How you can save on Life Insurance

Everyday clients come to ask saying their life insurance premiums are too high and how can we help them? Through our expertise, we know there are a number of steps you can take to help reduce your life insurance premiums:

Step 1: Compare Quotes

Step 2: Cover what you need

Step 3: Consider your premium style

Step 4: Life insurance inside superannuation

Step 5: Check your options before going direct

Step 1: Compare Quotes & Save!

We compare some of the leading insurers in Australia. Each insurer offers a number of different products, benefits and options at a range of prices. By comparing quotes, you can find the policy that suits your budget and circumstances.

30 year old, male, non-smoker, Level Premiums

Insurer Cover Amount Annual Premium
Insurer 1 $1,000,000* $554.04*
Insurer 2 $1,000,000* $563.04*
Insurer 3 $1,000,000* $585.84*
Insurer 4 $1,000,000* $595.56*
Insurer 5 $1,000,000* $597.36*

Step 2: Only cover what you need – Saving of 27%!

The first and most important thing you need to consider is how much cover do you actually need? Do you really need $1 million worth of cover or is $600,000 enough? Answering this question first will help you make sure you are not under or over insured.

Based on 30 year old, male, non-smoker with level premiums

Cover Amount Annual Premium
$1,000,000* $554.04*
$900,000* $552.48*
$800,000* $498.60*
700,000* $460.44*
$600,000* $404.40*

Step 3: Consider your premium style

Level Premiums do not increase due to a change in your age, generally making them more affordable in the long run. They may increase due to inflation or base rate premium changes.

However Stepped Premiums, which do increase as you age, are generally cheaper in the short term. The premium style you choose may be dependent on whether or not you are looking for short or long term affordability.

Age 30 35 40 45
Level Premium $581.88* $581.88* $581.88* $581.88*
Stepped Premium $460.44* $494.64* $573.24* $803.52*

Step 4: Life Insurance inside super

You can save money by taking out cover within super. While this may affect your long term retirement savings, it can help free-up present day cash flow if it’s needed, as you won’t be funding your premiums out of your post-tax income.

Step 5: Check your options before going direct – Saving of 10%!

Direct Insurers often highlight the ease of applications, the ability to apply straight away either online or over the phone, and no need to submit medical information.

However, Direct Insurers can in some cases be double the price of the products we compare and will always ask for medical information at claim time.

Product Direct Insurer IFA Product
Annual Premium $702.26* $629.88*

*Please note that while premium and saving amounts are based on real quote examples, they are examples only and may not be indicative of actual cover or savings available.