Cheap life insurance

Life insurance can provide a financial safety net for your loved ones' futures and it doesn't have to cost a fortune. We looked at over 20 life insurance brands in Australia to find some of the cheapest options for you. We've also provided some tips on how you can save further on your life insurance.

By taking steps such as bundling your insurances or changing your premium types, you can save big in the long run.

Maddie Burke Insurance Publisher

Finder's Pick for affordable Life Insurance: NobleOak

We requested quotes from over 20 life insurance brands to find out which companies offered the best value. Our research found that NobleOak Life Insurance is an affordable option that offers a range of extras that make it great value for money.

NobleOak offers one of the highest levels of cover in the market across a range of its products, including TPD, trauma and income protection insurance. You can also access complimentary financial advice and grief counselling giving you extra support when you need it most.

• First Month Free
  Get your first month free when you buy NobleOak Life Insurance. Offer ends 30 September 2020. T&Cs apply.

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Methodology - How did we make this decision?

We obtained quotes from over 20 Australian insurance brands (listed in the table below) to form the basis of our comparison for cheap life insurance. We only compared direct insurance policies and our comparison is not reflective of the full market available.

We used multiple variables including:

• Age ranges from 18 through to 70 years of age
• Smoking versus non-smoking status
• Three different levels of cover, ($200,000, $500,000 and $1 million)
• And both male and female quotes

We also considered which brands offered extra inclusions and exclusions when determining which policy could give you better value for money.

Compare cheap life insurance in Australia

We requested quotes from over 20 direct life insurance brands in Australia and then ordered them from least expensive to most expensive, so you can see who's offering coverage at an affordable rate. They are based on a 35-year-old nonsmoker with $500,000 worth of life insurance.

Life Insurance Policy	Monthly premium (Male)	Monthly premium (Female)	Cover amount	Apply
NobleOak Life Insurance	$24.94	$19.46	$500,000	Get quote
Zurich Ezicover Life Insurance	$35.88	$28.40	$500,000	Get quote
ahm Trauma Insurance	$42.14	$35.30	$500,000	Get quote
Medibank Life Insurance (non-member)	$44.34	$33.44	$500,000	More info
AIA Priority Protection	$21.57	$16.07	$500,000	Get quote
BT Protection Plans	$25.19	$17.25	$500,000	More info
MLC Insurance	$25.58	$20.12	$500,000	Get quote
Clearview LifeSolutions	$25.77	$18.69	$500,000	More info
AMP Elevate	$26.52	$21.28	$500,000	More info
Asteron Life Complete	$26.94	$22.08	$500,000	More info
TAL Accelerated Protection	$28.14	$22.56	$500,000	More info
CommInsure Protection	$29.72	$23.76	$500,000	More info
Zurich Wealth Protection	$30.11	$24.42	$500,000	More info
OnePath OneCare	$30.14	$24.49	$500,000	Get quote
ANZ Life Insurance	$35.28	$26.65	$500,000	More info
HBF Ezicover Life Insurance	$35.88	$28.40	$500,000	More info
Qantas Life Insurance	$41.32	$30.74	$500,000	More info
InsuranceLine Life Cover	$47.43	$33.95	$500,000	More info
AAMI Life Insurance	$48.06	$40.84	$500,000	More info
nib Value Life Insurance	$54.00	$45.00	$500,000	More info
Virgin Money Tailored Life Insurance	$59.00	$49.00	$500,000	More info

_{*Quotes are an estimate only. Figures are correct as of February 2020 and are subject to change. There may be some policies in the market that aren't covered here.}

What impacts the price you pay for life insurance?

The following are some of the factors that impact the price of your life insurance premiums:

• Your age. Premiums go up as we get older.
• Your health. Healthy people will pay less than those with medical problems.
• Your lifestyle. Gym-goers may be able to claim premium reductions.
• If you smoke. Smokers typically pay almost twice as much as nonsmokers.
• Level of cover. The higher the benefit payout, the higher the premiums.
• Added cover. Premiums are higher if you add trauma, income protection and total permanent disability cover to your standard life insurance policy.
• Payment type. You can generally choose to pay your premiums in one of three ways:
  - Stepped. Your premiums start out lower but increase as you get older.
  - Level. You pay the same price for the term of the policy.
  - Hybrid. Your premiums increase to a point and then plateau.
• Combining cover. Some insurers offer discounts to customers with multiple policies.

