Compare Life Insurance

Life insurance provides a financial safety net for your loved ones if you get seriously injured or sick, become permanently disabled or pass away. Depending on the policy you choose, your family could receive a payout ranging from $100,000 to $5 million or more to help cover immediate and ongoing expenses when you no longer can.

However, with so many options on the market, finding the right life insurance policy can be tricky. Savvy can help you compare quotes from some of Australia’s top insurers, helping you find the right plan for your needs and budget. Get a free quote through us today.

How much does life insurance cost?

There’s no one-size-fits-all price when it comes to life insurance. Premiums are based on a range of personal and policy-related factors, meaning the cost can vary significantly from one person to the next. Here’s are the factors that will typically affect how much your life insurance costs:

• Your age: perhaps the biggest factor in determining the price of your premium. For instance, you can expect to pay a higher premium if you’re over the age of 50 compared to someone who's 30 years old.
• Your sex: men and women may be charged different premiums based on statistical life expectancy and risk factors.
• Your medical history: insurers will want to know about any pre-existing conditions as well as considering factors like your weight and blood pressure. Premiums may also be affected by your family medical history such as cancers and haemophilia.
• Smoking or non-smoking: being a smoker (including vaping, chewing tobacco and using nicotine replacement products) can almost double the cost of your life insurance policy because of the higher risk of disease.
• Your occupation: some occupations, such as law enforcement, firefighting and flying, are seen as more dangerous than others. Insurers will consider your employment history if you seek out life coverage.
• Hobbies and lifestyle: high-risk activities like rock climbing, scuba diving or motorbike racing can increase your premium, as can other lifestyle choices that may affect your health.
• Cover amount: the higher the benefit amount you choose, the more you’ll pay in premiums. Lower cover levels typically come with lower costs.
• Optional extras: adding ‘policy riders’ like child cover, accidental death benefits, funeral cover or rehabilitation support can offer more protection but will usually increase your premiums.

Can I get cheap life insurance?

If you're looking to save on life insurance, there are ways to cut costs without compromising on cover. The first step is to compare quotes from a range of insurers as prices can vary significantly for the same type of policy. Even if you already have life insurance, it’s a good idea to review it from time to time to make sure you’re not paying more than you need. You may also be able to take advantage of discounts and promotional offers when signing up for a new policy.

On top of this, you should check whether you already have life insurance through your super fund. Many superannuation accounts include default cover, so reviewing what's included can help you avoid doubling up on premiums unnecessarily, saving you money in the process.

However, while cheaper life insurance might seem like a good deal upfront, it’s important to make sure it provides the right level of protection. Lower premiums often mean reduced cover or more exclusions, which may not be enough to support your family if something happens to you. Striking the right balance between affordability and adequate cover is key to ensuring your loved ones are properly protected when it matters most.

Types of life insurance

In Australia, there are four main types of life insurance:

Term life cover

Also known as ‘death cover’, this is insurance that pays out a lump sum of money if you are diagnosed with a terminal illness or pass away. This payout may help you cover some everyday living costs, such as mortgage repayments, credit card bills and general day-to-day expenses. It can also help you fund payments you’re expecting to make in the future, such as school fees.

A term life insurance policy offers cover for a limited period, which may be between ten and 30 years or when you reach a certain age, such as 85. Within this window, you or your beneficiaries can file a claim and, if green-lit, receive a payout if you die or are diagnosed with a terminal disease. However, outside the covered term, you won’t be covered and will need to pay for any associated expenses out of pocket.

Total and permanent disability (TPD) cover

TPD cover pays out a lump sum if you suffer a life-changing illness or injury that leaves you permanently disabled and unable to return work. Depending on your policy, this may mean being unable to work in your current job, or in any occupation that suits your education, training or experience. The money can help cover living expenses, medical expenses, house modifications and ongoing care, among other costs.

Income protection cover

If an accident or illness leaves you unable to work for an extended period, income protection cover can help by replacing part of your lost earnings. Instead of a lump sum, it pays out a regular monthly benefit, usually up to 70% of your income, depending on the policy. These payments can continue for a set period – from a few months up to five years – based on the terms and conditions set by your insurer. This type of cover can ease financial stress while you focus on recovery, helping you stay on top of living expenses, bills and loan repayments.

Trauma cover

Trauma insurance is designed to provide financial support if you're diagnosed with a serious illness or suffer a major injury. It pays out a one-off lump sum if you're diagnosed with a covered condition, which can include life-threatening or debilitating illnesses such as cancer, heart attack or stroke. This payout can help cover out-of-pocket medical costs, time off work, rehabilitation, home modifications or anything else you need to aid your recovery.

