How much does life insurance cost in Australia? 8 brands reviewed | Finder

How much does life insurance cost in Australia?

According to our research, life insurance costs around $5 a week for a healthy 40-year-old.

Updated . What changed?

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Finder crunched the numbers across life insurance brands Australia, looking at four different age groups between 30 and 60 with $200,000, $500,000 and $1,000,000 of life insurance.

A healthy person at age 40 can expect to pay around $4.40 per week for a $250,000 life insurance policy in Australia. It's also generally cheaper for women, who might expect to pay around $2.80 a week for the same level of cover.

Must read: What is the cost of life insurance?

Life insurance costs vary person to person. While we've done our best to give you an idea of the price of life insurance, however, your own circumstances may impact those costs.

What is the average life insurance cost per week in Australia?

Finder researched 8 Australian direct brands to compare life insurance quotes. Below are the average costs for a non-smoker with no medical conditions, checked in December 2019.

Average life insurance rates for men

Amount Insured30-year-old40-year-old50-year-old60-year-old
$200,000$3.51$4.41$10.65$31.14
$500,000$7.38$9.45$23.67$69.13
$1,000,000$12.84$17.13$38.17$169.47

Average life insurance rates for women

Amount Insured30-year-old40-year-old50-year-old60-year-old
$200,000$2.49$2.81$6.57$16.30
$500,000$5.22$5.89$14.25$35.29
$1,000,000$9.97$12.73$27.95$107.61

Get a quote to see how much life insurance will cost you

Data updated regularly
Name Product Maximum Cover Maximum Entry Age Fully Underwritten? Terminal Illness Benefit Online application
NobleOak Life Insurance
$15,000,000
69
$3,000,000
⭐Finder Exclusive: Get a 10% discount on your first 12 months with NobleOak Life Insurance. Offer ends 31 March 2021. T&Cs apply.
Real Family Life Cover
$1,000,000
64
$1,000,000
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
Medibank Life Insurance
$2,500,000
70
$2,500,000
You could win a $2.5K EFTPOS gift card when you get a Life Insurance quote by 27 April, 2021. There are 3 prizes of $2.5K to be won. Plus, Medibank health members save 10% every year. T&Cs apply.
Zurich Ezicover Life Insurance
$1,500,000
69
$1,500,000
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.
AAMI Life Insurance
$1,500,000
65
$1,500,000
Get 5% off for existing customers and get 12 months life insurance cover for the price of 11.
ahm Life Insurance
$1,500,000
65
$1,500,000
ahm Health members can save 10% off premiums.
Suncorp Life Protect Insurance
$1,500,000
65
$1,500,000
Sign up and become a member of Suncorp Benefits. Access savings of up to 15% from major retailers. Existing members can get a 5% discount off their policy.
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What affects the cost of life insurance?

There are several factors which insurers consider when determining how much you will pay for life insurance:

  • Age. The older you get, the greater the risk you become to the insurer and the more you will pay for your life insurance. For this reason, many people opt for level premiums (remain the same for the life of the policy).
  • Gender. Males and females are assessed differently by insurers, with females generally seen as lower risk than males.
  • Occupation. What you do for a living can affect how much you pay for life insurance. If you are an underground miner for instance, you are considered to be in a high risk occupation.
  • Lifestyle. The things you do in your spare time can also have an influence on your risk rating. If you pursue risky pastimes such as rock climbing or driving fast cars, then your premiums may be higher.
  • Current medical condition. If a policy covers your medical condition they may increase your premium in some cases.
  • Past medical history. Any pre-existing medical conditions you have or have had in the past can affect your premiums.
  • Amount and period of cover required. The greater the amount and the longer the period, the higher your premiums will be.
  • Smoking status. If you are a smoker, you are seen as high risk and will pay more for your premiums. Some brands will reduce your premiums if you give up smoking for at least 12 months.