Cheapest life insurance vs most expensive life insurance

The graph below illustrates the difference in price between the most expensive life insurance policy and the least expensive policy.

It might not look like there is much of a price difference between the cheapest and most expensive policies but, over a year, the dollars can add up.

Every year:

• A 30 y/o woman could save $91.08
• A 50 y/o woman could save $169.99
• A 50 y/o woman could save $169.99
• A 30 y/o man could save $103.80
• A 50 y/o man could save $162.08

_{This graph was created using online quotes from Finder partners. Information provided was for a nonsmoking office worker in NSW, who requested $500,000 of coverage. Quotes were requested in February 2020.}

How age impacts the price of life insurance

There's no hiding it. Life insurance gets more expensive as we age. Use the handy tool below to see how the average price of life insurance increases over time.

For a more accurate quote, compare quotes online.

_{Note: Data is based on a nonsmoking female office worker. Quotes are for illustrative purposes only and do not take into account your personal situation.}

Different options for life insurance

There are three types of life insurance: retail, direct and group.

Type	How to buy	Pros	Cons
Retail	Buy after seeking advice from a life insurance broker or adviser.	Premiums are generally cheaper Choose the amount of cover Guaranteed renewable Lowest average declined claim rate (7%) Benefits are indexed	Must speak with an adviser Underwriting process
Direct	Buy directly from an insurer without the aid of a broker, adviser or super fund.	Guaranteed renewable Can buy online or over the phone Little to no medical underwriting process	Cover is usually more expensive Highest average declined claim rate (12%) More effort to understand cover
Group/ super	Access cover as a member of a super fund	Low average declined claim rate (8%) Usually an automatic acceptance No upfront costs	Drain on retirement savings Lower benefit payments Benefits are not indexed

Are there any downsides to cheap life insurance?

For some people, yes. That's why you should never buy life insurance based on price alone. Always make sure you read the product disclosure statement (PDS) carefully. Risks associated with cheap life insurance include the following:

Getting a policy which doesn't suit your lifestyle
You can get cheaper life insurance by telling your insurer you don't smoke, but if it's not true, your policy might not pay out when you make a claim. Always be truthful, even if it's going to cost you more money upfront.

Not being covered for health conditions
Buying life insurance without a medical questionnaire may be quicker and sometimes cheaper, but it'll automatically exclude any pre-existing medical conditions. If you have any health issues, expect to pay more for your life insurance.

Accidental underinsurance
If the price of your life insurance premiums seems too good to be true, it probably is. Lots of Australians don't take out enough insurance for genuine financial security. While $200,000 worth of life insurance sounds great, that wouldn't even cover half of the average mortgage in Australia.

Can you get cheap life insurance without a medical exam?

You can get life insurance without taking a medical exam, and while there are some decent benefits to going down this path, there are also some major pitfalls.
Benefits

• Straightforward application process
• Little to no medical underwriting required
• Convenient for people who know exactly what they need in a policy
• Convenient for people who understand how the specific policy works
• Good for people who don't need the help of an adviser

Downsides

• Insurers make assumptions on your health and the level of risk you carry
• Premium rates may be higher compared to life insurance that has a more stringent medical underwriting process
• May find you're not covered for any pre-existing medical conditions you might have

Tips for saving money on your life insurance

Adopt healthy habits

Some life insurers have health and wellness programs, which offer rewards for healthy living as well as discounts on wellness products and services.

• See programs

  • AIA Vitality. Earn points as your health improves and get discounts on your monthly premiums. Discounts are also available on gym memberships, weight loss programs, fitness wearables, movie tickets and airfares.
  • Asteron Healthy Plus. Get up to 20% off your premiums if you meet certain health and lifestyle criteria.

