fbpx

Cheap Life Insurance

Compare life insurance policies with Savvy to help you find the cheapest deal on offer from a panel of leading insurers.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on July 19th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Life Insurance Banner - Young couple lying on the ground while moving house surrounded by boxes

We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

When you’re searching for the right life insurance policy for you and your loved ones, you’re bound to have one eye firmly fixed on the price. While the cheapest option may not always be the best one for your needs, it’s still important to compare offers to help you determine which is the cheapest for your situation.

You can do just that with Savvy. With our partner’s panel of trusted providers behind us, you can consider a range of policies side-by-side. Assess benefit limits, what’s included and what isn’t and the type of insurance that works best for you in one place. Grab a free, no-obligation quote and compare our cheapest offers today.

How do I find a cheap life insurance policy?

There are many ways you may be able to reduce the cost of your life insurance policy. These include:

Pay your premium annually

Your premiums may be cheaper if you pay for them annually, rather than making monthly payments. How much cheaper this works out to be will depend on the insurance you buy and the insurer you choose to go with.

Quit smoking

Quitting smoking can do wonders for your health, but it can also reduce the amount you pay for your life insurance by up to 50% (subject to meeting your insurer’s qualification criteria). If you’re a regular smoker, you run a greater risk of developing cancer and other serious diseases, which can inflate your premium significantly. However, if you’re currently a smoker and decide to quit, it may take up to 12 months or more for this change to be reflected in your premium.

Link multiple life insurance policies

For those holding a TPD or trauma insurance policy (or both) in addition to life cover, linking your policies together may reduce the total cost you pay for your coverage. It’s important to note, however, that payouts made under one policy will impact your other linked policies. For example, a trauma insurance claim of $500,000 being paid out would mean that a linked life cover policy with $2 million in coverage would now be worth $1.5 million (though many insurers will offer a buy back option to enable you to reinstate your cover in the future).

Only pay for what you need

Before you go hunting for a life insurance policy, draw up a rough budget and estimate how much those left behind would need to live comfortably if you were to pass away. There’s no point in opting for the maximum amount of coverage and paying more than you need to if your family can get by on much less money once things like your mortgage and other debts are paid.

It’s important to continually update your policy on this basis; for instance, your kids growing up and moving out of home or your partner moving into a higher-paying job may be cause for you to reduce your sum insured.

Purchase cover when you’re young

Some insurers may offer life insurance coverage to women and men at a younger age than older first-time policyholders due to the fact that their level of risk is lower. If you’re able to secure a cheaper rate when you’re younger, it may save you on premiums as you grow older.

Compare with Savvy

Comparing your choices with Savvy can help you determine which is the cheapest offer available among our partner’s panel of reputable life insurers. Not only can you consider costs side-by-side but also factors such as inclusions, exclusions, claim limits and other further benefits.

What factors impact the price I pay for life insurance?

The price you’ll pay for your life insurance isn’t clear-cut, as multiple factors will impact how much you pay for your policy. Some of these may include:

  • Age: the older we get, the more likely we’ll be to develop serious illnesses and medical complications, so age plays a significant role in determining how much you pay for a policy. As a result, younger people can expect to pay cheaper premiums, while seniors and those over 50 will likely fork out much more for their policies.
  • Lifestyle: hitting the gym regularly may allow you to take out a cheaper policy, while being a smoker or leading an otherwise unhealthy lifestyle will likely mean you pay a higher price for your coverage. Some insurers may look at factors such as your weight, blood pressure and cholesterol, as well as any other risks associated with your condition or habits, when assessing how much you’ll pay.
  • Level of cover: choosing a higher sum insured means you’ll pay more for your life insurance. Make sure you assess your needs carefully to help you avoid overreaching and paying for cover your family may not necessarily need.
  • Employment: part of your risk assessment by your insurer will also take into account your employment. Different positions may be deemed a greater risk of resulting in circumstances which leave you critically ill or injured, permanently disabled or even dead. For instance, a high-rise window cleaner will likely be deemed a greater risk than an office worker.
  • Pre-existing conditions: do you have a pre-existing medical condition? If so, you may pay a higher premium to secure coverage. Some insurers may offer cover for your pre-existing condition if it meets their qualification requirements, but others may charge a loading (additional cost) to cover it or exclude it altogether. This may also apply to those who don’t have any current health issues but carry a family history of hereditary conditions.
  • Stepped or level premiums: stepped premiums allow your insurance costs to start cheaper and increase as you grow older, while a level premium keeps your payment at a steady price for the term of your policy (only rising with inflation and insurer base rates). This may mean that while they’re costlier to begin with, level premiums may be cheaper as you get older. Either way, your decision on which to go with will shape the cost of your premiums.
  • Waiting periods: the longer the waiting period, the less you’re likely to pay for insurance. While most policies are subject to waiting periods, some insurers may enable you to select what these are in certain instances. For example, you can often choose between a period of two weeks and two years when purchasing income protection insurance.

How do I compare life insurance to find the cheapest policy?

When you’re on the hunt for a life insurance policy, you’re no doubt chasing a cheap one which also provides you with comprehensive coverage that suits you and your loved ones’ needs. When you’re comparing with Savvy, here are some of the factors you should consider:

Premiums

As mentioned, the premium you pay for life insurance will vary based on the policy you choose and the insurer you go with, as well as variables relating to you and your lifestyle. Each insurance company will determine your premium in their unique method, but all will employ a set of qualification criteria. When you’re comparing, it’s important to avoid overpaying for your insurance policy.

