After a discount on your life insurance cover? Find out what deals are available and how to take advantage of them.
Before you take out life insurance, find out if there are offers that can help you get the most value for money.
Features deals and discounts
All life insurance deals and discounts
A multi-policy discount usually applies when you combine more than one type of cover (e.g. Income protection with life insurance) with the same provider.
|AIA||Up to 12.5% discount||Speak to an adviser|
|AMP Elevate||Up to 5% discount||Speak to an adviser|
|Asteron||Up to 5% discount||Speak to an adviser|
|BT||Up to 5% discount||Speak to an adviser|
|MLC||Up to 30% discount||Speak to an adviser|
|OnePath||Up to 5% discount||Speak to an adviser|
A joint policy discount usually applies when you apply for cover cover either with a spouse or another family member.
|Provider||Joint policy discount/Family discount||Conditions||Apply|
|ANZ||You may receive a discount||Speak to ANZ directly to find out if you're eligible||Get a quote|
|Zurich Ezicover||Get a quote|
|InsuranceLine||The younger adult receives a discount when you apply on the same policy||Get a quote|
|Virgin||No conditions stated in PDS||Get a quote|
|AIA||Annual premiums for each must at least by $500||Speak to an adviser|
|AMP Elevate||Speak to an adviser|
|Asteron||You might be eligible for discounts if you apply at the same time with immediate family members or business partners in the same entity||Speak to an adviser|
|ClearView||Discount available at the time of application where there is a family group relationship or businessrelationship between the persons insured.||Speak to an adviser|
|OnePath||Available if you link your policy with an eligible family member, business partner or combination of family members and business partners||Speak to an adviser|
A larger sum discount applies when you purchase cover for a sum over a set amount defined by the insurer.
|Provider||Higher cover discount||Conditions||Apply|
|Virgin||25% discount available for any cover above $500,000||Premiums must be paid within 30 days of the due date||Get a quote|
|InsuranceLine||Up to 15% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured||Get a quote|
|AIA||Up to 30% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured.||Speak to adviser|
|AMP Elevate||Up to 36% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured||Speak to adviser|
|Asteron||Discount available (Check with an adviser)||Size of discount depends on the amount of cover insured and the type of cover that's insured||Speak to adviser|
|BT||Up to 30% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured||Speak to adviser|
|ClearView||Up to 24% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured||Speak to adviser|
|OnePath||Up to 32% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured.||Speak to adviser|
|TAL||Up to 34% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured||Speak to adviser|
|Zurich Future Wise||Up to 24% discount||Size of discount depends on the amount of cover insured and the type of cover that's insured.||Speak to adviser|
What types of deals and discounts are available?
Loyalty discounts are offered by almost all insurers if you keep your insurance with the same provider for more than one year. Discounts start at 5% and can go up to about 15% when you stay for a significant period of time e.g. 25 years. Conditions are as follows:
- You must hold policies with the insurer for more than two years in order to benefit.
- The discount increases each additional year the policy is held.
Loyalty discounts are applied to any existing or new policies. For joint policies, the discount is calculated based on the partner who has the longest existing relationship with the provider. Businesses are treated as a separate entity, so your personal insurance policies won’t contribute to loyalty discounts for a business in your name.
Just like supermarket and airline rewards programs, some life insurance products allow you to collect reward points. These programs allow you to accumulate discounts on life insurance payments or accumulate points towards other rewards programs e.g. frequent flyers.
- Provides benefits when you take out an insurance policy.
- You may be able to contribute points to any existing rewards programs you have with financial institutions or airlines.
- Can include special deals for movie tickets, flights or experiences.
- Bonus insurance benefits or cover may be awarded if you hold your policy for multiple years.
Most large insurance companies that offer a range of products will give you a discount when you take out more than one policy. Discounts start at around 5% and increase to about 15% for 10 or more policies.
- Policies can be for the same or different types of cover for items such as cars, home, life and travel.
- To get the maximum discount you may need to hold policies for more than 25 years.
While life insurance policies might count towards discount eligibility, they may not be discounted themselves. For instance, if you take out life and car insurance with the same insurer, you might get a discount on the car insurance, but not necessarily on the life policy.
Businesses are treated separately for multi-policy discounts, so policies for a business cannot contribute to a discount for personal policies. However, a multi-policy discount can be combined with loyalty discounts, so you could get a total discount of up to 25% for 10 or more policies and a 25-year or longer relationship.
Joint cover discounts
Couples or families who take out a policy together may be able to get a joint cover discount. As the cost of insuring a couple is less than for a single individual, you should get a discount when purchasing your policy.
- Joint cover can be taken out for a family as well as with a partner.
- The policy must include everyone’s name at the time it is established.
When taking out joint cover, additional discounts are based on the loyalty benefit of the policy member who has the longest relationship and most policies with the company. For instance, if one partner has held multiple policies for many years, then the loyalty and multi-policy discount for the joint policy will be calculated based on that person's discount eligibility. However, the other partner can include the joint policy for any future discount eligibility.
Free life insurance for first month
Some insurers offer free life insurance cover for the first month. You still have the same level of cover during the premium-free period, but payments aren’t taken until the second month.
- You don’t pay a premium for the first month of cover.
- In some instances, you will be refunded a months worth of cover after holding the policy for 12 months.
- You can still benefit from other discounts, such as multi-policy of loyalty discounts, when you become eligible for them.
If you purchase a large amount of cover, you may get a further discount. These can be up to 30% for amounts over $500,000.
- Discounts range from roughly 10% for $300,000 to 30% on an insured sum of $500,000.
- They can be combined with other discounts such as joint policy, loyalty and multi-policy if applicable.
Regardless of any discounts available, you should always compare the prices and inclusions of of a range of policies before purchasing. There might be one that better suits your needs, even without a discount.
Factors that might affect the cost of life insurance
Premiums are one of the major factors that would come into play when you consider buying life insurance. There are basically two types of premium insurance policies have – stepped and level.
Stepped premium lets you pay a low initial payment but with premiums which increase as your age increases. Level premium, on the other hand, has a higher initial payment but with premiums which stays the same throughout the whole policy.
When shopping around for life insurance, you might come to the conclusion that most of them are the same. Though this is generally true when you are thinking of the basic cover, each insurance policy has certain features, exclusions and add-ons which differ from provider to provider.
Some covers include accident cover, trauma, buyback options, and more. The buyback option is a feature which allows you to re-purchase a certain cover after a full benefit has been paid to you.
Age and Gender
Two factors that have a huge effect in the premiums you have to pay are your age and gender. Logically the younger you are, the lower your premiums are because you have fewer health risks when you are younger.
Moreover, men have a higher premium than women because they are more likely to be involved in riskier work, and because men are more inclined to such adventurous endeavours which could put them at a much greater risk.
Smokers are often going to pay three times as much on insurance premiums than non-smokers. This is self-explanatory since smokers are going to be exposed to much bigger health risks than those people who do not smoke.
If you are healthy you might scoff at the idea of getting life insurance. However, you might be surprised to know that insurance providers give big discounts and offer extra perks to those who are healthy. Do not wait for any serious illness to strike you before you get insured. Those who get insurance when they are at the best of health get the better deals.
Life insurance discounts are available through a number of reward and loyalty programs. Most insurers offer some form of discount or reward, but there are also a number of conditions to be met. Insurers usually combine some of the discounts mentioned below to encourage loyalty and in the hope that customers will take out larger or multiple policies.
One insurer might give you the best discount if you take out multiple high-benefit policies. A bank that offers insurance might encourage you to open an account with them in order to get the best deals. Here are some of the options available for lowering the cost of your life insurance: