Life insurance can protect your financial future, regardless of what life stage you are at.
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 have created for them.
Women pay less than men for death cover, on average. But, women may face higher costs for trauma cover and income protection insurance.
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 (or, death cover) pays your beneficiaries – often 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, and school fees. It also acts like an income you can no longer provide to pay for household bills such as utilities, food and petrol.
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.
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.
If you become sick or injured and need to take some time off work, this pays you a monthly income, usually up to 70%-75% of your current salary for a period of up to 2 or 5 years.
Compare life insurance from Australian providers
Finder survey: What type of life insurance do people have?
Response
Female
Male
I don't have any of the above insurance
64.85%
56.22%
Life insurance
29%
35.99%
Income protection insurance
15.47%
21.34%
TPD insurance
12.3%
16.51%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
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.
How much does life insurance cost for women?
Women tend to pay less than men for life insurance, as they have a longer life expectancy. This means they are seen as less of a risk to insurers. However, the cost of life insurance varies a lot depending on personal factors including your age, health and smoking status.
These quotes show the average monthly cost of cover, based on 4 age groups we researched for the 2023 Finder Awards:
The quotes above were based on a white-collar worker, non-smoker, living in NSW, with an income of $80,000 per annum and a $500,000 policy.
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).
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.
Why is there a price difference between women and men for life cover?
On average, women pay less for death cover due to the difference in life expectancy – which is 85.4 years for females and 81.3 for males. This means that men are seen as an added risk of making a claim, and this is passed on in the form of higher premiums.
However, women tend to pay more for both income protection insurance and trauma cover due to their higher likelihood of making a claim for these insurances. Women are on the whole more susceptible to some working-age based illnesses, such as breast cancer, that can lead to more claims.
Phil Thompson, Director of Skye Wealth, told Finder: "There are no anti-discrimination laws for insurance companies. That's what insurance is all about: pricing based on risk. It's a discrimination."
Pascale Helyar-Moray, a financial literacy expert, told Finder the inequality in pricing is also due to cultural factors – with women being generally more inclined to go to a doctor when they suspect they're ill.
Insurers know that women are more likely to take action. Therefore, there's going to be a higher degree of medical treatment and a cost outlay required. And that's why women are charged more.
Still unsure what cover you need? Take this quick quiz
Bottom line
Life insurance can provide financial security and peace of mind in case the worst happens. You can begin comparing policies here.
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
A lot. Finder research found a 40-year-old non-smoking female might pay $22 per month for a policy, while a smoker could pay $42. These average prices were based on NobleOak policies and were correct as of February 2023.
An insurer considers you to be a smoker if you've regularly used a nicotine product, including vaping, in the past year.
Yes. This is an often overlooked part of financial planning. If you were to die, your partner may need to pay costs which aren't related to a direct income, such as household chores.
This depends on how much you earn and how much you have to pay off. You can use our life insurance calculator to get a better idea.
It depends on the specific details of the policy you hold. We reviewed 10 providers and found the majority had a policy expiry age of 99. Medibank and ahm don't specify an expiry age – after 99, premiums stay the same assuming you keep up with your payments.
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 your income, 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.
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).
While it's possible to have multiple life insurance policies, can you receive payment from more than one if you claim? Read on to find out.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
