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Age is the single most important factor determining how much you'll pay for life insurance in Australia. Understanding how premiums change across different life stages can help you make informed decisions about when to buy coverage and which premium structure suits your needs.
Life insurance premiums increase with age because the statistical risk of death rises as we get older. Insurers use comprehensive mortality tables compiled by actuaries to calculate these risks, which is why you'll see consistent patterns across the industry: a 45-year-old will always pay more than a 35-year-old, and premiums accelerate as you enter your 50s and 60s.
This comprehensive guide breaks down life insurance costs by age, gender, and smoking status, using real-world premium structures from major Australian insurers. You'll see detailed tables showing how much you can expect to pay at different ages, comparisons between stepped and level premium structures, and practical strategies to reduce your costs.
We've also included insights on occupation ratings, coverage amounts, and the factors beyond price that should influence your decision. Whether you're in your 20s considering your first policy or in your 50s reviewing your existing coverage, this guide will help you understand the true cost of life insurance protection.
Important: This is general information only and does not take into account your individual circumstances, objectives, or needs. You should consider whether life insurance is appropriate for you and seek personal advice from a licensed financial adviser.
The table below shows indicative monthly premiums for $500,000 of life insurance cover from major Australian insurers. These figures represent standard rates for healthy individuals with office-based occupations (AAA rating).
| Age | Male Non-Smoker | Male Smoker | Female Non-Smoker | Female Smoker |
|---|---|---|---|---|
| 25 | $45 | $85 | $35 | $65 |
| 30 | $55 | $105 | $42 | $80 |
| 35 | $70 | $135 | $52 | $100 |
| 40 | $95 | $185 | $70 | $135 |
| 45 | $135 | $265 | $98 | $190 |
| 50 | $200 | $395 | $145 | $285 |
| 55 | $310 | $620 | $225 | $445 |
| 60 | $485 | $975 | $350 | $700 |
| 65 | $760 | $1,530 | $550 | $1,100 |
Indicative stepped premiums based on industry averages. Actual premiums vary by insurer, health status, and occupation. Use our quote calculator for personalized rates from 8 Australian insurers.
What these numbers tell us:
Important note: These are stepped premiums, which increase each year. Level premium alternatives exist (covered in detail below) that start higher but remain fixed for extended periods.
The most striking pattern in life insurance costs is the exponential growth with age. On stepped premium structures, costs typically increase by 7-10% per year, resulting in a doubling approximately every 10 years. A 30-year-old paying $55/month will face $110/month at 40, $220/month at 50, and $440/month at 60.
This exponential curve accelerates after age 50. The decade from 50 to 60 sees premiums more than double, and the 60-65 period shows even steeper increases. This reflects the reality that mortality risk doesn't increase linearly—it accelerates as we age.
Smokers face a significant cost penalty across all ages. At younger ages (25-35), smoking can double premiums. The absolute dollar difference becomes more pronounced with age—while a 25-year-old smoker pays an extra $40/month, a 55-year-old smoker pays an extra $310/month.
The good news: most insurers will reclassify you as a non-smoker after 12 months of being smoke-free. This applies to cigarettes, cigars, pipes, and vaping products containing nicotine. The savings make quitting financially rewarding beyond the obvious health benefits.
Women pay 20-40% less than men for life insurance across all age groups. This isn't discrimination—it's based on Australian mortality statistics showing women have a longer life expectancy (85.4 years vs 81.6 years for men) and lower mortality rates at every age.
The percentage difference is most pronounced in the 35-50 age range, where women's premiums are typically 30-35% lower. The gap narrows slightly at older ages but remains substantial. For a 45-year-old with $500k cover, a woman might pay $98/month while a man pays $135/month—a saving of $444 per year.
Life insurance doesn't scale linearly. The cost per $1,000 of cover decreases as you buy larger amounts, because insurers have fixed administrative costs regardless of coverage amount. This means doubling your coverage doesn't double your premium—it might only increase it by 60-70%.
Choosing between stepped and level premiums is one of the most important decisions you'll make when buying life insurance. The cost difference over a lifetime can be substantial, and the right choice depends on how long you plan to keep your policy.
Stepped Premiums increase each year based on your age. You start with the lowest possible premium, but it rises annually, typically by 7-10% per year. This structure is transparent—you're always paying the current risk-based rate for your age.
