Cheap Life Insurance Australia: Compare Affordable Cover in 2026
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What Is the Cheapest Life Insurance in Australia?
Although there isn’t a single affordable life insurance policy available, you can find cover that may suit your current financial situation. Premiums are generally calculated based on several factors, including:
- The level of cover you opt for
- Whether you’ve opted for Variable Age-Stepped or Variable premiums
- Added features and benefits like child cover
- Your age, gender and where you live
- Your smoking status
- Your health and lifestyle
- Any healthy lives discounts which may apply
- Any New Customer discounts that may apply
Compare Cheap Life Insurance Premiums in 2026
| Insurer | Variable Age-Stepped, Male | Variable Age-Stepped, Female | Variable Premium, Male | Variable Premium, Female |
|---|---|---|---|---|
| Clearview | $25.15 | $20.58 | $119.98 | $101.25 |
| NEOS | $26.93 | N/A | $165.53 | $128.01 |
| Encompass | $28.77 | $21.81 | N/A | N/A |
| Acenda | $29.44 | $23.82 | N/A | N/A |
| MetLife | $30.57 | $24.04 | $152.89 | $112.61 |
| TAL | $34.10 | N/A | $125.31 | $90.26 |
| AIA | $35.54 | $28.66 | $162.53 | $114.83 |
| OnePath | N/A | N/A | $148.75 | $104.59 |
| Zurich | N/A | N/A | $146.13 | $110.62 |
Source: Life Insurance Direct Comparison Engine (August 2026; Premium estimates for $500,000 of life insurance for a 45-year-old non-smoking individual with no pre-existing health conditions residing in NSW; life insurance premiums do not include any healthy lives discounts)
How Much Does Cheap Life Insurance Cost?
The cost of life insurance in Australia can vary depending on your requirements. If you’re a 45-year-old female who wants $500,000 of life cover, you could pay $20.58 monthly on a variable age-stepped premium. If you were a 55 year-old-male applying for $1,000,000 of life cover, you may expect to pay from $162.44 monthly on a variable age-stepped premium.
To get a clear idea of what life cover could cost, it’s generally better to compare your options first. It’s also a good idea to look beyond cost and consider the value different insurance brands offer. Certain policy features and benefits may matter to you but offer less value to someone at a different life stage.
How Much Does $500,000 of Life Insurance Cost?
If you are a non-smoking 45-year-old male with no pre-existing conditions residing in New South Wales, cover options may start from $25.15 per month, depending on the policy and insurer you choose. For the equivalent cover, a 45-year-old female may expect premiums to start from $20.58 per month, depending on her circumstances.
How Much Does $1 Million of Life Insurance Cost?
45-year-old males with no pre-existing conditions may expect premiums for $1 million of life cover to start from $44.64 monthly on a variable age-stepped premium. For a woman, the same type and level of coverage would start from $36.53 monthly.
How to Get Cheaper Life Insurance
If you are looking for affordable life insurance in Australia, there are typically several steps you can take to find cover to suit your requirements; these include:
- Compare premiums, features, and benefits across several leading brands.
- Opting for a lower level of cover may help to reduce your premiums; look at how much coverage you really require and adjust your sum insured accordingly.
- When you buy cover, you may have added features and benefits included in your policy which you pay for; review your benefits to make sure you’re only paying for features that suit your requirements.
- Review your premium structure carefully. Variable age-stepped premiums often start lower and increase as you age. Variable premiums aren’t recalculated based on your entry age each year but may still increase if you change your sum insured, or if there are policy fees or base rate changes.
- Consider annual payments as you may be able to get a discount of between 6 and 9% if you qualify.
- Don’t wait to review your life insurance; you may be paying for cover that no longer suits your requirements. Reviewing your cover regularly can help keep it more affordable over time.
- Stop smoking; often smokers pay higher rates than non-smokers. If you stop smoking, then you may be able to review your cover to find a more affordable option.
- Consider funding the policy using your super, by rolling the relevant life insurance premiums out of your super to pay for your premiums (making the policy tax deductible to your superfund, and helping your cash flow).
Can couples get cheaper life insurance together?
Yes, couples can apply for life insurance together. A joint life insurance policy may offer more affordable premiums, as you may be able to share policy fees, qualify for partner discounts, and bundle prices. However, in some cases, two separate policies may be the right option for you and your partner. Review your circumstances before choosing a couples life insurance policy.