Compare policies – or stay loyal

You should compare your life insurance every year to see if you can switch and save. However, some insurance companies do reward customer loyalty, so be sure to check if you're close to earning a reward before switching providers.

• See loyalty programs.

  • CommInsure Loyalty Bonus. Stay for five years and CommInsure will increase your benefit by 5% at no extra charge.
  • NRMA Insurance Loyalty Discount. Save up to 10% on your premiums if you have multiple policies for multiple years.
  • Real Life Insurance Real Reward. After 12 months, receive 10% back from the premiums you've paid on your life insurance.

Bundle policies

Some insurers will offer discounts if you take out more than one policy with them or if your spouse takes out insurance through the company too.

• See examples.

  • Zurich Multi-Cover Bonus. Get a premium discount of 5% off each relevant policy.
  • MLC Multi Policy Discount. Get up to 30% off income protection if you bundle it with life, TPD and critical illness cover.

Invest in higher cover

If you're eager to buy a high-value life insurance policy, consider ones that offer discounts on policies over a certain value.

• See discounts.

  • Virgin Life. Get 25% off your premium if you buy at least $500,000 in cover.
  • Insuranceline. Get 15% off your premium if you buy at least $400,000 in cover.

Look for frequent flier programs

Some insurers will integrate frequent flier programs into their policies, so you can earn points for every dollar you spend on your premiums. While this won't save you money on your premium, it does mean you could save money elsewhere.

• See programs.

  • OnePath Frequent Flyer Program. Qantas Frequent Flyer members can earn one point for every dollar spent in premiums with OnePath Life Insurance – up to $20,000 points per year.

Apply coupon codes

Some life insurers will run promotional offers from time to time. Be sure to look for discounts and deals before you buy your policy, as you could save some cash.

• See Coupons.

  • NobleOak Life Insurance Deals

    First month free for NobleOak Life Insurance

    No premiums are payable in the first month for NobleOak Life Insurance if you buy cover before 30 November 2020.

    Last verified 6 Oct 2020

    Get deal

    Deal ends 30 Nov 2020

    AAMI Life Insurance Deals

    5% OFF for existing customers

    Existing AAMI car & home insurance customers or family policies can get a 5% discount.

    Last verified 26 Oct 2020

    Get deal

    Real Life Insurance Deals

    Get 10% of premiums back in the first 12 months

    Receive 10% of premiums you’ve paid in the first 12 months with The Real Reward program.

    Last verified 1 Oct 2020

    Get deal

    ahm Life Insurance Deals

    10% off for ahm health members

    ahm health members get a 10% premium discount for the life of their policy

    Last verified 1 Oct 2020

    Get deal

    Zurich Ezicover Deals

    One month free

    Get the first month free and a 10% discount if you take out a second life insurance policy (discount applies to second policy). T&C’s apply.

    Last verified 1 Oct 2020

    Get deal
    .

_{Quotes represent a 35-year-old requesting $500,000 life insurance cover. Figures correct as of February 2020.}

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Frequently asked questions

• How are premiums calculated?

  You will be able to get cheaper life insurance premiums if you are young, healthy and lead a low risk lifestyle. Your gender and the level of cover you apply for also affect the cost.

• Are life insurance premiums tax deductible?

  Not usually, although it can pay to check with your own accountant.

• Are premiums guaranteed to stay the same?

  Your premiums will generally be recalculated each year on the renewal of your policy, based on your risk and lifestyle factors.

• How can life insurance be paid for?

  You can pay your life insurance premiums fortnightly, monthly or annually, and in most cases can qualify for a discount for annual payments.

• What if the premiums become too expensive?

  If you fail to pay your premiums your life insurance policy will be cancelled, however, you can contact your insurer to negotiate a lower level of cover for affordability.

• How can life insurance be cancelled?

  You can usually cancel any coverage during the insurer’s cooling off period, and your insurer cannot cancel your coverage unless you fail to pay your premiums.

• Are premiums still payable after making a claim?

  If you claim on a death policy, no more premiums are required to be paid, however, if you are claiming on a living insurance policy your premiums will be reduced by the amount of the benefit paid.

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* The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

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