Level Premiums stay fixed for an extended period (often to age 65 or 70). You pay more initially—typically 40-60% higher than the equivalent stepped premium—but your rate doesn't increase annually. After the level period ends, premiums convert to stepped rates at your then-current age.
Let's examine a 35-year-old purchasing $500,000 of life insurance cover and keeping it until age 65:
| Age | Stepped Monthly | Level Monthly | Stepped Cumulative | Level Cumulative |
|---|---|---|---|---|
| 35-40 | $70 | $110 | $4,200 | $6,600 |
| 40-45 | $95 | $110 | $9,900 | $13,200 |
| 45-50 | $135 | $110 | $17,100 | $19,800 |
| 50-55 | $200 | $110 | $29,100 | $26,400 |
| 55-60 | $310 | $110 | $47,700 | $33,000 |
| 60-65 | $485 | $110 | $76,800 | $39,600 |
Stepped premiums increase 7-10% annually. Level premiums remain fixed to age 65, then convert to stepped. This example assumes the policy is maintained for the full 30 years.
Break-even point: The level premium becomes cheaper at approximately age 50 (15 years into the policy). Before this point, stepped premiums cost less. After this point, level premiums deliver significant savings.
Total cost to age 65:
Most level premium policies convert to stepped rates after age 65. Here's what many people don't realize: you'll then pay the stepped rate for a 65-year-old, which is significantly higher than what you would have paid had you stayed on stepped premiums all along.
Using our example, at age 66:
The person on level premiums experiences a sudden 745% increase at conversion, while the stepped premium holder has been gradually adjusting to higher rates over 30 years. This can lead to shock and policy cancellations right when you might still need coverage.
Choose stepped premiums if:
Choose level premiums if:
The cost per $1,000 of cover decreases as you purchase larger coverage amounts. This "economy of scale" effect can make buying adequate coverage more affordable than you might expect.
| Coverage Amount | Monthly Premium | Cost per $1,000 |
|---|---|---|
| $250,000 | $65 | $0.26 |
| $500,000 | $95 | $0.19 |
| $750,000 | $130 | $0.17 |
| $1,000,000 | $160 | $0.16 |
Stepped premiums. The cost per $1,000 of cover decreases by approximately 38% when moving from $250k to $1M coverage.
Many people underinsure themselves by choosing smaller coverage amounts to save money, not realizing that doubling their coverage might only cost 60% more, not 100% more. A 40-year-old paying $65/month for $250k could get $500k for $95/month—nearly double the protection for less than 50% more cost.
Practical example: The difference between $500k and $1M cover is often just $60-70/month. If you have a mortgage of $600k, young children, and a working spouse, the extra coverage could be worth far more than the modest additional cost.
While age is the primary driver of life insurance costs, several other factors significantly impact what you'll pay. Understanding these can help you optimize your premiums or explain why your quote differs from industry averages.
Life insurance costs are fundamentally based on mortality risk, which increases with age. On stepped premium structures, expect annual increases of:
This compounding effect is why a 45-year-old might pay 10x more than a 25-year-old, even though they're only 20 years older.
Insurers classify you as a smoker if you've used tobacco or nicotine-containing products in the past 12 months. This includes:
The smoking multiplier varies by age:
Good news: After 12 months smoke-free, you can apply to have your premium reduced to non-smoker rates. Most insurers require a declaration and may request medical evidence. The savings are substantial—a 40-year-old male smoker could save $90/month by quitting.
Australian women live approximately 4 years longer than men on average, and mortality tables show lower death rates at every age. This translates to 20-40% lower premiums:
This isn't discretionary—it's based on Australian Life Tables published by the Australian Government Actuary, which insurers are required to use.
Your occupation significantly affects premiums because some jobs carry higher injury and mortality risks. Insurers use a rating system (typically AAA to D):
AAA Rating (Baseline): Office-based roles with no physical demands or hazardous exposure
AA Rating: Light physical work or minor hazards
A Rating: Moderate physical demands or occasional hazards
B Rating: Heavy physical work or regular hazard exposure
C Rating: High-risk occupations with significant hazards
D Rating: Extreme risk occupations
Important: Your occupation rating is assessed at application and typically doesn't change unless you notify the insurer of a job change. If you move to a less hazardous occupation, you may be able to request a premium reduction.
Pre-existing conditions and health markers affect premiums:
Cardiovascular risk factors:
Weight (BMI-based):
Mental health:
Diabetes:
Larger coverage amounts cost more in absolute terms but less per $1,000 of cover. Additionally:
Bundled covers save money: Combining life, TPD (Total and Permanent Disability), and trauma cover in one policy typically costs 15-25% less than buying each separately.