Standalone vs linked life insurance policies

When choosing life insurance, you’ll have the option to take out cover as a standalone policy or may be able to link multiple types of cover together under one package.

Standalone policies

These are taken out separately, meaning each type of insurance has its own cover amount and won’t impact the others if you make a claim. This gives you more flexibility to adjust or cancel individual policies, and ensures that one claim doesn’t reduce your overall coverage. However, standalone policies usually cost more overall and can be harder to manage, as you’ll need to keep track of multiple policies and payments.

Linked policies

These policies combine different types of lump-sum life insurance – in other words, term life, TPD and trauma – into a bundled package. This can reduce your total premium compared to paying for each one separately and makes managing your cover easier. The downside is that a claim on one policy (such as TPD or trauma) will typically reduce the remaining benefit on your life cover.

To help manage this, some insurers offer a ‘buy-back’ option, which allows you to restore your life cover after a claim. This can come with extra costs and conditions – for example, you may not be covered for the same illness again, such as a recurring cancer diagnosis.

Keep in mind that you will typically only be able to link lump sum policies. For example, you might choose to link your life insurance with TPD and/or trauma cover, or keep your life cover separate while linking TPD and trauma together. However, income protection cover, which pays a monthly benefit rather than a lump sum, generally must be held as a standalone policy.

How are life insurance policies different to your superannuation cover?

Many superannuation funds offer life insurance to their members, and in many cases, this cover is automatically included. But how does this compare to standalone life insurance? Here’s a breakdown of the key features:

	Insurance through super	Standalone life insurance
How it's paid	Deducted from your super balance	Paid from your bank account or credit card
Types of cover	Usually includes term life, TPD and income protection	Choose from term life, TPD, trauma or income protection
Customisation	Limited to what's offered by the fund	You can tailor your cover to suit your needs
Eligibility	May be restricted if under 25 or balance under $6,000	Available to most Australians (subject to approval)
When cover ends	TPD at 65, life at 70 or if the account is inactive for 16+ months	Cover lasts as long as you pay premiums, up to a certain age
Impact on super	Reduces your retirement savings	No effect on your super balance
Cost	Often cheaper due to group pricing	Premiums can be higher
Claim payouts	May take longer and be subject to super rules	Usually faster and paid directly to beneficiaries
Policy control	Limited – terms can change without your input	Full control over features and provider

Which option is better depends on your personal circumstances and how much control you want over your cover. If you have specific needs or want the flexibility to tailor your policy, a standalone policy may be the better fit. On the other hand, if you're comfortable with a more general level of protection and prefer the convenience of automatic deductions, insurance through super could suit your current situation. Just keep in mind that your needs may change over time. If they do, it’s worth reassessing your options — but take care not to double up on cover unnecessarily.

How to compare and find the best life insurance policy

Choosing the right life insurance policy starts with understanding what’s on offer and what you and your loved ones need from it. There are several important features to compare when reviewing your options. Here’s what to keep an eye on:

• Inclusions

  Review what each policy includes and how it protects you. Look out for features like funeral advance payments, worldwide cover, inflation protection and cooling-off periods. These added benefits can vary between insurers, so it’s worth checking what's included as standard.

• Exclusions

  Every policy will have exclusions, such as death by suicide within the first 13 months, injury or death during illegal activity, substance use, or participation in risky sports or travel to war zones. Read the fine print carefully to understand what isn’t covered and whether it aligns with your lifestyle.

• Premiums

  Premiums can differ significantly between providers, so it’s a good idea to get multiple quotes to ensure you're not overpaying.

• Coverage limits

  While some insurance providers offer unlimited term life cover, others have much lower limits – and trauma and TPD policies generally have much lower caps. Consider how much coverage your family would realistically need and compare accordingly.

• Additional benefits

  Some policies go beyond lump sum payouts by offering extras like mortgage assistance, dependent care benefits or discounts for healthy lifestyles. These can add real value, especially if your family relies heavily on your income.

• Waiting periods

  Certain policies – particularly income protection and critical illness cover – come with waiting periods before you can make a claim. This could be anywhere from two weeks to several months. Compare waiting periods carefully to find a policy that matches your needs.

Once you know what you’re after, getting covered is simple. With Savvy, you can compare quotes from trusted Australian insurers in one place. Just provide a few basic details to access a range of offers, choose the policy that suits your needs and complete your purchase online. Get a quick quote.

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