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All grown up: Millennials lead the pack in life insurance

Posted: 5 November 2020 4:21 pm

News

Data suggests 30-34 year olds are most likely to have a life insurance policy in Australia.

Millennials might get some stick in the media for being financially irresponsible but it seems the majority are actually pretty savvy when it comes to protecting their family and preparing for a serious illness, critical injury or even sudden death.

In fact, multiple sources suggest Aussies in their early 30s are the most likely to have an existing life insurance policy or be actively looking to buy one.

Firstly, independent research published in NobleOak's 2020 Life Insurance Whitepaper found that more than half (54%) of 30-34 year olds have a life insurance policy. That's the highest percentage of any age bracket.

Not only that, but Google Analytics data shows that 25-34 year olds were the most likely to visit Finder's pages on life insurance and income protection insurance.

For those that didn't have a life insurance policy, perceived cost was a major factor. In the NobleOak Life study, some 30% of respondents said price was the main reason they didn't have cover. However, the cost of life insurance might not be as high as you think.

Finder crunched the numbers, looking at eight different insurance brands across Australia. For a non-smoking 30 year old with no pre-existing medical conditions, the average price of a life insurance policy worth $500,000 was just $7.38 a week. For a 40-year-old, the average price rises to just $9.45 a week.

For income protection insurance, the average weekly cost was just $8.48 for a 35-year-old office worker to protect 75% of their $4,000 monthly income. Again, that's assuming they don't smoke and have no pre-existing medical conditions.

Of course, those prices can vary significantly depending on a few different factors, including your job, smoking habits, pre-existing health conditions, and the payout you'd like to receive - but for many people, it's surprisingly affordable to get decent cover.

Get a quote for life insurance

Request a quote from one of Finder's life insurance partners by using the table below.

1 - 7 of 7

Name	Maximum Cover	Maximum Entry Age	Terminal Illness Benefit	Claims Acceptance Rate	Average Claim Time	Sum Insured
NobleOak Life Insurance Finder Award	$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate. ⭐ Current offer: Get one month free for a limited time - apply by 21 December 2023. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
TAL Accelerated Protection Life Insurance Finder AwardBonus	No set limit	73	Not stated	Data not available	1 months	$249,285 million	Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older). ⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance	$2,500,000	70	$2,500,000	Data not available	Data not available	Data not available	Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance	$1,500,000	55	$1,500,000	Data not available	Data not available	Data not available	Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests required.	Get Quote View details	Compare	loading Fetching your data...
HCF Life Protect Insurance	$1,500,000	65	$1,500,000	Data not available	Data not available	Data not available	Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process. ⭐ Current offer: Eligible HCF Members receive 10% premium discount and HCF Thank You rewards.	View details	Compare	loading Fetching your data...
RAC Life Insurance Bonus	$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover Bonus	$1,000,000	64	$1,000,000	88.90%	2.4 months	$53,238 million	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout. ⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.	Get Quote View details	Compare	loading Fetching your data...