Benefit options increase cost:
Life insurance is essential financial protection, but there are legitimate ways to reduce your premiums without sacrificing coverage quality.
This is the single most effective strategy. A 30-year-old on level premiums locks in rates that are 30-40% lower than waiting until age 35, and 70% lower than waiting until age 40. Over a 30-year policy, buying at 30 instead of 35 could save over $25,000 in total premiums.
Even on stepped premiums, starting younger means lower costs for at least the first 10-15 years, and you avoid the risk of health issues making you uninsurable.
After 12 months smoke-free, you can apply to be reclassified as a non-smoker. The premium savings are immediate and substantial:
Most insurers require a statutory declaration and may request a GP report or blood test. Budget for the test cost (~$50-150), as it pays for itself within weeks.
Unlike existing policies, new applications are underwritten based on your current health. Strategic improvements can yield significant savings:
Lose weight: Reducing BMI from 35 to 29 could lower premiums by 30-50%. Even modest weight loss (10-15kg) can move you into a better rating category.
Control blood pressure: Get hypertension under control before applying. Controlled BP might add 0-15% to your premium, while uncontrolled can add 50% or result in postponement.
Time your application: If you have a scheduled surgery for a benign condition, apply beforehand. Post-surgery, insurers may add loadings even if the condition is resolved.
Buying life, TPD, trauma, and income protection together (where appropriate) typically saves 15-25% compared to separate policies:
But only buy what you need: Don't add covers you don't require just to access bundling discounts. The savings don't justify paying for unnecessary cover.
Premium variation between insurers for identical coverage can be 20-30% or more. This isn't about quality—different insurers have different risk models and target markets.
What to compare:
Use comparison tools that show quotes from multiple insurers side-by-side. Our quote calculator provides real-time pricing from 8 major Australian insurers, letting you compare both cost and features.
If you only need coverage for 10-15 years (e.g., until your mortgage is paid or children are independent), stepped premiums cost significantly less in total. You'll pay lower premiums throughout and won't keep the policy long enough for the annual increases to exceed level premium savings.
This applies to income protection rather than life insurance, but the principle is worth noting: longer waiting periods (90 days vs 30 days) can reduce premiums by 25-40%. If you have sufficient emergency savings, extending waiting periods is a valid cost-reduction strategy.
If your occupation has changed to a less hazardous role, contact your insurer to request a reclassification. Moving from an "A" rating to "AA" could save 15-20% on premiums. This is particularly relevant if you've moved from physical work to a supervisory or office-based role.
Understanding the full financial commitment of life insurance requires looking beyond monthly premiums to the total cost over decades.
Let's examine total costs for a 35-year-old male non-smoker with $500k cover, maintained to age 65:
Stepped Premium Structure:
Level Premium Structure (fixed to age 65):
Many Australians want to maintain some life insurance past retirement to cover funeral expenses, leave an inheritance, or protect a surviving spouse. Here's what happens to costs:
Ages 65-75 (10 additional years):
Level premiums (convert to stepped at 65):
The message is clear: life insurance becomes very expensive after 65. Most financial advisers recommend having your financial obligations (mortgage, children's education) completed by retirement, allowing you to reduce or cancel coverage and avoid these high costs.
Instead of maintaining expensive insurance past 65, consider:
While price comparison is important, choosing life insurance based solely on the cheapest premium can be a costly mistake. Several policy features significantly affect claim outcomes and long-term value.
Most life insurance policies include a terminal illness benefit that pays out if you're diagnosed with a condition likely to cause death within a specified timeframe. The timeframe varies:
A 24-month definition is significantly more valuable. Many terminal conditions (certain cancers, motor neurone disease) are diagnosed with prognoses of 12-24 months. With a 12-month definition, you might not qualify for the benefit until your condition has significantly progressed.
The premium difference is typically 3-5%, but the benefit difference could be life-changing for your family.
If you're bundling Total and Permanent Disability (TPD) cover:
Own Occupation definitions are far more valuable, especially for skilled professionals. An orthopedic surgeon who loses hand function would claim under Own Occupation but might not qualify under Any Occupation (as they could work in non-surgical medical roles).
Premium difference: Own Occupation costs 10-20% more but provides substantially better protection.
