Save with Insurance Policy Discounts

When you’re shopping for life insurance for the first time or looking for more affordable options, you might want to take advantage of the discounts and life insurance promotions on offer.

Life insurance discounts can be easy to qualify for, so be on the lookout for great deals. Use the below list of insurance policy discounts to help you save some serious money, while also protecting your financial future.

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What are life insurance discounts?

Generally, life insurance discounts are an easy way to lower your premiums and are especially useful when you’re on a tight budget. However, not all life insurance companies offer discounts, or might not implement it in the same way as terms and conditions vary from insurer to insurer.

It’s essential that you carefully review the company’s product disclosure statement (PDS) and ask your insurance broker if and how you can access the specific savings opportunity.

Compare some great life insurance deals

Insurance brand Initial discounts Apply
AIA
AIA Priority Protection
Initial selection discount for the first two years of your policy when purchasing a stepped premium type policy Get a Quote
AIA
Clearview LifeSolutions
A 10% New Cover Reward when joining ClearView LifeSolutions Get a Quote
MLC
MLC Insurance
Discounts when taking out multiple life insurance policies Get a Quote
NEOS
NEOS
Cover discount for new customers Get a Quote
Insurance brand Multi-policy Apply
AIA
AIA Priority Protection
Up to 12.5% Get a Quote
BT
BT Protection Plans
A discount of 5% on all Protection Plan premiums Get a Quote
MLC
MLC Insurance
Discounts when taking out multiple life insurance policies Get a Quote
AIA
NEOS
Multi-cover discounts of up to 10% Get a Quote
Zurich
Zurich Wealth Protection
Multi-policy discount when you have more than one eligible policy. 5% for 2 plans and a 7.5 discount for 3 or more policies. Get a Quote
Insurance brand Multi-life Apply
OnePath
OnePath OneCare
Multiple life discounts of up to 10% Get a Quote
Zurich
Zurich Wealth Protection
Receive a family discount of up to 10% when members of the same family take out Zurich life insurance Get a Quote
Insurance brand Large sum discounts Apply
AIA
AIA Priority Protection
A large sum insured discount of up to 30% Get a Quote
BT
BT Protection Plans
Save up to 30% on large sum insured policies Get a Quote
AIA
Clearview LifeSolutions
Up to 25.5% discount on large benefit amounts Get a Quote
AIA
NEOS
Large sum insured discounts Get a Quote
OnePath
OnePath OneCare
Large sum insured discounts Get a Quote
Zurich
Zurich Wealth Protection
Business discount when employees/partners in the same business take cover through Zurich Get a Quote
Insurance brand Healthy lifestyle Apply
AIA
AIA Priority Protection
AIA Vitality membership discount Get a Quote
BT
BT Protection Plans
BT My Wellbeing Rewards Get a Quote
AIA
Clearview LifeSolutions
ClearView Health Maintenance rewards Get a Quote
MLC
MLC Insurance
MLC OnTrack Get a Quote
AIA
NEOS
NEOS Preferred Lives Discount Get a Quote
TAL
TAL Accelerated Protection
TAL Health Sense Get a Quote
Zurich
Zurich Wealth Protection
Zurich LiveWell Get a Quote
Insurance brand More discounts Apply
AIA
AIA Priority Protection
  • Up to 5% loyalty discount for term level premiums
  • A bundled discount of up to 12.5%
Get a Quote
BT
BT Protection Plans
  • Policy fee waiver
  • Gain an extra 5% on your sum insured when holding your policy for 3 years
Get a Quote
CommInsure
CommInsure Protection
  • Receive a 10% discount on Business Overheads Cover premiums when combing it with an acceptable Income Protection policy
  • Automatically receive a 5% increase on your Life Care or Terminal Illness benefit when holding cover for 5 years
Get a Quote
MLC
MLC Insurance
  • Receive a 2-year policy discount (10% in the first year and 5% in the second year) when your broker submits your application through the MLC digital underwriting platform
  • Access Best Doctors and be connected with medical specialists around the world
Get a Quote
OnePath
OnePath OneCare
  • 5% discount when combining income protection with another eligible policy type
  • Earn 1 Qantas point for every dollar spent on eligible premiums
Get a Quote
TAL
TAL Accelerated Protection
  • Premium discounts when paying half-yearly or yearly
Get a Quote
Zurich
Zurich Wealth Protection
  • Your policy fee will be waived when you apply for more than one policy at the same time
Get a Quote

Source: Information was gathered from the brand’s product disclosure statement on 14 October 2019.

