How you can save on Life Insurance

Have you ever found life insurance just that little bit too expensive? We take you through some of our top tips on how you can make your life insurance more affordable!

Choosing your premium style

Life Insurance is available in two premium styles – Stepped Premiums or Level Premiums.

The style you choose may be dependent on how long you intend to hold cover for.

Age Level of Cover 35 40 45 50 55 60
Level Premium/month $1 million 77.11 77.11 77.11 77.11 77.11 77.11
Stepped Premium/month $1 million 47.33 51.71 74.14 135.43 256.83 519.68

Please note while premiums are based on real life pricing they are examples only and may not reflect actual pricing available

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Consider cover inside super

The life insurance policies we compare can generally be taken out through your superannuation, meaning your super fund pays for the premiums. This can allow you to take out policies which may otherwise be unaffordable, such as a policy with Level Premiums, or to help you manage your cash flow.

Compare Quotes

By using a comparison service like us, you can compare the premiums from some of the leading insurers in Australia. We provide a comprehensive comparison report; detailing the premiums from each of those insurers so you can see the price differences.

Insurer Cover Amount Premium per month
Insurer 1 $1 million $77.11
Insurer 2 $1 million $82.72
Insurer 3 $1 million $82.76
Insurer 4 $1 million $83.05
Insurer 5 $1 million $88.29

Premiums based on 35 year old, white collar professional male on level premiums with $1 million worth of cover.

Please note while premiums are based on real life pricing they are examples only and may not reflect actual pricing available.

Only cover what you need

By making sure your life insurance only covers your needs, you can save on paying for unnecessary cover. If your mortgage is $1 million then a $2 million or $3 million life insurance may not be necessary.

Level of Cover Premium per month
$1 million $77.11
$1.5 million $112.16
$2 million $145.15
$2.5 million $179.69

Premiums based on 35 year old, white collar professional male on level premiums

Please note while premiums are based on real life pricing they are examples only and may not reflect actual pricing available

Take out cover early

The older you are when you take out cover, the more expensive your premiums will be, no matter what level of cover or premium style you select.

Age Level of Cover Premium
25 $1 million $58.88
30 $1 million $59.29
35 $1 million $77.11
40 $1 million $115.87
45 $1 million $186.38
50 $1 million $323.28

Please note while premiums are based on real life pricing they are examples only and may not reflect actual pricing available

Explore your options

While going to a direct insurer who doesn’t ask for any medical information may seem convenient, you may end up paying more for your policy!

Also, as they only assess your medical history at claim time, you find it difficult to claim if you have a pre-existing medical condition, meaning you had paid for a policy which you ultimately cannot claim on.

Direct Insurers are typically 25 – 80% more expensive than retail products.

Amount of
Cover
Retail
Insurer
Direct
Insurer
Insurer 1 $1 million $47.33 $58.26
Insurer 2 $1 million $47.93 $84.33
Insurer 3 $1 million $47.94 $88.53
Insurer 4 $1 million $50.27 $90.86

Please note while premiums are based on real life pricing they are examples only and may not reflect actual pricing available

Published: November 28, 2014
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