How do I find affordable life insurance without compromising on quality?

Follow these steps

Picture not described

It's possible to get life insurance at a cheaper rate without skimping on the quality as long as you:

  • Understand your personal needs. That is, how much cover you need and what type.
  • Compare multiple quotes. Review either online or with an adviser for a cheaper quote. We've picked out two of the cheapest just below.
  • Avoid extras if you don't need them. For instance, drop the additional trauma cover if you only need basic life cover.

Two of the cheapest life insurance policies available in Australia

  • NobleOak Life Insurance. For $500,000 in cover, you'll pay $24.94 per month for males and $19.46 per month for females.
  • AIA Life Insurance. For $500,000 in cover, you'll pay $21.57 per month for males and $16.07 per month for females.

Based on quotes taken out through insurer websites and using our quote engine. These two policies were picked from a comparison of 19 policies. Prices may vary based on your age. Last checked May 2019.

Find cheap life insurance

Compare cheap cover Discounts & Deals Tips to save

Cheapest life insurance rates* on Finder for 2019

Although price depends on circumstances, in our case study below we found it possible to get $500,000 of life cover for less than $17 per month (females) and less than $22 per month (males) with AIA Priority Protection.

Get live quotes

Case study: $500,000 in life insurance cover for a 35 year old.

RankLife Insurance Policy ($500,000 sum insured)Monthly premium (Male)Rewards programDo you need an adviser to purchase this cover?
1Picture not describedAIA life insurance

AIA Priority Protection

$21.57AIA VitalityYes
2Picture not described

NobleOak Life Insurance

$24.94N/ANo
3Picture not described

BT Protection Plans

$25.19N/AYes
4Picture not described

MLC Insurance

$25.58MLC On TrackYes
5clearview

Clearview LifeSolutions

$25.77Health Maintenance RewardYes
6AMP logo

AMP Elevate

$26.52AMP Healthy StartYes
7Asteron logo

Asteron Life Complete

$26.94Asteron Healthy Life Option (up to age 29 on Stepped Premiums)Yes
8Picture not describedtal life insurance

TAL Accelerated Protection

$28.14TAL Health SenseYes
9CommInsure logo

CommInsure Protection

$29.72N/AYes
10Zurich logo

Zurich Wealth Protection

$30.11SmartValue Discount (When you combine cover with income protection)Yes
11Picture not describedOnePath logo

OnePath OneCare

$30.14N/AYes
12ANZ Logo

ANZ Life Insurance

$35.28Earn Qantas Frequent Flyer PointsNo
13Zurich logo

Zurich Ezicover Life Insurance

$35.88N/ANo
14Hbf Logo

HBF Ezicover Life Insurance

$35.88First month waivedNo
15Qantas logo

Qantas Life Insurance

$41.32Earn Qantas Frequent Flyer PointsNo
16Picture not described

Medibank Life Insurance (non-member)

$44.34Discount's for Medibank Health Fund MembersNo
17Picture not describedinsuranceline

InsuranceLine Life Cover

$47.43N/ANo
18nib logo

nib Value Life Insurance

$54.00N/ANo
19Virgin money logo

Virgin Money Tailored Life Insurance

$59.00N/ANo
RankLife Insurance Policy ($500,000 sum insured)Monthly premium (Female)Rewards programDo you need an adviser to purchase this cover?
1Picture not describedAIA life insurance

AIA Priority Protection

$16.07AIA VitalityYes
2Picture not described

BT Protection Plans

$17.25N/AYes
3clearview

Clearview LifeSolutions

$18.69Health Maintenance RewardYes
4Picture not described

NobleOak Life Insurance

$19.46N/ANo
5Picture not described

MLC Insurance

$20.12MLC On TrackYes
6AMP logo

AMP Elevate

$21.28AMP Healthy StartYes
7Asteron logo

Asteron Life Complete

$22.08Asteron Healthy Life Option (up to age 29 on Stepped Premiums)Yes
8Picture not describedtal life insurance