Male non-smoker

Age$200,000 coverage$500,000 coverage$1,000,000 coverage
18$6.16$12.89$23.40
19$6.26$13.06$23.46
20$6.03$12.59$22.63
21$5.80$12.09$21.76
22$7.02$11.81$20.00
23$5.46$11.44$20.74
24$4.96$10.69$19.35
25$4.95$10.36$18.75
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
26$4.79$10.03$18.14
27$4.67$9.77$17.66
28$4.55$9.66$17.44
29$4.45$9.44$17.03
30$4.43$9.38$16.91
31$4.44$9.41$16.95
32$4.46$9.47$17.06
33$4.57$9.86$17.25
34$4.65$9.77$17.64
35$4.79$10.10$18.18
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
36$4.96$10.54$18.99
37$5.19$11.09$19.98
38$5.40$11.56$20.84
39$5.72$12.22$22.05
40$6.03$12.95$23.36
41$6.48$13.93$25.14
42$6.98$15.04$27.13
43$7.50$16.22$29.28
44$8.10$17.59$31.75
45$8.89$19.34$33.60
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
46$9.84$21.48$37.34
47$10.94$23.92$41.62
48$12.16$26.66$46.45
49$13.57$29.79$51.97
50$15.23$33.51$58.52
51$17.13$37.72$65.99
52$19.29$42.52$74.55
53$21.71$47.88$84.15
54$24.45$53.96$95.07
55$27.68$55.39$102.86
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
56$31.10$62.38$112.26
57$34.83$70.03$126.50
58$39.28$79.12$144.03
59$44.26$89.37$163.81
60$49.57$106.78$195.38
61$57.11$122.21$175.78
62$65.34$139.87$203.23
63$74.37$159.29$230.96
64$83.54$179.14$251.20
65$94.85$170.70$287.52
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
66$118.52$180.65$332.16
67$134.75$206.59$387.61
68$151.63$233.29$439.18
69$190.29$266.39N/A
70$212.28$267.81N/A

Female non-smoker

Age$200,000 coverage$500,000 coverage$1,000,000 coverage
18$3.83$7.95$14.40
19$3.69$7.67$13.74
20$3.65$7.59$13.60
21$3.57$7.36$13.19
22$3.57$7.34$13.21
23$3.45$7.09$12.72
24$3.36$6.89$12.34
25$3.32$6.80$12.17
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
26$3.33$6.80$12.18
27$3.32$6.79$12.15
28$3.35$6.85$12.27
29$3.36$6.87$12.31
30$3.41$6.99$12.52
31$3.45$7.60$12.71
32$3.52$7.24$12.98
33$3.60$7.67$13.32
34$3.70$7.69$13.77
35$3.79$7.93$14.26
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
36$3.97$$8.27$14.85
37$4.13$8.63$15.50
38$4.28$8.99$16.15
39$4.43$9.34$16.79
40$4.70$9.92$17.83
41$5.00$10.55$19.03
42$5.36$11.41$20.55
43$5.73$12.29$22.14
44$6.17$13.24$23.88
45$6.77$14.56$25.35
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
46$7.41$16.02$27.93
47$8.22$17.79$31.08
48$9.05$19.64$34.34
49$9.92$21.58$37.76
50$10.71$24.12$42.25
51$12.33$26.89$47.15
52$13.60$29.71$52.18
53$15.00$32.81$57.72
54$16.75$36.64$64.57
55$18.69$37.35$69.49
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
56$$20.86$41.81$75.53
57$23.07$46.33$84.02
58$25.64$51.60$94.13
59$28.78$56.76$106.78
60$31.77$68.19$122.54
61$35.79$76.33$110.07
62$40.52$86.37$126.99
63$45.70$97.33$144.73
64$63.43$108.10$145.01
65$57.11$99.89$161.09
Age$200,000 coverage$500,000 coverage$1,000,000 coverage
66$72.12$108.40$184.38
67$82.06$123.63$205.73
68$93.12$140.50$229.85
69$118.40$165.14N/A
70$127.25$159.88N/A

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How does your age impact your premium?

If your premiums are rising and your level of cover has stayed the same, you're most likely on a policy with stepped premiums. This means each year the insurer will recalculate your premiums based on your current level of risk, which let's face it, increases as you get older.

Keeping your premiums affordable

Luckily, your cost is not all that changes as you age. There's also a good chance that you've paid down the mortgage and your kids are becoming more independent. If that's the case, you can consider decreasing your level of cover. That will bring your costs down and counteract the age-related price increases you've been experiencing.

Simply review your financial situation and get in touch with your insurer.

How much does your age affect the cost of cover?

Cost is affected by your age both at the time you buy a policy (the older you are the higher your quoted) and over time e.g. as you get older the amount you pay monthly may increase. We analysed the monthly cost at the time of purchase for a life insurance policy with $500,000 in death cover and $200,000 in total and permanent disability insurance below.

