Life Insurance
  • How Much Does Life Insurance Cost?

How Much Does Life Insurance Cost?

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At Direct Cover, we know that life insurance can seem overwhelming, which is why we’re dedicated to guiding our customers through the process. One of the first questions on many people’s minds is how much life insurance will cost, and how that cost might fit into their budget. We can offer straightforward cover to help protect the life you’ve built, but if you’re not sure where to start, we’re here to explain what goes into the price of a policy. Below, we’ll look at some of the key factors that can impact the cost of your life insurance, so you can make an informed decision.

What factors affect my premiums?

Age

One of the most significant factors that influence the cost of life insurance in Australia is age. Younger people typically pay lower premiums compared to their older counterparts. This is because younger people are considered to be at lower risk of experiencing health issues. As you age, the cost of life insurance tends to increase, so it’s a good idea to consider purchasing a policy earlier for lower starting premiums.

Cover Amount

The amount of cover you choose impacts the cost of your life insurance premiums. A higher benefit amount means a higher premium. When deciding how much cover you need, think about your financial obligations, such as mortgage payments, outstanding debts, education expenses for your children, and any income you might need to replace. It's important to strike a balance between getting enough cover to protect your loved ones, while still being able to afford your fortnightly or monthly payments.

Gender

Gender can also impact the cost of life insurance in Australia. Usually, women have lower premiums than men because they tend to live longer and have lower mortality rates.

Health, Lifestyle and Smoker Status

Your health and lifestyle can play a big part in determining the cost of your life insurance. When you apply for Direct Cover Life Insurance, we’ll ask you some questions about your health history and lifestyle to determine the cost of your cover. You won’t need to get a medical or blood tests, but it’s important that we consider certain details. For example, non-smokers can enjoy lower premiums.3

If I quit smoking, will this reduce my premium?

The good news is, if you quit smoking, this could reduce your premium after you've been smoke-free for an agreed period. Quitting smoking could save you money on life insurance and improve your health and well-being in the long run.

How can I make my premiums cheaper?

While the cost of life insurance is influenced by various factors, there are a few things you can do to keep your premiums manageable.

  • Maintain Good Health: Leading a healthy lifestyle, including regular exercise and a balanced diet, can help you secure lower premiums.
  • Review and Adjust Cover: Regularly review your life insurance coverage to ensure it aligns with your current financial situation.
  • Lock in Rates Early: If you're young and healthy, consider purchasing a life insurance policy as early as possible to secure lower premiums.

Why choose Direct Cover Life Insurance?

It can be hard to know which life insurance is best for your family, but when you choose Direct Cover Life Insurance, your policy will come with a number of features and benefits. Here are just 5 features you can look forward to as a Direct Cover Life Insurance customer:

  1. Cash payout - Get up to $1.5 million life insurance benefit paid to your loved ones (depending on your age when you apply)1
  2. Terminal Illness coverage - Get a 100% early pay out of your life insurance benefit amount if you are diagnosed with a Terminal Illness2
  3. Straightforward claims - Our claims process is designed to be simple, and our Australian-based claims specialists are on hand to help your loved ones with cover backed by an independent, Australian-owned insurer
  4. Immediate cover - You're covered from day one for death and terminal illness1
  5. Easy to apply - Australian residents aged 18-70 can apply with no medical exams, blood tests or complicated forms. Simply answer some health and lifestyle questions, and you're all set

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Ready to get some peace of mind? Direct Cover can help you to protect the life you’ve built for your loved ones, today.

1

From $100,000 up to $1,500,000 of cover available (depending on your age). The benefit amount will not be paid if you die or are diagnosed with a Terminal Illness2 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date. Refer to the Product Disclosure Statement for full details.

2

Terminal Illness is as defined in the Product Disclosure Statement. Upon payment of a Terminal Illness claim, the policy and cover will end.

3

Premiums for a non-smoker are lower than for a smoker of the same age and gender, with the same benefit amount and accepted at standard premium rates.