TAL Accelerated Protection

$22.56TAL Health SenseYes
9CommInsure logo

CommInsure Protection

$23.76N/AYes
10Zurich logo

Zurich Wealth Protection

$24.42SmartValue Discount (When you combine cover with income protection)Yes
11Picture not describedOnePath logo

OnePath OneCare

$24.49N/AYes
12ANZ Logo

ANZ Life Insurance

$26.65Earn Qantas Frequent Flyer PointsNo
13Zurich logo

Zurich Ezicover Life Insurance

$28.40N/ANo
14Hbf Logo

HBF Ezicover Life Insurance

$28.40First month waivedNo
15Qantas logo

Qantas Life Insurance

$30.74Earn Qantas Frequent Flyer PointsNo
16Picture not described

Medibank Life Insurance (non-member)

$33.44Discount's for Medibank Health Fund MembersNo
17Picture not describedinsuranceline

InsuranceLine Life Cover

$33.95N/ANo
18nib logo

nib Value Life Insurance

$45.00N/ANo
19Virgin money logo

Virgin Money Tailored Life Insurance

$49.00N/ANo

Get quotes

*Premium rates are based on a policy taken out in NSW by a non-smoker for a sum of $500,000. | Quotes are a rough estimate and don't take into account your personal situation. | Figures are correct as of February 2019 and are subject to change. We took out quotes for the policies we compare on Finder that allow for online quotes. There may be some policies in the market that aren't covered here.

Does the price for each brand change with your age? Yes it does

For a more accurate quote, compare quotes online.

Life insurance discounts to help you save on cover

Medibank Life Insurance Deals Medibank Life Insurance Deals

Get a quote and you could win a $1,000 eftops Gift Card

Go into the weekly draw to win a $1,000 eftpos gift card when you get a quote for Medibank Life Insurance. T’s and C’s apply.

Last verified

Get deal

Deal ends

Qantas Life Insurance Deals Qantas Life Insurance Deals

Receive up to 100,000 Qantas Points

Join Qantas Life Insurance and earn up to 100,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.

Last verified

Real Life Insurance Deals 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

Medibank Life Insurance Deals Medibank Life Insurance Deals

10% off premiums for Medibank insurance members

Medibank health insurance members can save 10% off premiums on a life insurance policy.

Last verified

nib Life Insurance deal nib Life Insurance deal

Get one month's premium free

Receive one month's premiums free if you pay annually. T’s and C’s apply.

Last verified

Zurich Ezicover Deals 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

NobleOak Life Insurance Deals NobleOak Life Insurance Deals

Get 1 month free

Apply for Life Insurance and get your first month free. Offer ends October 31, 2019. T&C’s apply.

Last verified

Get deal

Deal ends

InsuranceLine Deals InsuranceLine Deals

Get a $100 bonus gift

Take out a life insurance policy and get a $100 bonus gift after holding cover for 2 months. Ends 31 March 2020. T’s and C’s apply.

Last verified

Get deal

Deal ends

Seven life insurance hacks every consumer should know about

1. Live a healthy lifestyle to earn discounts on your cover

Health and wellness programs are big business these days, with insurers focusing on reducing their risk by encouraging members to lead healthier lifestyles. Examples of popular health-related rewards programs include:

frequent-flyers-icon-shutterstock_9_may_2017

Some brands let you earn frequent flyer points from what you spend on premiums

2. Look for a brand that integrates frequent flyer programs

Some brands let you earn frequent flyer points from what you spend on premiums. Some policies even offers bonus points when you sign up.