Here's the cost breakdown

Policy30 years old
  • Difference
40 years old
  • Difference
50 years old
AVERAGE$33.21
  • $6.53
$39.74
  • $66.41
$106.14
Clearview LifeSolutions$32.61
  • $8.05
$$40.66
  • $66.62
$107.28
TAL Accelerated Protection$34.09
  • $5.18
$39.27
  • $66.51
$105.78
MLC Insurance$31.86
  • $9.43
$41.29
  • $69.90
$111.19
OnePath OneCare$32.79
  • $6.94
$39.73
  • $64.36
$104.09
Zurich Wealth Protection$32.21
  • $7.69
$39.90
  • $58.94
$98.84
AIA Priority Protection$30.54
  • $4.66
$35.20
  • $70.13
$105.33
AMP Elevate (Members only)$35.78
  • $5.24
$41.02
  • 71.01
$112.03
BT Protection Plans$35.78
  • $5.05
$40.83
  • $63.78
$104.61
Policy30 years old
  • Difference
40 years old
  • Difference
50 years old
AVERAGE$26.79
  • $6.61
$33.40
  • $53.05
$86.46
Clearview LifeSolutions$24.59
  • $6.73
$31.32
  • $61.26
$92.58
TAL Accelerated Protection$26.40
  • $6.83
$33.23
  • $52.75
$85.98
MLC Insurance$25.04
  • $8.79
$33.83
  • $55.91
$89.74
OnePath OneCare$26.75
  • $6.94
$33.69
  • $50.68
$84.37
Zurich Wealth Protection$27.99
  • $7.39
$35.38
  • $49.68
$85.06
AIA Priority Protection28.68
  • $0.98
$29.66
  • $46.08
$75.74
AMP Elevate (Members only)$28.67
  • $6.05
$34.72
  • $58.00
$92.72
BT Protection Plans$26.21
  • $9.19
$35.40
  • $50.06
$85.46

We calculated the average monthly costs based on life insurance policies in our quoting engine. The prices shown in tables are an estimate and were generated in July 2020.

Here's the cost breakdown

Males

Females

We calculated the average monthly costs based on life insurance policies in our quoting engine. The prices shown in tables are an estimate and were generated in July 2020.

Promoted
Fully underwritten with Trauma and TPD options. NobleOak offer up to $15 million maximum cover level.

Premium structures: Stepped or level

When you taking out cover, you usually have a choice of stepped or level premiums. Which structure you choose will impact how much you pay.

Stepped premiums

Stepped premiums are premiums that are recalculated by the insurer yearly as you get older and your level of risk increases. Stepped premiums are more advantageous when you are younger, because they are cheaper than level premiums, but as you get older they will become more expensive (and more difficult to pay).

Level premiums

Level premiums are averaged out over the life of the policy so that you pay the same amount every time. Level premiums are less advantageous when you are younger as they are higher than stepped premiums, but as time goes by, they will become less burdensome as your income will also increase over time.

You should seek professional advice before committing to one or the other however, as their benefits will depend on your particular circumstances.

How much life insurance do you need?

Working out exactly how much life insurance you need is not an easy task. In order to determine your cover needs, you'll need to take a number of factors into account:

  • Your income.
    • If you're unable to work due to illness, injury or death how would your family cope with out your income? Make sure you life insurance policy is enough to replace your income for the foreseeable future.
  • Your dependents.
    • If you have people that are financially dependent upon you, you need to take into account their ongoing expenses and think about how they'd be affected by the loss of your income.
  • Your expenses.
    • Do you have a mortgage, car loan, credit card or other debts? Calculate the ongoing expenses your family will need to be able to pay in order to maintain their lifestyle?
  • Your assets.
    • Consider any assets you may have accumulated, for example shares, savings or investment properties. Do you want your family to live off these or would it be more prudent to provide them with enough cover so that they could keep these investments?

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4 Responses

    Default Gravatar
    AndreaApril 30, 2018

    Looking at life insurance for my 76 year-old father with a payout of $400 000 -$500 000. Non smoker. Thanks.

      Avatarfinder Customer Care
      JeniApril 30, 2018Staff

      Hi Andrea,

      Thank you for getting in touch with Finder.

      While we are unable to provide you with a direct quotation, you may visit our page to check on policies available for seniors (individuals aged 60 and above). The features you may want to look for in life insurance should be discussed on the page, the type of cover available, what affects the price of the cover among others. The table on that page should allow you to compare the maximum cover, maximum entry age, expiry age, etc. You can start comparing quotes between insurers by clicking on the “Get Quote” button.

      As a gentle reminder, please ensure you review the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

    Default Gravatar
    LieuNovember 18, 2016

    I am an Australian Citizen but permanently living outside of Australia, Will I still can claim my life insurance?

      Avatarfinder Customer Care
      RichardNovember 21, 2016Staff

      Hi Lieu,

      Thanks for getting in touch. You should contact your insurer, as claim conditions can vary between insurers. Some insurers have a maximum of 5 years for Australian expats wanting to claim.

      All the best,
      Richard

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