single mum, life insurance can ensure you’re still able to support your child financially. You can even tailor your policy so that your child is able to receive payments in increments over a number of years, rather than as one lump sum payment.
A stay at home parent
If you’re a stay at home parent and you die, your partner would need to hire someone to do all the essential day to day duties you currently do, including child care, housekeeping and transportation. So that they don’t need to reduce their working hours, impacting their income, you need to think about getting a life insurance policy to cover the costs of all these essential household duties.
Single
Even if you don’t have others depending on you, if you die, any debt you leave behind will be passed on to your family. To avoid burdening them with your finances during a particularly difficult time, you can take out a life insurance policy. It’s also a good idea to take it out when you’re younger as you can take advantage of cheap premiums.
A business owner
If you own your own business, a life insurance policy can be used to pay for payroll, operating costs and more while your estate is being settled and ensure your business stays afloat.
Compare life insurance options
How much does life insurance cost for women?
Women tend to pay less than men for life insurance, largely because they have a longer life expectancy and are less of a risk to insurers. The cost of life insurance depends on factors including age, sex, health, smoking status and your job. The table below gives you an idea of how much you’re likely to pay.
| Female 25 | Female 30 | Female 35 | Female 40 | Female 45 | Female 50 | Female 55 | Female 60 | Female 65 | |
|---|---|---|---|---|---|---|---|---|---|
| HBF | $27.69 | $27.05 | $28.40 | $34.30 | $45.87 | $71.01 | $129.13 | $213.85 | $393.43 |
| Insuranceline | $34.88 | $30.69 | $35.81 | $53.01 | $76.73 | $114.86 | $176.24 | $310.16 | $554.28 |
| Medibank | $31.74 | $32.86 | $37.14 | $42.50 | $58.52 | $93.60 | $155.26 | $267.32 | $444.74 |
| NobleOak | $15.20 | $15.20 | $17.03 | $19.46 | $31.63 | $55.34 | $99.74 | $184.89 | $318.08 |
| TAL | $22.12 | $22.44 | $23.97 | $30.52 | $47.45 | $86.05 | $156.53 | $304.11 | $357.94 |
| AHM | $30.16 | $31.22 | $35.30 | $40.38 | $55.60 | 88.92 | $147.50 | $253.96 | $422.50 |
| Zurich Ezicover | $27.69 | $27.05 | $28.40 | $34.30 | $45.87 | $71.01 | $129.13 | $213.85 | $393.43 |
| AAMI | $34.88 | $30.69 | $35.81 | $53.01 | $76.73 | $114.86 | $176.24 | $310.16 | $554.28 |
| Suncorp | $34.88 | $30.69 | $35.81 | $53.01 | $76.73 | $114.86 | $176.24 | $310.16 | $554.28 |
| AVERAGE (Monthly) | $28.34 | $28.01 | $30.85 | $40.05 | $57.24 | $90.06 | $149.56 | $263.16 | $443.66 |
| AVERAGE (Weekly) | $7.09 | $7.00 | $7.71 | $10.01 | $14.31 | $22.52 | $37.39 | $65.79 | $110.92 |
*Based on a white-collar worker, non-smoker, living in 2000 NSW, with an income of $100,000 per annum and a $500,000 policy. Prices checked July 2021.
What are the advantages of life insurance for women?
Some of the pros of life insurance for women include:
- Financial security for your family. Whether you're the primary breadwinner or a stay at home mum, life insurance can safeguard you and your family's future if you're no longer there to look after them.
- Terminal illness benefit. Many policies will pay out the full benefit amount if you are diagnosed with a terminal or critical illness, helping you pay for medical bills and living expenses.
- It's generally cheaper for women. Women tend to pay less than men. For example, a policy with HBF for a non-smoking 25-year-old male was $40.50 compared to $27.69 for a female.
- Life insurance is usually tax-free. Life insurance payouts to your beneficiaries are usually tax-free, meaning if you take out a $1 million dollar policy, that's exactly how much your family will get.
Are there disadvantages of life insurance for women?
Here are some of the cons of a life insurance policy for women.
- It's an added expense. You probably already have lots of bills to worry about and a monthly life insurance payment is simply adding to the pile. The question really comes down to whether you're willing to risk it.
- You need to take some time to look for a policy. It's not the most fun task, but it is necessary to shop around if you do plan to buy.
What types of insurance should women look at getting?
Because there is more than one life-changing thing that can happen to you, there's more than one life insurance type out there. These include:
- Life Insurance. This pays your beneficiaries (generally your family) a lump sum when you die or become terminally ill. It's usually used to pay off the big things: your mortgage, car loan, school fees, and acts like an income you can no longer provide to pay for things like utilities, food and household duties if you're a stay at home parent.
- TPD (Total and Permanent Disability). This pays you a lump sum if you become totally and permanently disabled and can't work again. It's essentially like getting your retirement payment early so you can continue to pay off debts, loans and daily expenses.
- Income Protection Insurance. If you become sick or injured and need to take some time off work, this pays you a monthly income, usually at 75% of your current salary.
- Trauma Insurance. This pays you a lump sum if you're diagnosed with a critical illness or injury. It's helpful to pay for immediate medical expenses, home modifications, rehab and more.
Bottom line
Whether you're the main breadwinner or a stay at home parent, life insurance can provide financial security and peace of mind. You can begin comparing policies here.
Frequently asked questions
More guides on Finder
-
How much TPD insurance should I have?
Find out what exactly TPD insurance covers and how to determine an appropriate level of cover to give adequate protection in the event of disablement.
-
Big income protection changes just 2 weeks away: What you must do now
A number of major income protection changes are taking place on 1 October – here's how the new rules impact you.
-
Thinking of making a TPD claim? Learn the 5 key steps to take
If you need to make a claim on your TPD insurance, follow these steps to ensure you have the best chance of making a successful claim.
-
Cancer health insurance in Australia
Health insurance for cancer improves on what Medicare covers by giving you more control and quicker treatment.
-
Junk insurance: Are you due a refund? (and how to claim money back)
Class actions are currently underway against CBA, Westpac, Allianz and MTA – here's how to find out if you're eligible to claim any money back.
-
Debt on arrival: Cost of childbirth exceeds $5,000 for 1 in 7 parents
The majority of Australian parents get hit with hundreds if not thousands in out-of-pocket hospital expenses after childbirth.
-
Health insurance for elective surgery
Australia has a great public healthcare system, but when it comes to elective surgery, there are good reasons to get private health insurance.
-
Health insurance for chronic pain
See how private health insurance can offer support if you suffer from chronic pain.
-
Occupational therapy and health insurance
Find out how both Medicare and private health insurance cover occupational therapy to get the assistance you need.
Ask an Expert
