How much does Life Insurance cost?

Last updated: July 2026

Key takeaways

• There isn't a single cost for life insurance in Australia. Premiums are generally based on your individual circumstances and the cover you choose
• Factors such as your age, health, smoking status, occupation, hobbies and cover amount may all influence the premium you're offered
• Different policy features and premium structures may also affect how much you pay over time, depending on the product and policy terms
• Understanding what insurers typically consider when assessing premiums can help you better understand how life insurance is priced
• Real life insurance calculator can help you estimate how much cover you may need based on your circumstances before requesting a quote

The cost of life insurance in Australia varies from person to person. The premium you're offered will generally vary due to a range of factors: your age, health, smoking status, occupation, the amount of cover you choose and other personal circumstances.

Understanding what influences the cost of life insurance can help you feel more informed when comparing your options. While it's not possible to estimate the cost without considering your individual circumstances, this guide explains the factors that may affect your premium, answers common questions and shows you how to estimate your cover using Real Insurance’s life insurance calculator.

Related: How much life insurance do I need?

What is a life insurance calculator?

A life insurance calculator is an online tool that helps you estimate the amount of life insurance cover your family may need. By analysing your income, debts, family size, and future costs like funeral expenses, it gives you an estimate of the cover amount you likely need. This helps take the guesswork out and helps you have peace of mind your dependants are supported financially if the unthinkable happens.

Estimate your life insurance premium

Because life insurance premiums are calculated using your individual circumstances, there's no single price that applies to everyone. A personalised estimate can give you a clearer idea of what your cover may cost based on factors such as your age, lifestyle and the amount of cover you're considering.

Real Insurance's life insurance calculator can help you estimate how much cover you may need and understand how different choices could influence your insurance needs. It's a practical starting point if you're beginning to explore your options before requesting a quote.

What affects the cost of life insurance?

Life insurance premiums are calculated using a range of personal and policy-related factors. Insurers assess these factors to better understand the level of risk associated with providing cover, which means your premium can vary from one person to another.

While every insurer has its own underwriting process, there are several common factors that may influence the cost of life insurance. Understanding these can help you better understand how premiums are determined.

Your age

Your age is one of the factors that may affect the cost of life insurance. In general, premiums are often lower for younger applicants because they are typically considered to present a lower level of insurance risk than older applicants.

As you get older, the likelihood of making a claim generally increases, which may be reflected in the premium you're offered. Your premium may also change over time. Always refer to the Product Disclosure Statement (PDS) and policy terms to understand how premiums are calculated and whether they may change during the life of your policy.

Your gender

Gender is one of several factors that may affect the cost of your life insurance. Generally, premiums for males are higher than for females because, on average, females have a longer life expectancy. According to the Australian Bureau of Statistics, females born in Australia between 2022–2024 can expect to live to around 85.1 years, compared with 81.1 years for males. Insurers take this, along with other factors such as age, health and lifestyle, into account when calculating premiums.

Your health and medical history

When you apply for life insurance, you may be asked questions about your current health and medical history. This information helps insurers assess your application and determine the premium that may apply.

Factors such as existing medical conditions, previous illnesses or other relevant health information may influence the outcome of your application. Based on your circumstances, this may affect the premium you're offered or the terms on which cover is available.

It's important to answer all health questions accurately and completely when applying for life insurance, as this information forms part of the assessment process.

Your smoking status

Smoking is another factor that may affect the cost of life insurance. Because smoking is associated with a higher risk of certain health conditions, people who smoke may be offered different premiums to those who don't.

If your smoking status changes, it's important to understand how this may affect your policy. Check your policy documents or speak with your insurer if you have questions about your individual circumstances.

Your occupation and hobbies

Some jobs and recreational activities may involve a higher level of risk than others. For example, working in certain industries or regularly participating in higher-risk activities may be considered during the underwriting process.

Where relevant, these factors may influence the premium you're offered or the terms of your cover.

