Cheap Life Insurance In Australia; Whether you’re a new buyer or looking to increase the value of an existing policy, there are several helpful tips to help you find cheap life insurance in Australia that fits your budget.
However, it can be challenging to find the most affordable option, especially if you are not familiar with the factors that affect the cost of life insurance. It is critical to keep in mind that each individual has unique requirements that can affect the insurance premium. Here in this guide, we have helped you with 10 steps to cheap life insurance in Australia.
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10 Steps to Cheap Life Insurance In Australia
These tips are prioritized based on their potential to help you save money on your premiums. Keep in mind that the impact of each tip may vary depending on your individual circumstances, so it’s important to consider all 10 strategies when looking for an affordable policy.
From applying for coverage at a young age to avoiding policy fees, these tips cover a range of proven strategies that can help you find the most cost-effective life insurance policy to meet your requirements.
1. Apply For Coverage at Young Age
Life insurance premiums are based on several factors, including your age and health, and companies will often base their premiums on mobility and mortality rates (ie: your age affects your likelihood of illness or premature death). This means that the younger you are when you apply for coverage, the cheaper your premiums are likely to be.
In fact, when you’re young, you’re probably in the healthiest phase of your life, and as you get older, your health tends to decline. That’s why it’s important to consider getting a life insurance policy as soon as possible while you’re still healthy and premiums are more affordable. Keep in mind that life insurance costs tend to increase as you age, so it’s best to secure coverage while you’re still in your prime.
2. Look around
There are 3 main distribution channels in Australia. Get multiple comparison quotes from any channel. Premiums can range from 10-150% more expensive when comparing like for like:
- Direct: Obtained through your bank, online, or from a major brand
- Retail: Acquired through a broker and/or comparison website
- Group: Obtained through your Superfund or employer
3. Consider level premiums
When it comes to finding affordable life insurance, a policy with flat premiums is one option to consider. With flat premiums, the premium amount remains consistent over the life of the policy, making it easier to budget for costs. However, it is important to consider how long you want to keep the coverage. If you only need short-term coverage, graduated premiums may be a more affordable option. It’s always a good idea to compare graduated versus flat premiums and project costs over the expected term of the policy to find the option that best suits your needs and budget.
4. Quit smoking
If you smoke, your premium rates will be higher. Quitting smoking can reduce your premium by as much as 30 to 50%.
5. Discounts on a healthy lifestyle
Recently introduced to the life insurance industry are the rebates and benefits for a healthy lifestyle that can have a major effect in reducing your premiums by up to 20%
- TAL Feeling of health
- MetLife Healthy living
- AIA Vitality and Healthier Living Reward
- NEOS preferred
- MLC Vivo
- Clearview Health Rewards
6. Annual Premiums
You can save 5-8% on your premiums as most companies charge you more for paying your premiums monthly or biweekly.
7. 15% tax credit
A 15% tax credit is generally available for your super fund if you finance a Retail policy from your existing super fund, so you don’t miss out on the 15% tax refund you would have received if you paid directly from an SMSF or group policy of the super fund.
8. Discounts on multiple policies
You can save on premiums by purchasing multiple policies from the same company. For example, if both you and your partner take out a policy with the same insurer, you can receive a discount on your premiums of up to 10%.
9. Combined or Linked Benefits
You’ll usually receive additional discounts when you purchase multiple types of coverage on the same policy from the same company. These policies are cheaper than standalone policies.
10. Avoid policy fees
Consider insurers/policies that have removed policy fees from their premium calculation. For example, MLC Insurance and Clearview ClearChoice.
Cheap Life Insurance In Australia
| Ranking | Policy | Monthly Premium |
| 1 | MLC Life Cover (Vivo Incentive) | $29.79 |
| 2 | MetLife Protect Life Cover with Healthy Lives | $30.73 |
| 3 | OnePath OneCare Life Cover | $31.48 |
| 4 | MLC Life Cover | $32.21 |
| 5 | Neos Protection Life Cover Preferred | $32.67 |
| 6 | Tal Accelerated Protection (Health Sense Discount) | $34.11 |
| 7 | MetLife Protect Life Cover | $34.14 |
| 8 | Clearview ClearChoice | $34.48 |
| 9 | Neos Protection Life Cover | $35.32 |
| 10 | Tal Accelerated Protection | $37.71 |
It is important to note that our research was conducted solely on term life insurance rates and that you should not make a decision based solely on premiums. Always consider the entire policy before deciding which is best for you and your family. Please carefully review the benefits, exclusions, and terms and conditions of each policy in your product disclosure statement.
Reviewing the data, we found that the 10 cheap life insurance Australia quotes for 35-year-old men and women are both retail and group policies.
How Your Sum Insured Affects Your Life Insurance Rates
Here’s a tip few people know about the first $100,000 of life coverage is the most expensive to buy. In general, the higher your sum insured, the less you’ll pay for each $1,000 of coverage. For example, a 35-year-old non-smoker who purchases a $1,500,000 life insurance policy will only pay an additional $0.27 per month for each $1,000 coverage added. By comparison, if that same woman bought a smaller solo policy.
Remember that it is generally best not to base your decision solely on the cost of premiums. As you search for the most affordable policy, your beneficiaries should remain your priority. Make sure you don’t compromise on the terms and conditions of the policy just because the premiums are cheaper. Be sure to read the Product Disclosure Statement and make sure it meets your needs before selecting a policy.
FAQ – Cheap Life Insurance Australia
Will my life insurance premium stay the same?
This generally depends on whether your premiums have a tiered or level premium structure. Level premiums are more expensive upfront, but generally don’t increase over time. If you opt for a tiered premium policy, you may pay less upfront, but your premiums will be more expensive. Use Life Insurance Directs premium projection feature to find out how your premium may change over time.
Can I cancel my life coverage if I can’t pay for it?
Yes, you can generally cancel your coverage if you can no longer pay the premiums. However, there are usually several options available to you that may allow you to keep your coverage and continue to protect your family. Some options may include speaking with a specialist to assess your requirements, comparing quotes from different insurers, or freezing your premiums.
Conclusion – Cheap Life Insurance In Australia
These tips are prioritized based on their potential to help you save money on your premiums. Keep in mind that the impact of each tip may vary depending on your individual circumstances, so it’s important to consider all 10 strategies when looking for Cheap Life Insurance In Australia for an affordable policy.