Cheap life insurance

James Martin Life Insurance Senior Writer

Editorial pick for affordable Life Insurance: NobleOak

We sourced quotes from over 18 life insurance brands to find out which companies offered the best value. Our research found 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 – as high as $15 million. You can also access complimentary financial advice and grief counselling to help when you need it most.

• Get 2 months free when you apply for one or more life insurance types with NobleOak's Premium Life Direct policy before 30 June 2022. T&Cs apply

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• Methodology - How did we make this decision?

  We obtained quotes from over 11 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. 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
  • 3 different levels of cover, ($200,000, $500,000 and $1 million)
  • 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 18 direct life insurance brands in Australia* and then ranked them from least expensive to most expensive. Check out who's offering coverage at an affordable rate.

These quotes are based on a non-smoker aged 35 with $500,000 worth of life insurance cover. Prices vary based on your age, gender, income and occupation.

Life insurance policy	Monthly premium (male)	Monthly premium (female)	Cover amount	Apply
NobleOak Premium Life Direct	$23.11	$15.20	$500,000	Get quote
TAL Life Insurance	$25.09	$20.95	$500,000	Go to Site
Allianz Life Plan	$31.65	$23.49	$500,000	More info
Zurich Ezicover Life Insurance	$38.51	$29.76	$500,000	Get quote
ANZ Ezicover Life Insurance	$38.51	$29.76	$500,000	More info
AHM Life Insurance	$40.82	$31.22	$500,000	Get quote
Medibank Life Insurance	$42.96	$32.86	$500,000	Get quote
Insuranceline Life Insurance	$44.64	$30.69	$500,000	More info
AAMI Life Insurance	$44.64	$30.69	$500,000	More info
Suncorp Life Insurance	$44.64	$30.69	$500,000	More info
Bendigo Bank MaxLife Life Protect	$62.82	$36.06	$500,000	More info

_{*Quotes are an estimate only. Figures are correct as of March 2022 and are subject to change. There may be some policies in the market that aren't covered here.}

What impacts the price you pay?

The following are some of the factors impacting the cost your life insurance premiums:

• Your age. Premiums go up as we get older.
• Your gender. Life insurance for women tends to be cheaper.
• 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 about twice as much as non-smokers.
• Level of cover. The higher the benefit payout, the higher the premium tends to be.
• Added cover. Premiums go up 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 1 of 2 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.
• Combining cover. Some insurers offer discounts to customers with multiple policies.

Cheapest 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's much of a price difference between them but, over a year, the dollars can add up.

Every year:

• A woman aged 30 could save $287.88, while a woman aged 50 could save $714.24
• A man aged 30 could save $519.60, while a man aged 50 could save $694.32

How age impacts the price

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.

Different options for life insurance

There are 3 types of life insurance: retail, direct and group.

Top picks for life insurance in Australia

Top Pick for

Highest maximum cover

NobleOak Life Insurance

Finder Award

Top Pick for

Member perks

Medibank Life Insurance

Top Pick for

Strong reputation

Zurich Ezicover Life Insurance

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 that doesn't suit your lifestyle. You can get cheaper life insurance by telling your insurer you don't smoke, but if you do, then your policy might not pay out when you make a claim. Always be accurate, 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 easier, but it'll automatically exclude any pre-existing medical conditions. If you have any health issues, expect to pay more for your life insurance.
• Underinsurance. Lots of Australians don't take out enough insurance for genuine financial security. While $250,000 worth of life insurance sounds great, that wouldn't even cover half of the average mortgage. Calculate how much life cover you need with our quick quiz.

Can you get cheap life insurance without a medical exam?

Yes, you can get life insurance without taking a medical exam. And while there are some advantages to going down this path, there are also some pitfalls.

5 tips for saving on your life insurance

5 tips for saving 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. For example, AIA Vitality lets you score discounts on your premium as your health improves.

Compare policies

You should compare your life insurance from time to time to see if you can save. Keep in mind that switching won't always be beneficial as you get older – it's generally better to get in early with life cover.

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. With Zurich, you can get a premium discount of 5% on each relevant policy.

Look for frequent flyer programs

Some insurers will integrate frequent flyer programs into their policies, so you can earn points for every dollar you spend on your premiums. For instance, Qantas Frequent Flyer members can earn one point for every dollar spent in premiums with OnePath Life Insurance

Apply coupon codes

Some life insurers will occasionally run promotional offers including some generous sign up offers. Be sure to look for discounts and deals before you buy your policy, as you could save some cash.

Frequently asked questions

• Am I eligible for cheap life insurance?

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

  We'd recommend you compare life cover from a range of providers to help you find the right cover at a competitive price.

• Do I have to re-serve waiting periods if I switch?

  You often won't have to re-serve waiting periods if you had similar or equivalent cover with another provider. You will probably have to serve a waiting period if you're upgrading or didn't previously have cover for a service that your new policy includes.

• Are life insurance premiums tax deductible?

  In most cases, no. For example, the ATO specifies that insurance premiums aren't tax deductible if the policy pays a benefit for physical injury. However, it can pay to check with your accountant about your circumstances.

• 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. That's assuming you have a stepped premium structure.

• How can life insurance be paid for?

  You can pay your life insurance premiums fortnightly, monthly or annually. In most cases, you can qualify for a discount if you can afford to make an upfront annual payment.

• What if the premiums become too expensive?

  If you fail to pay your premiums your life insurance policy will be cancelled, but 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 make a claim on a death policy, no more premiums are required to be paid. But, if you are claiming on a living insurance policy your premiums will be reduced by the amount of the benefit paid.

Read more:

• Weekly cost of life insurance

• What is the best life insurance?

• Life insurance rewards