Take note: Life insurance discounts are not guaranteed and can change at any time. How discounts are implemented varies from insurer to insurer. Please review your product disclosure statement (PDS) for terms and conditions.

The different types of insurance policy discounts

Initial discounts for new policyholders

Some life insurance companies offer reduced premiums to new members purchasing an eligible policy.

Policy fee waiver

Certain companies won’t charge you for the administrative costs of setting up and maintaining your insurance policy.

Multi-policy discount

When you take out different types of cover, for example, TPD, life insurance and trauma, from the same insurer, you might receive a multi-policy premium discount.

Multiple life discount

Select insurers offer packaging discounts of 5% to 10% when eligible family members or business partners take out cover under the same application. However, some companies increase the discount as you add more people to the group.

Bundle insurance and save

If you take out a combination of eligible policies from the same insurer, for example, bundling life insurance with TPD and trauma cover, you might qualify for a premium discount.

Large sum insured discounts

When applying for a significant benefit amount, life insurance companies may offer you a discount on your premiums. A large sum discount is generally built into the price of the policy. For example, receive a 20% discount when applying for $1 million or more life insurance coverage.

Loyalty benefits

Select insurers will reward you for remaining a loyal customer. After you’ve held your policy for a specified period, your premiums could be reduced, or your sum insured might increase without you having to pay more.

Savings when paying premiums annually

You could save when paying you premiums annually, as many insurers apply a frequency charge, for example, you might pay 6% to 9% more when paying premiums monthly.

Healthy lifestyle discounts

Receive premium discounts and rewards when participating in an insurer’s health and wellness program.

  • AIA Vitality: Save up to 20% on eligible insurance policies. Receive free shopping vouchers and up to 50% back on flights from Virgin Australia.
  • Asteron Healthy Life Discount: Up to 20% off your premiums when completing a health assessment that yields a healthy BMI with normal blood pressure and cholesterol. You have the option between a Healthy Plus and Healthy Life option.
  • BT My Wellbeing Reward: Reduce your life insurance by 10% and get your policy fee waived when having a BMI of 28 or less.
  • ClearView Health Maintenance: Receive up to 10% discount on your premiums when completing a health survey.
  • MLC OnTrack: Reduce your life insurance by 5% when being proactive with your health.
  • NEOS Preferred Lives Discount: Get rewarded with a 7.5% discount on your premiums when having a BMI equal of less than 28.5 and not smoked for at least 3 years.
  • TAL Health Sense: Receive up to 15% off your insurance premiums when having and maintaining a healthy BMI.
  • Zurich LiveWell: Get up to 7.5% off your premiums when reaching Gold Status and living a physically and mentally healthy life.

Factors affecting how much you’ll pay for life insurance

Each insurer has its own underwriting guidelines by which they’ll assess your application. However, the factors they review will generally include your:

  • Age: Generally, the older you are when purchasing cover, the more expensive your premium.
  • Gender: Life insurance usually costs less for females than males, while income protection is generally lower for males. Insurer’s base these decisions on stats regarding mortality rates and incidences and duration of illnesses and injuries between men and women in Australia.
  • Smoking status: Premiums are generally more expensive for smokers than non-smokers.
  • Health: The state of your current health and medical history might affect the cost of your policy. If you have a pre-existing medical condition, for example, diabetes, you might pay a higher premium than someone who has no medical conditions.
  • Occupation: The greater your occupational risk, the higher your premium is likely to be. For example, people working in an underground mine will pay more for insurance than people that have a desk job.
  • Pastimes: If you partake in sports or hobbies that carry a high risk, your premiums will generally be more expensive — for example, skydiving rock-climbing and motor racing.
  • State of residence: The state and territory you live in might affect what you are charged for stamp duty and other government fees.
  • Cover type: Your choice of insurance policy (life cover, TPD, trauma cover or income protection insurance) and whether you purchase them as stand-alone policies or bundled together.
  • Sum insured: The higher your benefit amount; the more expensive your policy is likely to be.
  • Premium structure: The premium type you choose (stepped, level or hybrid) can also affect your life insurance cost.
  • Additional options: Most policy types allow you to add a range of options for an extra fee.
  • Frequency of payment: You can generally pay monthly, half-yearly or annually via credit or debit card or through your super fund. Annual payments might result in savings.
  • Premium discounts: If you’re eligible for a premium discount, you might save on the cost of your insurance policy(s).

How to get the best life insurance deals?

Shop around for the most affordable life insurance policy that includes the benefits and features you require. Compare quotes and tell an insurance specialist that you are looking to save a little extra money. Your broker will generally get to work to find the best available discounts for you.

Published: October 15, 2019

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