Cheap life insurance for seniors
When you reach your 50’s and beyond, your financial priorities often change and budgeting becomes more important than ever. An affordable life insurance policy for seniors may have a slightly lower sum insured and features and benefits that work for your current situation. Reach out to us and one of our specialist life insurance brokers will help you compare your options.
Is Life Insurance Cheaper Through Super?
Typically, buying life cover through your Super is not cheaper than going direct. Paying through your super may help your immediate cash flow situation as the premium is typically deducted from your Super balance and premiums are tax deductible to your superfund. However, paying your life insurance premiums through super will erode the balance and may impact your retirement savings. Carefully consider the pros and cons of life insurance through super before deciding.
Is the Cheapest Life Insurance Always the Right Choice?
When choosing a life insurance policy, it’s often a good idea to consider the value that the policy offers you, not just the price. A cheaper life cover option may not include all of the features and benefits you require. Before you buy cover, consider your cover amount, policy definitions, built-in benefits, paid features and benefits, and entry and exit ages.
Should You Switch to a Cheaper Life Insurance Policy?
In some circumstances, you may be able to save on your life insurance premiums by switching life insurance providers. However, consider a few things first. When you switch insurance providers, you typically reset your duty to take reasonable care; this means you’ll need to disclose any health- or lifestyle-related factors that may be relevant. Failing to comply with your duty to take reasonable care may lead the insurer to avoid the policy, reduce benefits, or decline future claims.
You may also face new waiting periods, loadings or exclusions when you switch insurers. Review your current cover first, as switching providers for affordability may not always be in your best interest.
If you do decide to switch to a new life insurance provider, it’s generally a good idea to wait until your new cover is fully in place before you cancel your old policy.
Frequently Asked Questions and Answers
What is the cheapest life insurance in Australia?
There is generally no single cheapest life insurance policy available in Australia. However, you may find cover that suits your budget by comparing options. Factors such as cover type and amount, premium type, age, gender, location, and specific lifestyle factors all affect life insurance premiums.Is cheap life insurance good?
Whether a life insurance policy is a good option for you or not will generally depend on your personal circumstances. It’s typically a good idea to compare all of the features and benefits of a policy and whether they are right for you before deciding.Can I get cheap life insurance as a smoker?
As a smoker, you will generally pay higher premiums for your cover compared to non-smokers. Quitting smoking could help you reduce your life insurance premiums. If you’ve been successfully nicotine-free for 12 months, you may be able to qualify for more affordable life cover options and or ask your current insurer to review moving you to non-smoker rates.Is life insurance cheaper through super?
No, buying life cover through your super may free up some money in your monthly budget; however, it’s generally not cheaper than paying for your life insurance personally. It’s also important to note that paying for your cover through super will reduce the money you have available for retirement, as the premiums are paid from the balance on your super fund.How can I lower my life insurance premium without reducing my cover?
If you want to reduce the cost of your cover without lowering your sum insured, you can take a few steps. Review your existing cover to check whether you’re paying for features and benefits you don’t use. Consider shopping around a number of insurer offer new customer & healthy life discounts which can be substantial. Alternatively, you could switch from monthly to annual premium payments to qualify for a small discount, depending on your insurer.
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Or call us on:
1st question:
Do you think I can save much by switching from my current insurer (whom I’ve been with for more than 20 years)?
My details:
Male
Non-smoker
57 years old
Cover till age of 99
Amount of cover – $630k – both Death + TPD
Monthly Premium – $550
Using the online comparison system, I found a policy for a premium of $373 pm – 32% cheaper than I’m currently paying
– but I’m not comparing apples with apples – this cover is only until age of 70.
2nd question:
I was surprised to findout my existing cover lasts until I am 99 – which means it will definitely be paid out one day – which means I don’t understand how the insurer can make any money on a policy like this? Am I missing something?
Hi Mark.
As you stated above, you could possibly save 32% on a similar policy, but it expires at age 70. Whether this is a better option for you depends on your requirements, for example, many people don’t feel like they need as much life insurance when over the age of 70 (especially if their mortgage is paid and kids have left home) and will thus prefer a policy that only covers them until that age. Remember, if you have a stepped premium style policy your premiums will increase each year as you age, which might not be affordable when on a budget. Please give us a call on 1300 135 205 and an insurance specialist can assist you with comparing apples-to-apples policies.