These are similar to health and wellness programs, except the emphasis is not so much on health as on more tangible rewards such as shopping, entertainment and travel discounts. Typical rewards programs include:

  • OnePath Frequent Flyer Program. If you're a Qantas Frequent Flyer member, you can earn one point for every $1 in premiums you pay for OnePath Life Insurance (up to 20,000 points per year, per policy).

tap and go payment 450

3. Maintain your policy with the same insurer

Loyalty discounts are an insurer's way of saying thank you for maintaining your policy with them over time. This might take the form of a premium discount or an increase in the benefit paid and typical examples include:

  • CommInsure Loyalty Bonus. If you've been with CommInsure for five years or more, it will increase the benefit payable on your life cover, TPD cover, child cover, trauma or terminal illness cover by 5% at no extra charge.
  • NRMA Insurance Loyalty Discount. Depending on how many policies you have and the number of years you have held them, you can save up to 10% on your premiums.
  • Real Life Insurance Real Reward. After 12 months, receive 10% back from the premiums you've paid on your life insurance.

construction workers on-site

4. Take out more than one type of cover

Many policyholder take out life insurance and then add another policy e.g. income protection. A multi-policy discount can sometimes apply when you are are covered by multiple policies. Examples include:

  • Zurich Multi-Cover Bonus. A straight-up premium discount of 5% off each relevant policy.
  • MLC Multi Policy Discount. Receive a discount of up to 30% on income protection by bundling your life cover, TPD and critical illness cover with income protection and funding at least one insurance through your super on an eligible MLC account.

couple-new-card450x250

5. Combine cover with a spouse

Many life insurers will offer a premium discount if you and your partner both apply for cover at the same time. Multi-life policy discounts can be as high as 10% of your premium, depending on the insure. Comparing online or with a financial adviser is a great way to find a discount that offers the best value on applications.

Children's bank account freebies content feed image

6. Look for free premiums offers (on the first month)

There's no such thing as free life insurance, but some insurers will offer you a limited initial period of cover free of charge as an incentive for taking out a policy with them. Examples include:

  • NobleOak Life Insurance. No premiums are payable in the first month after taking out a policy.
  • Zurich Australia. Take out Zurich Ezicover Life Insurance and the first month's premium is free for all applicants.

rabo saving content fee

7. Insure a higher sum for a bulk discount

Another incentive you can take advantage of to save on your life insurance is higher cover discounts. These are discounts on your premiums if you select a higher benefit amount. Typical examples include:

What makes life insurance cheaper (or more expensive?)

There many factors that go into determining your life insurance premiums including:

  • Your age. The earlier you apply for cover, generally the cheaper your premiums.
  • Your gender. Whether you’re a man or a woman will affect your life insurance premiums as women tend to live longer than men.
  • Your job. If you’re in a profession that is considered “safe” you’ll pay less than someone in a high risk category.
  • If you smoke. Smokers will generally pay almost double for life insurance than a non-smoker.
  • The type of cover you want. If you’re after just life insurance, you’ll pay less than someone after a full suite life, trauma, income protection and total permanent disability cover.
  • How much cover you want. The amount you chose to insure yourself also plays a major role, ie someone insuring themselves for $100,000 will pay significantly less than someone who’s insured for $1.5 million.
  • How long you want cover. While it won’t affect the post of your policy, obviously the longer you have cover the more you’ll pay. The number of years you have cover for is referred to a the “term” of the policy.
  • Your general health. If you’re fit and healthy you’re going to pay less than someone with a long medical history.
  • Your lifestyle. In the same vein as those that choose to smoke, those that participate in dangerous activities are going to pay more than those that take less risks.
  • How you pay your premiums. 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. If you take out a 'joint policy' you can often get a discount on your premiums. Some policies may cover your children for free.

What are the different types of cover available?

How much your life insurance costs also depends on the type of life insurance you take out and there are three options: direct, retail and group.

Retail policies are life insurance policies that you’d buy after seeking financial advice from a life insurance broker or adviser.

ProsCons
Choose the amount you’re covered forUnderwriting process (but this mean's you know what you're covered for upfront)
Guaranteed renewableNeed to speak with an adviser
Retail policies have the lowest average declined claim rate (7%)
Benefits are indexed
Premiums are generally cheaper

A direct or (non-advised) life insurance policy is one you’d buy directly from an insurer without the aid of a broker, an adviser or super fund.

ProsCons
Guaranteed renewableDirect policies have the highest average declined claim rate (12%) unless they are underwritten
Can be obtained online or over the phoneCover is more expensive
Little to no medical underwriting on most policiesYou’re required to do more work to understand cover
Can cost less in some cases

Group life insurance policies are issued to third parties such as your super fund`, who then in turn allow you to access cover as a member of their fund.

