People often struggle to find cheap life insurance premiums for policies that provide value. There is little information on reasonably priced life insurance offered by trustworthy companies
Purchasing life insurance for the first time is even more difficult, especially when you are searching for the most affordable option right from the start.
Finding the cheapest life insurance companies in Australia has now become easier with Life Insurance Direct’s quote index. While it doesn’t cover the entire market, you are able to compare 32 term life insurance policies with the click of a button.
10 steps to finding the cheapest life insurance in Australia
I have endeavoured to list my 10 personal steps in order based on the savings potential, however please note the impact each step can have on any one person can be different therefore always best to consider all 10 of these steps when searching for more affordable rates.
Who has the cheapest term life insurance?
In our research we tried to include data from all three distribution options available to customers when selecting life insurance:
- Direct insurance: Obtained either through your bank, online or from a big brand
- Retail insurance: Acquired through a financial adviser and comparison website
- Group Polices: Procured through your Superfund or employer
It is important to note that our research was conducted on rates for term life insurance only and that you shouldn’t make a decision purely based on premiums. Always consider the entire policy before deciding which one is best for you and your family. Carefully review each policy’s benefits, exclusions and terms and conditions in their product disclosure statement.
Upon reviewing the data, we discovered the 10 cheapest life insurance quotes for 35-year-old males and females to be retail and group policies.
The above monthly premium rates were calculated on a 35 years old, non-smoking female, based in NSW, looking for $500,000 worth of term life insurance. Source: Life Insurance Direct Quote Index.
The above monthly premiums were calculated on a 35-year-old non-smoking male, based in NSW, looking for $500,000 worth of term life insurance. Source: Life Insurance Direct Quote Index.
How your sum insured affects your life insurance rates
Here’s a tip few people know about: The first $100,000 of life cover is the most expensive to purchase. Generally the greater your sum insured, the less you’ll pay per $1,000 worth of cover
For example, a 35 year old, non-smoking, female, purchasing a $1,500,000 policy will only pay $0.037 extra per month for every $1000 cover added. In comparison, if that same female purchased a smaller policy of only $300,000 it would be $0.072 per month more for every $1000 of cover added. That’s a significant difference of $0.035.
Data sourced from Average Retail Premiums from the 2016 Life Insurance Quote Index.
We have made it easy for you to access our research to help you find the cheapest term life insurance policies based on your particulars.
Remember do not base your decision solely on the cost of premiums. While you are searching for the most affordable policy, your beneficiaries should remain your priority. Ensure you do not compromise on the policy terms and conditions just because the premiums are cheaper. Be sure to read the Product Disclosure Statement and ensure it meets your needs before selecting a policy.
If you need further assistance, or if you have found cheaper premiums somewhere else in Australia please let us know below, and we will look to see if we can include them in next years research.