Trauma (critical illness) policies vary significantly in conditions covered:
More isn't always better—focus on definition quality rather than quantity. Key points to compare:
The cheapest premium is worthless if claims are routinely denied or delayed. Research:
A 10-15% premium difference is negligible if it means a 5% higher claim acceptance rate.
Life insurance premiums are based on mortality risk—the statistical likelihood that the insurer will need to pay a claim. As we age, mortality risk increases exponentially, not linearly. A 60-year-old is statistically much more likely to die in the next year than a 30-year-old.
Insurers use Australian Life Tables published by the Australian Government Actuary, which compile national death statistics by age and gender. These tables show that mortality rates roughly double every 7-10 years, which is why you see stepped premiums increasing by 7-10% annually—they're compounding to match the exponential mortality curve.
The acceleration after age 50 reflects the rapid increase in age-related health conditions: cardiovascular disease, cancer, and other chronic conditions become significantly more common in your 50s and 60s.
No—women consistently pay 20-40% less than men for life insurance at all ages. This is based on mortality statistics showing women have longer life expectancy and lower mortality rates at every age bracket.
According to the Australian Bureau of Statistics, female life expectancy at birth is 85.4 years compared to 81.6 years for males (a 3.8-year difference). More importantly for insurance pricing, women have lower mortality rates at every single age from 25 to 85.
This isn't discrimination—it's actuarially-based pricing reflecting real statistical differences. The same principle means women often pay more for trauma insurance (because they're more likely to survive a critical illness) while paying less for life and TPD cover.
Smoking increases life insurance premiums by 50-100%, depending on your age:
You're classified as a smoker if you've used any tobacco or nicotine-containing products in the past 12 months, including cigarettes, cigars, pipes, vaping with nicotine, or nicotine replacement therapy beyond the first 3 months of quitting.
The good news: you can be reclassified as a non-smoker after 12 months smoke-free. Contact your insurer, complete a declaration, and they may request medical evidence (blood test for cotinine). The premium reduction is immediate and permanent as long as you remain smoke-free.
For a 40-year-old with $500k cover, quitting smoking could save approximately $90/month—over $1,000 per year. Over 20 years, that's $20,000+ in premium savings, not counting the investment returns if you invested that money.
Level premium structures lock in your rate for an extended period—typically to age 65, 70, or 75—but not forever. After the level period ends, premiums convert to stepped rates at your then-current age.
This conversion can be jarring. If you've been paying $110/month for 30 years, suddenly facing $820/month at age 66 is a significant shock, even though you've saved money overall. Many people cancel policies at conversion, which is unfortunate if they still need coverage.
Some insurers offer "guaranteed premium rates" that lock in premiums for life, but these are typically 80-100% more expensive than standard level premiums and are rarely cost-effective. The math only works if you're certain you'll maintain coverage until death and you value premium certainty very highly.
Best strategy: Choose level premiums if you plan to keep coverage for 20+ years and understand the conversion that happens at the end of the level period. Plan your coverage to end around retirement (when financial dependents are typically independent and mortgages are paid), avoiding the high costs of post-65 insurance.
See exact premium costs from 8 major Australian insurers based on your age, health, and coverage needs. Free comparison takes 3 minutes.
Compare Quotes NowLife insurance costs in Australia are highly predictable based on age, gender, smoking status, and occupation. While premiums inevitably increase with age, understanding the cost structures allows you to make informed decisions about when to buy, how much coverage to purchase, and whether stepped or level premiums better suit your circumstances.
The most important insight: buying in your 30s rather than waiting until your 40s or 50s can save tens of thousands of dollars over a lifetime while ensuring you lock in coverage before health issues arise. Even a few years' delay can significantly impact both eligibility and cost.
Remember that while cost is important, it shouldn't be your only consideration. Policy features, insurer reputation, and claim acceptance rates all affect whether your family will receive the financial protection you intend to provide. Compare policies comprehensively, not just on price.
Ready to see what you'll pay? Our quote calculator provides real-time premium comparisons from 8 Australian insurers in under 3 minutes, letting you see exactly how age, coverage amount, and policy features affect your costs.
General Advice Disclaimer: This information is general in nature and does not take into account your individual circumstances, objectives, or financial situation. You should consider whether life insurance is appropriate for your needs and seek advice from a licensed financial adviser before making decisions about insurance coverage. Insurance premiums shown are indicative only and may vary based on individual circumstances and insurer underwriting.