What is the average cost of a life insurance policy in Australia?

You can often get life insurance for less than $5 a week.

Father and son counting money

We looked at four different age groups (30, 40, 50, 60) for people looking for cover amounts of $200,000, $500,000 and $1,000,000 of life cover. Here's what we found:

How much does life insurance cost?

  • Around $4.40 per week for a 40 year old. This is based on $250,000 of cover for a male.
  • It's cheaper for females. Using the same details, a 40 year old female costs $2.81 per week vs $4.41 for a male ($250,000 in cover)
  • Prices will change with personal circumstances. The cost depends on a variety of different factors including your age, smoking status and how much cover you obtain.

Weekly cost of Life Insurance 2019

Prices shown in table are an average taken from the Finder quote tool and are for non-smoking office worker. These prices should only be taken as a rough guide. Rates last checked on October 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

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

Quickly get a life insurance quote for your needs from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Cooling-off
(days)
Expiry Age Short Description
Virgin Life Insurance - Tailored Cover
$1,500,000
65
$3,000
30
80
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.
AAMI Life Insurance
$1,000,000
60
$100,000
30
99
Get life cover up to $1 million.
NobleOak Life Insurance
$15,000,000
69
$50,000
30
99
Get two months free when you combine life insurance with another type of cover. T&C’s apply. Ends 20 December 2019.
Real Family Life Cover
$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™.
ahm Life Insurance
$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.
Medibank Life Insurance
$1,500,000
65
$100,000
30
No expiry age as long as premiums are paid
Get a quote & you could win a $1,000 eftops Gift Card. Offer ends 19 January 2020. T&C's apply.
nib Value Life Insurance
$1,000,000
65
$100,000
30
80
Receive one month's premiums off every year if you pay annually upfront. T&C’s apply.
Zurich Ezicover Life Insurance
$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.
Insuranceline Life Cover
$1,500,000
65
$100,000
30
99
Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&C's apply. Ends 31 March 2020.
Guardian 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.

Compare up to 4 providers

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$34.20
  • $7.84
$42.04
  • $74.42
$116.46
Clearview LifeSolutions$32.56
  • $7.75
$40.31
  • $80.99
$121.30
TAL Accelerated Protection$29.77
  • $9.28
$39.05
  • $81.22
$120.27
CommInsure Protection$35.07
  • $9.61
$44.68
  • $75.16
$119.84
Asteron Life Complete$35.19
  • $4.41
$39.60
  • $69.36
$108.96
MLC Insurance$31.00
  • $8.96
$39.96
  • $67.12
$107.08
OnePath OneCare$35.79
  • $7.99
$43.78
  • $73.63
$117.41
Zurich Wealth Protection$36.68
  • $8.96
$45.64
  • $70.52
$116.16
AIA Priority Protection$30.54
  • $4.66
$35.20
  • $70.13
$105.33
AMP Elevate$35.67
  • $5.24
$40.91
  • $71.01
$111.92
BT Protection Plans$39.74
  • $11.55
$51.29
  • $85.06
$136.35
Policy30 years old
  • Difference
40 years old
  • Difference
50 years old
AVERAGE$26.87
  • $8.37
$35.23
  • $59.87
$95.10
Clearview LifeSolutions$23.40
  • $10.68
$34.08
  • $65.68
$99.76
TAL Accelerated Protection$23.01
  • $9.29
$32.30
  • $66.88
$99.18
CommInsure Protection$28.82
  • $8.56
$37.38
  • $61.85
$99.23
Asteron Life Complete$28.62
  • $5.77
$34.39
  • $55.47
$89.86
MLC Insurance$24.18
  • $8.32
$32.50
  • $53.13
$85.63
OnePath OneCare$29.08
  • $7.99
$37.07
  • $58.44
$95.51
Zurich Wealth Protection$30.36
  • $8.42
$38.78
  • $56.73
$95.51
AIA Priority Protection$20.81
  • $6.35
$27.16
  • $55.75
$82.91
AMP Elevate$28.56
  • $6.05
$34.61
  • $58.00
$92.61
BT Protection Plans$31.81
  • $12.24
$44.05
  • $66.77
$110.82

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 2018.

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 2018.

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?

Life insurance calculator

Life insurance FAQs

Want a premium estimate? Simply fill out this form to speak to a 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

Read more:

Picture: GettyImages

Was this content helpful to you? No  Yes

Related Posts

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.

4 Responses

  1. 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 not allowed to provide specific recommendations, let me give you general information to help you make a better choice.

      Kindly check out this link to get tips and quotes from insurers that offer life insurance for seniors.

      I also suggest that you obtain expert advice from an insurance adviser and help you find the right policy for your father.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

  2. 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

Ask a question
Go to site