Cheap life insurance

There are multiple ways to find cheap life insurance. Get $500,000 in cover from as little as $23 a month.

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James Martin Life Insurance Senior Writer

Finder's Pick for affordable Life Insurance: NobleOak

We sourced quotes from over 20 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.

  • 1 month free
    Get your one month free when you buy NobleOak Life Insurance policy. T&C's apply.
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Compare cheap life insurance in Australia

Looking for cheap life insurance?

We looked at a broad range of brands to show you some examples of affordable cover, however, these prices do not reflect personal circumstances and costs may vary.

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.

These quotes are based on a 35-year-old non-smoker with $500,000 worth of life insurance.

Life Insurance PolicyMonthly premium (Male)Monthly premium (Female)Cover amountApply
Picture not describedOnePath logo

OnePath OneCare

$17.49$13.67$500,000

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clearview

Clearview LifeSolutions

$21.59$16.48$500,000

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NobleOak Life Insurance

$23.11$17.03$500,000

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MLC Insurance

$24.41$19.20$500,000

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TAL Accelerated Protection

$25.59$20.95$500,000

More info

Zurich logo

Zurich Wealth Protection

$26.00$22.42$500,000

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Picture not describedAIA life insurance

AIA Priority Protection

$27.85$22.58$500,000

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RAC logo

RAC Life Insurance

$28.65$21.11$500,000

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Allianz Life Insurance Logo

Allianz Life Insurance

$32.65$26.87$500,000

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BT Protection Plans

$34.07$26.13$500,000

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Zurich logo

Zurich Ezicover Life Insurance

$39.49$31.26$500,000

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ahm logo

ahm Life Insurance

$42.14$35.30$500,000

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Medibank Life Insurance

$44.34$37.14$500,000

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AAMI logo

AAMI Life Insurance

$49.76$35.81$500,000

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Suncorp

Suncorp Life Insurance

$49.76$35.81$500,000

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Picture not describedinsuranceline
InsuranceLine Life Cover
$49.76$35.81$500,000

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Bendigo bankBendigo Life Insurance$56.99$38.80$500,000

More info

Woolworths logo

Woolworths Life Insurance

$62.85$44.67$500,000

More info

*Quotes are an estimate only. Figures are correct as of October 2021 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 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 one of two 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 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

Life insurance comparison
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.

TypeHow to buyProsCons
RetailBuy through 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
DirectBuy 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/ superAccess 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, as our guide explains
  • Benefits are not indexed, meaning they won't increase with inflation.

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.

Pros

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

Cons

  • 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

5 tips for saving on your life insurance

5 tips for saving on your life insurance

Muscle heart icon

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.

Papers with magnifying glass icon

Compare policies

You should compare your life insurance from time to time to see if you can save. But 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.

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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% off each relevant policy.

Frequent Flyer Points

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

Coupon code

Apply coupon codes

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

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Frequently asked questions

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2 Responses

    Default Gravatar
    robynAugust 29, 2018

    I am a 64 year old female and have cover but am comparing. I am a non smoker
    Could you please advise the cover you could offer
    Regards Robyn

      Default Gravatar
      JoelAugust 29, 2018

      Hi Robyn,

      Thanks for leaving a question on Finder.

      If you are still under 65, you can get a regular health insurance by filling out our form. Each health fund is different, policy prices, services covered, annual benefit limits, excess options, and sign-up offers can vary. Follow these key steps when comparing:

      1. Think about your requirements. Tailor your search to your budget and lifestyle.
      2. Find out what services you’re paying for. Make sure you’re not paying for things you won’t use.
      3. Shop around. Don’t just go with the brand you know the most, you may end up paying more.
      4. Consider all the costs. Remember to check excesses, limits, and co-payments.
      5. Know what the annual benefit limits are. Extras apply benefit limits to many included services.

      Once you have done your comparison and would like to speak directly to the insurer, you can click on the green “Go to site” button to be redirected to their page. I hope you find what you need,

      Cheers,
      Joel

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