ProsCons
Retail policies have a low average declined claim rate (8%)Drain on retirement savings
Automatic acceptance in most casesLower benefit payments
No “out-of-pocket” feesBenefits are not indexed

Are there any downsides to buying cheap policies?

The major danger of buying a cheap life insurance policy is getting a policy that won't cover your lifestyle or not be getting cover that is suited to your situation.

Not being covered for your lifestyle of health conditions

Another mistake people make is purchasing life insurance directly without a medical questionnaire. While this is quick and can sometimes save your cash on premiums, this policy will automatically exclude any pre-existing medical conditions. You won't know this until claim time.

Underinsurance in Australia

While the number of Australians with life insurance is on the rise thanks in part to superannuation, the amount of cover we have is on the whole inadequate, according to Rice Warner.

Current insurance vs needs Amount
  • Typical default life insurance cover inside super.
$200,0001
  • Rough life insurance needed by Australians.
$680,0001
  • Underinsurance gap.
-$480,000

The major danger of buying a cheap life insurance policy is that you might not be getting cover that is suited to your situation. This is a growing issue in Australia and it’s called underinsurance.

Can you get life insurance without doing a medical exam?

If you want to buy cheap life insurance without having to go through the hassle of a medical examination, then you may want to consider direct life insurance. The advantage of this policy type is that the application process is very straightforward, with little to no medical underwriting required. It can be convenient for:

  • Those who know exactly what they need in a policy
  • Those who understand how the specific policy works and don't need the help of an adviser

However, the lack of medical underwriting can be a double-edged sword due to:

  • Insurers making assumptions on your health and the level of risk you carry due to you not having to undertake a medical examination.
  • This can result in your premium rates being higher compared to obtaining life insurance which has a more stringent medical underwriting process.

Find the best price by comparing

There are many benefits from leveraging the internet to compare your life insurance options.

  • Use online tools to get a quote. You can compare multiple life insurance policies at once to secure the best deal to suit your needs and budget.
  • Get help and assistance with an adviser. Understanding complex features in a life insurance policy does not need to be difficult. With the help of an insurance adviser, you can get access to tailored recommendations on different policy options suitable for your personal circumstances.

Some final questions you may want answered

If you are looking for cheap life insurance it is important that you make careful comparisons and understand exactly what you’re getting from your coverage, because while you may be budget conscious, you don’t want that to come at the price of having inadequate cover. Therefore, following are the answers to all of your questions:

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Cooling-off
(days)
Expiry Age Short Description
$1,000,000
60
$100,000
30
99
Get life cover up to $1 million.
$15,000,000
69
$50,000
30
99
Get a quote for up to $15 million in life insurance cover. Switch to the Best Life Insurance policy as awarded by Finder and save on average 20% (See NobleOak website for details).
$1,000,000
64
$100,000
30
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$2,000,000
74
$100,000
30
99
Join Qantas Life Insurance and earn up to 100,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$1,500,000
69
$50,000
30
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
65
$100,000
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, Medibank health insurance members can save 10% off premiums.
$1,000,000
65
$100,000
30
80
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
$1,500,000
65
$100,000
30
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, ahm health members can save 10% off premiums.
$1,500,000
69
$50,000
30
99
Get your first month free when you buy HBF Ezicover Life Insurance.
$1,500,000
64
$100,000
30
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$1,500,000
65
$100,000
30
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Ends 31 March 2020.

Compare up to 4 providers

Find low-cost cover with a qualified consultant

Sex
Do you smoke?

An adviser can help you find cover from trusted life insurance brands.

  • Get competitive quotes from up to 10 policies
  • Lower rate of declined claims (according to ASIC)
  • Save time and effort

Lender Logos

* 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.

Was this content helpful to you? No  Yes

Recommended guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

2 Responses

  1. 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 the form HERE.

      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

Ask a question
Go to site