Average Cost of Life Insurance: It’s NOT as Expensive as You Think

The cost is always a factor, but the average cost of Life Insurance may surprise you.

Most of us are aware of the benefits of having life insurance. Getting one and paying monthly premiums do not have to change your family’s lifestyle. In fact, insurance makes sure that your family’s lifestyle will not change should something untoward happen to you.

In spite of being aware of its advantages, however, only half of Australians have life insurance in some form. The number one reason why some people are reluctant to get one is that they think it’s too expensive. But then, we have to think: car insurance protects the car. House insurance protects the house. Why not get life insurance? After all, it is only fitting to protect the one that matters the most: You.

How Much Does It Cost?

Price is the number one factor for Australians when it comes to buying insurance, according to a study done by NobleOak in 2018. Although the cost of an insurance premium depends mainly on your coverage and risk factor, it is still affordable for most Australians. For example, for just under $29 monthly, you could get life insurance that will cover you in the event of life-changing or career-ending occurrences.

The cost of life insurance is dependent on several factors. Your age, gender, and whether or not you smoke are big influences as well.

For instance, a non-smoking female in her 30s will pay around $25-$36 every month on a $500,000 life insurance benefit. On the same policy, a non-smoking male in his 30s will pay somewhere between $30-$42 monthly premium.

To give you a rough guide of the average annual cost for $500,000 coverage payable in monthly, quarterly, every half year or yearly basis:

  • 30-year-old non-smoker: $297.44 for male, $208 for female
  • 40-year-old non-smoker: $371.28 for male, $283.40 for female
  • 50-year-old non-smoker: $1,036.36 for male, $757.12 for female

Take note that your insurer may recalculate your premiums every year. It will make a slight increase in your payments. The reason is that as you get older, your risk level also increases.

Compare The Best Life Insurance Plans For You!

Is it Possible to Lower the Premiums Some More?

Yes, it is. The simplest thing you can do to lower your insurance premium is to determine exactly what you need. Ask yourself: what type of insurance fits you best? How much cover do you need?

Deciding to avoid extras could also lower your monthly premium. If you could eliminate add-ons that you are not keen on, then do it. If you believe a basic life cover is just what you need, then ditch the supplementary trauma cover.

Another thing you can do is to review your financial situation. You may find yourself in a situation where you can afford to decrease your coverage level. Perhaps your children may have become more independent, or you have paid down the mortgage.

Finally, compare and review multiple insurance costs. You can do it with the help of an insurance adviser. You may also make an online enquiry from different insurance companies.

Alternatively, you could consider getting an insurance quote with the use of online life insurance comparison tool, like what we have on our website. You’ll be able to select the best life insurance that will suit you.

Compare The Best Life Insurance Plans For You!

Have you considered switching your life insurance policy? Use our Life Insurance comparison service today.

Makes Cents has an easy form that you can quickly fill out to receive your comparison within minutes. What’s more is this will be personalised to your current profile to give you the best quote.

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