Your cover amount and policy options

The amount of cover you choose is another factor that can influence your premium. Generally, selecting a higher level of cover will result in a higher premium because the potential benefit payable under the policy is greater.

Depending on the product, you may also have the option to include additional features or select different premium structures. These choices can affect how your premium is calculated and how it may change over time. Before choosing a policy, consider reading the PDS and policy terms so you understand the available options and how they apply.

Related: What may affect life insurance premiums and eligibility?

How different life circumstances may affect premiums

Life insurance premiums are personalised, so two people applying for the same amount of cover may not receive the same premium. Rather than relying on average prices, it can be more helpful to understand how different circumstances may influence the cost of life insurance.

The examples below are illustrative only. Actual premiums depend on a range of factors, including your individual circumstances, the cover you choose and the insurer's underwriting assessment.

These examples are intended to show how common factors may influence life insurance pricing. They are not estimates of what an individual will pay and should not be used to compare insurers or policies.

Related: What does life insurance cover?

Ways to manage the cost of life insurance

While some factors that affect life insurance premiums, such as your age or medical history, can't be changed, there are steps you can take to better understand your options and choose cover that suits your circumstances.

• Review how much cover you need: Choosing a level of cover that reflects your financial commitments, and personal circumstances may help ensure you're paying for the cover that's appropriate for your needs. If you're unsure where to start, a life insurance calculator can help you estimate how much cover you may need.
• Understand your premium options: Depending on the product, you may be able to choose between different premium structures (e.g. steeped or level premiums). Understanding how these work can help you compare your options and how premiums may change over time. Refer to the PDS for details.
• Review your cover as your circumstances change: Major life events, such as buying a home, starting a family or paying off debts, may change the amount of cover you need. Reviewing your policy from time to time can help ensure it continues to reflect your circumstances.
• Provide complete and accurate information: Providing complete and accurate information when applying for life insurance helps insurers assess your application based on your individual circumstances. This can also help avoid delays during the application process.
• Read the Product Disclosure Statement (PDS): Before taking out life insurance, it's important to understand what the policy covers, any exclusions or limitations that may apply, and how premiums are calculated. Reading the PDS can help you make a more informed decision.

If you're comparing your options, remember that the cost of life insurance is only one consideration. It's also worth looking at the level of cover, policy features, eligibility criteria and the terms and conditions so you have a clear understanding of what the policy provides.

Related: Life insurance vs term life insurance

Learn more about life insurance

Learn more about Real Life Insurance and whether it may suit your unique circumstances. When you’re ready, you can also request a quote so you can weigh your options before deciding on what works for you and your family.

Frequently asked questions about the cost of life insurance

How much should I pay for life insurance?

The amount you pay for life insurance will be based on your individual circumstances and the level of cover you choose. Factors such as your age, health, lifestyle and cover amount can all influence the premium you're offered. If you're unsure how much cover you may need, using a life insurance calculator can be a helpful starting point.

Can life insurance premiums increase?

Yes, life insurance premiums may increase over time, depending on the type of policy you have and its premium structure. Premiums may also change if you make certain changes to your cover. Before taking out a policy, check the PDS and policy terms to understand how premiums are calculated and whether they may change over time.

Do life insurance premiums increase with age?

They can. As people get older, the likelihood of making a claim generally increases, which may be reflected in the premium for some policies. Whether your premium changes with age will be subject to the policy's premium structure and terms. Refer to the PDS for information about how premiums apply to your chosen policy.

Can I get life insurance with a pre-existing condition?

It may be possible to get life insurance if you have a pre-existing medical condition, although your application will usually be assessed based on your individual circumstances. This may affect the premium offered or the terms on which cover is available. When applying, it's important to provide complete and accurate information about your health.

Can I get life insurance through my super?

Some Australians may have life insurance through their superannuation fund, while others choose to apply for a policy outside of super. The available cover, eligibility requirements and policy features can vary between providers and products. If you're considering life insurance through super, it's important to understand how it works and whether it meets your needs and circumstances.

Related: Life insurance with super vs direct vs via broker