Type of coverage

There are various types of life insurance, so it’s important to consider all your options so you can determine which is most suitable for your needs. Trauma, life cover, TPD and income protection are the main plans available, while you can also bundle two or more together with the same insurer.

Payout limit

Life insurance’s primary purpose is to financially protect a person and/or their dependents in the event of the policyholder’s death, critical injury or illness or permanent disablement. Different companies will offer different claim limits, as will different types of insurance. For instance, while you may be limited to up to $2 million under trauma insurance and $3 million to $5 million under TPD cover, these may not be the case across the board. It’s important to look for the policy which offers the most suitable coverage for you and your loved ones.

Inclusions

Review quotes for similar coverage with different insurers so you can be more aware of what’s included under a potential agreement. Coverage for advanced funeral expenses, international travel and inflation-proofing are standard in most life insurance plans, although the specifics might vary depending on the provider.

Exclusions

What’s excluded from your policy may depend on your circumstances and can vary from provider to provider, which is why it’s important to compare between insurers. Some of the common exclusions include:

  • Suicide (some may cover this outside the first 13 months)
  • Criminal activity
  • Travelling into active conflict or a warzone
  • Certain pre-existing medical conditions
  • Regularly partaking in dangerous sports

Waiting periods

After acquiring a life insurance policy, it may take some time for the protections to become effective. Depending on the policy, you might have to wait anywhere from two weeks to two years before coverage begins. As such, it’s worth comparing a variety of plans and looking for one with a waiting period that works for you.

Is the cheapest life insurance policy always the best one?

No – while it can be tempting to buy the cheapest life insurance policy you find while you’re comparing, it may cost you in the long run. Your best bet is to find a deal that is affordable but also offers competitive coverage.

Understandably, cheap policies may offer fewer benefits and lower claim limits than more expensive options. It may also cost you long-term if you don’t purchase the appropriate level of coverage. For example, if you buy a cheap policy and pass away, your family may not have access to enough money to comfortably cover your debts without you. This could mean being unable to make required payments, such as on a mortgage or credit card, or just to pay for day-to-day costs.

By taking the time to determine what cover you and your loved ones may need if you pass away, are injured or fall ill, which may involve paying a bit extra in some cases, you can be more confident in the knowledge your family will have enough money to get by should a claim need to be made which is covered under your policy.

Types of life insurance

Why compare life insurance through Savvy?

How do I apply for life insurance with Savvy?

Frequently asked life insurance questions 

Can I claim my life insurance premiums on tax?

If you purchase your life insurance through your super fund, you may be able to claim it as a tax deduction (although your fund will generally do this for you). Life insurance bought outside super generally isn’t tax-deductible; however, income protection insurance benefits can be claimed as a tax deduction inside or outside super.

Is term life insurance cheaper than a whole of life option?

Term life insurance policies are cheaper than whole of life options were, as you’re only paying for a fixed period. Whole of life policies provided you with a lifetime of coverage and the ability to cash out at a certain age. However, whole of life insurance is no longer available in Australia.

Can I save money by taking out life insurance through my super fund?

Purchasing life insurance through your super is generally cheaper than doing so through a specialist life insurance company. However, it’s important to understand how super life insurance works before you sign up. Your premiums are deducted from your super, instead of your savings, and there may be a greater number of qualification requirements in place for your payout to be approved. It’s important to consider your options carefully to help determine which is better for your needs.

Can I get a refund for part of my life insurance policy if I cancel it early?

You can get a full refund from your life insurance provider if you cancel within the cooling-off period, which may be between 14 and 30 days depending on your insurer, and haven’t made a claim under your agreement in that time. However, if you pay your premiums in advance and cancel your coverage before the end of your covered period, you may be eligible for a partial refund of your premium with some insurers.

Is it cheaper to buy life insurance with the same provider as my partner?

Some insurers may offer discounts to couples who are both buying individual life insurance policies with the provider. However, it’s important to compare your options to determine which is the cheapest and most suitable policy for you and your partner.

Helpful life insurance guides

Life Insurance Banner - Parents playing with their children next to their parked car

Benefits of Life Insurance

Find out some of the key benefits of life insurance right here with Savvy. Taking out life insurance is a...

Life Insurance Banner - Senior couple looking at a laptop by the pool

Whole Life Insurance

Find out about whole life insurance and how it worked in Australia right here with Savvy. Whole life insurance (or...

Life Insurance Banner - A woman holding flowers placing her hand on a coffin at a funeral

Life Insurance Claims

Want to find out how to make a life insurance claim? Learn about the process with Savvy today. Understanding how...

Life Insurance Banner - Elderly couple buying life insurance on their tablet

Buying Life Insurance

Find out more about the process of buying life insurance and how to compare offers with Savvy. Making sure your...

Life Insurance Banner - Woman sitting on the couch on her laptop with her dog

Life Insurance Surrender Value

Find out what surrender values are and what your alternatives in Australia are today with Savvy. Life insurance policies with...

Life insurance by your condition & profile

Compare life insurance options aligned to your medical condition and profile and receive no-obligation quotes from some of Australia's leading insurers.

Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

Life Insurance Banner - Young couple lying on the ground while moving house surrounded by boxes

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy Agency Owner and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.