Tips for paying less on your Life Insurance premiums

Having life insurance can give you and your family extra protection against life’s uncertainties, but how can you save on your life insurance premiums? Everyone wants to save more on their insurance, and understanding the factors contributing to premiums can help you obtain competitive pricing, as long as you’re able to make the required lifestyle changes. Use the following strategies to save more on your life insurance premiums, while having peace of mind your family are is protected should an unexpected event occur.

Address common risk factors

Age and gender are common variables used to calculate your premiums, but you can’t do much about these. The same is true of your family’s medical history and your own medical history. However, insurers will assess you on other risk factors such as smoking, drinking, high-risk activities, and obesity when giving you a quote. Check these risk factors to see if they apply to you.


If you’re a smoker, this will likely affect your premiums for all types of life-insurance products. This means you’ll end up paying as much as 45 to 50% more for life cover, total permanent disability, trauma, and income protection.

Consider some of the upsides of quitting smoking, you’ll not only be saving significantly on life insurance; you’ll also save on the costs of the cigarettes themselves.


Losing weight if you’re overweight could help lower premiums if you’re over a given weight range. For example, an insurer could use your BMI – Body Mass Index – to assess your risk profile. If you’re well outside what’s considered the healthy range, you might be paying extra on your life insurance premiums. This is because people who are obese or very overweight are considered more likely to experience health problems at some stage in their lives.

If you find yourself in this category and wanting to make a change to your circumstance, it’s worth noting that once you’re in the healthy weight range, you can contact your insurer and look to have your life insurance premium adjusted. Always seek medical advice about options to lose weight in a healthy way.


Your occupation can affect your life insurance premiums, and in extreme cases, can lead to an insurer declining to provide if you’re in a very high-risk job.4 For example, software engineering might be considered a safe occupation, while firefighting a higher risk one.

Changing your occupation for the sole purpose of reducing your premiums might be unrealistic, but it’s useful to keep in mind how your occupation is affecting your premiums. If you do end up changing from a high-risk occupation to a lower risk one for other reasons, you can expect to pay lower premiums for life insurance.

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High-risk hobbies

High-risk hobbies can lead to higher life insurance premiums or even a refusal of cover. If you’re an adrenaline junkie who loves mountain climbing, skydiving, scuba diving, and other extreme sports, you’re probably paying more for your life insurance, if you can get it at all.

To improve your chances of getting a competitive life insurance package, consider the benefits and savings of giving up those high-risk hobbies.

General health

Staying healthy could help you obtain lower premiums for life insurance. Drinking moderately, following dietary recommendations, and staying active could allow you to improve your health if you have chronic conditions such as high blood pressure.

Other tips for obtaining life insurance

While you can’t do anything about your age, life insurance premiums usually increase with age. Taking out life insurance as a young person allows you to get coverage at a relatively lower cost. So, if you’re still thinking about life insurance, keep in mind it’s cheaper now than it will ever be, all other things equal, and so it’s a good idea to take advantage of it now rather than later.

When to obtain life insurance

Life insurance can be invaluable depending on your age or financial situation. However, you might want to review your life insurance or consider getting it at specific milestones in life.

  • Committing to a mortgage – If you’ve just bought a house or taken on more debt, consider getting life insurance so you’re covered for your financial obligations if you’re unable to work. Having life insurance could be the difference between losing your house or having a home for your family to live in if you’re unable to work.
  • Adding a baby to the family – If you’re adding new members to the family, you’ll have more financial obligations. Life insurance helps ensure you and your baby will be protected in case the unexpected happens or if you’re unable to work.
  • Getting a pay raise – Your lifestyle might change as you start earning more. Reviewing your life insurance to reflect your higher living standards is a good idea.
  • Other changing financial situations – Any other major employment, life, or family milestones should be followed by a review of your life insurance. Make sure it’s up to date and you and your family are appropriately covered.

Life insurance premiums are based on everything from age and medical history, to obesity, smoking, and high-risk activities. For those things that are within your power, it’s a good idea to change some of these factors to lower your premiums. Once you’ve arranged a suitable policy, it’s important to review your life insurance policy regularly to make sure it reflects your changing circumstances.

Real Insurance is an industry-leading insurer, providing award-winning and affordable life insurance to individuals and families. Explore our website to find out more or apply now for a quick quote.

*Premium based on $100,000 benefit for a female, non-smoker aged between 18 and 34.