Compare the cheapest life insurance policies for January 2019
Three quick steps to getting cheap life insurance* quotes:
- 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.
- Avoid extras if you don't need them. For instance, drop the additional trauma cover if you only need basic life cover.
Who offers the cheapest life insurance in Australia?
According to a premium comparison based on rates published by Rice Warner, you can save an average of 20% on premiums by going with NobleOak Life Insurance.
- A 98.5% customer satisfaction score 1
- Up to $15 million in cover
- Tailored cover to suit your needs
- Exclusive to Finder: Get a $100 eGift card. Offer ends 7 Feb 2019.
- April 2016 client survey by Pure Profile
What's on this page?
Discounts & Deals Compare brands Cheapest policies
Life insurance discounts to help you save on cover
NobleOak Life Insurance Deals
Get a $100 eGift card
Get a $100 eGift card with new NobleOak Life Insurance policy.
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Deal ends
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
Zurich Ezicover Deals
Get your first month of cover for free with Zurich Ezicover
Get your first month of cover free when you buy Zurich EziCover.
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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.
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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.
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HBF Life Insurance Deal
Get your first month free
Get your first month free when you buy HBF Ezicover Life Insurance.
Last verified
Compare Australian brands below and save
Find low-cost options directly from these insurance brands:
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
Cheapest life insurance rates* in Australia for January 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 a personalised cost estimate
Cast study: $500,000 in life insurance cover for a 35 year old.
| Life Insurance Policy ($500,000 sum insured) | Monthly premium (Male) |
Monthly premium (Female) | Rewards program |
|---|---|---|---|
| AIA Priority Protection | $21.57 | $16.07 | AIA Vitality |
| TAL Accelerated Protection | $23.48 | $17.12 | TAL Health Sense |
| MLC Insurance | $25.58 | $20.12 | MLC On Track |
| Clearview LifeSolutions | $25.77 | $18.69 | Health Maintenance Reward |
| Asteron Life Complete | $27.03 | $22.15 | Asteron Healthy Life Option (up to age 29 on Stepped Premiums) |
| AMP Elevate | $26.41 | $21.17 | N/A |
| CommInsure Protection | $29.72 | $23.76 | N/A |
| OnePath OneCare | $30.14 | $24.49 | N/A |
| Zurich Wealth Protection | $30.11 | $24.42 | N/A |
| BT Protection Plans | $33.53 | $25.59 | N/A |
*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 1 November 2018 and are subject to change.
Does does the price for each brand change with your age? Yes it does
For a more accurate quote, compare quotes online.
What's covered in this article?
Seven tips to spending less on life insurance
Let us save you the trouble of trawling through the staggering amount of advice for reducing life insurance costs that can be found online. If you follow these seven tips you will be well prepared to make an informed policy decision that gives you the best value for money without leaving you underinsured.
1. Quit smoking
If you are a smoker and you want to be eligible for cheaper health insurance, the best step is to quit. Smoking, which to some brands can be as little as 1 cigarette within 6 months, can raise premiums by up to 50%. It can also add expensive exemptions to life insurance.
2. Consider applying early in your life stages
In some cases it can be cheaper to apply for coverage when you are younger. As you grow older, premiums increase as the risk of claim also increases. It is also generally true that younger people are healthier, which means there will be fewer conditions that can lead to higher premiums.
3. Understand and choose the appropriate premium type
Generally, there are 2 different premium structures available:
- Stepped premiums. These start off cheaper than level premiums but increase with age. This is good for those who may switch between brands or who need cover for a shorter term.
- Level premiums. These are more affordable long-term because they do not change with age. Level premiums are best for those who want to stick with a brand for an extended period of cover.
4. Get the right amount of cover for your needs
The easiest way to save money on a new policy is to know exactly what you need and buy accordingly. This will allow you to balance the payout, benefits and bundled extras with what you will need rather than adding unnecessary and costly extras. For example:
- If you are only after cover that protects your family if you pass away prematurely then you probably won't require income protection.
- On the other hand if you are after cover that protects you if you're unable to work due to illness or injury and if you pass away then you may want to consider bundling life insurance and income protection.
5. Compare policies
The high demand for quality life insurance means that there are plenty of companies to choose from and that there is healthy competition in the market. Because of this, it is best to compare the policies of multiple brands in order to find the best rates. If you compare policies, you may be able to find:
- A policy that offers extra benefits for the same price (e.g. included trauma benefit or child cover).
- Savings on similar policies (e.g. a lower price on one policy for the same amount insured).
- Extra value on a policy (e.g. free child cover).
6. Consider getting a policy through super
You may be able to take out a life cover policy through your super fund. Many super funds will have included cover that is paid using your super contributions. This is often a cheaper alternative to standalone life insurance but not as tailored.
7. Speak to an adviser
Purchasing a policy through a qualified insurance adviser is a sensible option to lower the costs of life insurance. An adviser can guide you through picking a policy and tailor a plan to your specific needs. This means that the plan will have everything you need while cutting down on unnecessary features or costs.
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.
| Pros | Cons |
|---|---|
| Choose the amount you’re covered for | Underwriting process (but this mean's you know what you're covered for upfront) |
| Guaranteed renewable | Need 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.
| Pros | Cons |
|---|---|
| Guaranteed renewable | Direct policies have the highest average declined claim rate (12%) unless they are underwritten |
| Can be obtained online or over the phone | Cover is more expensive |
| Little to no medical underwriting on most policies | You’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.
| Pros | Cons |
|---|---|
| Retail policies have a low average declined claim rate (8%) | Drain on retirement savings |
| Automatic acceptance in most cases | Lower benefit payments |
| No “out-of-pocket” fees | Benefits 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 |
|---|---|
|
$200,0001 |
|
$680,0001 |
|
-$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:
Contact an adviser to compare cheap life insurance and receive a quote
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' and 'Cheapest' are not product ratings and are subject to our disclaimer. You should consider seeking financial advice and consider your personal financial circumstances when comparing products.
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
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