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Life Insurance

How much does life insurance cost?

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Whether you’re lucky enough to have already discovered your life’s purpose or are still searching, we can all agree that life is special and doesn’t last forever.

The fact that life is finite makes our experience meaningful, and it’s also what can make having life insurance (also known as life cover) important. If something were to happen to you, it can be helpful to consider what would happen to your debts and whether your family would have enough money to get by.

But what is life insurance? How much life insurance do you need? And to address the elephant in the room, how much does life insurance cost? Many factors influence the cost of your premium. Because of this, it can be difficult to put a definitive number on it without considering a handful of your life factors. Read on to find out everything you need to consider regarding the cost of life insurance, including where you can make savings on your premium.


What affects the cost of life insurance?

When you get a life insurance quote, it can be good to understand how life insurance costs are calculated. Here are some of the key factors determining how much your life cover could cost.


Your life insurance policy

As with nearly all forms of insurance, there are varying levels of cover you can choose for your life insurance policy. As you’d expect, each level of cover will cost a different amount. It makes sense, given that everyone’s financial circumstances are unique. Some factors that could impact your life insurance policy include:


The cost of your life insurance policy could be as low as two cups of coffee a week. On the flip side, it could be a bit higher if you have specific needs. If you’re unsure whether your current cover is right for you, it may be helpful to talk to a Financial Adviser


Your age

As you’d expect, the risk of claiming on your policy increases as you get age. As we get older, our likelihood of illness may increase. Another age-related aspect that can affect the cost of your life insurance is how old you are when you first sign up for life insurance.

As we get older, many of us develop new health issues that we didn't have when we were younger. If you sign up before you develop these pre-existing conditions, you won't have to pay any extra to be covered for them - unlike someone who signed up for life insurance after already developing health conditions. The takeaway? It’s never too early to start thinking about life insurance.


Your biological sex

You may have heard the saying "women live longer than men". While we don’t want to debate whether this is true or not, there are risk factors relating to your biological sex that could affect the cost of your life insurance. Did you know: 

  • heart disease can occur in women slightly later in life as a result of menopause
  • men often engage in behaviours that can result in high rates of injury or sometimes death
  • women are more likely to have a stroke due to their estrogen levels
  • men are more likely to get skin cancer as they more commonly work outside.


Your health

Speaking of health factors, your overall personal health is one of the more obvious aspects that could contribute to the cost of life insurance. Some points to consider are:

  • do you have any underlying health conditions
  • have you had a serious illness previously?
  • do you have an illness that runs in your family?


All of these factors can impact the cost of your premiums. Essentially the higher your risk, the likelihood that your premium will be higher. You can try to mitigate this with an overall healthier lifestyle.


Your lifestyle

Although some aspects of personal health are out of our control, your lifestyle can also have a significant impact on your health and the cost of your life insurance premium. It may be helpful to start by thinking about your current lifestyle on a scale of 1 - 10. Try asking yourself questions like:

  • how healthy do you think your life is?
  • consider whether you generally take care of yourself
  • do you exercise regularly?
  • do you eat well?
  • do you smoke?
  • does your occupation or hobbies put you in danger?


Lifestyle can play a big part in your overall health and how much your life insurance will cost.


Can you afford life insurance?

One of the best places to start when considering whether you can afford life insurance is to talk to a Insurance Adviser. These Advisers are experts in getting you the best possible cover for your unique situation and budget. Another helpful thing to do is create a budget for all of your finances. This will help you see where you're spending your money, where you might have some flexibility, and where you can make savings. A way to help reduce the cost of your life insurance is to understand how it’s calculated and how you can reduce what you have to pay. Read our guide for more top tips on budgeting your finances


How are your premiums calculated?

There are many moving parts when calculating your life insurance premium. When speaking with your Adviser about the process of getting life insurance, they'll take you through a risk assessment. As part of this assessment, you'll be asked a series of questions. This process is known as underwriting and will focus on the health and lifestyle factors we’ve already covered.

Once your Adviser has the information they need and you’ve decided your amount of cover and waiting period, your premium will be determined. It’s common to receive a policy designed uniquely for you, as your circumstances will differ from everyone else. Having a more flexible cover like Chubb Life Assurance Extra can be perfect for you and your family. Or, if you’d prefer an instant quote and more basic cover, Chubb LifeOne® life insurance might be all you need.


How can you make life insurance more affordable?

For some people, the extra expense of life insurance can be a bit worrying. While there are some aspects of your cover that you can’t change, there are several factors that you can have some control over. Here are some ways you can try to reduce the cost of your life insurance.


Live a healthier lifestyle

As we’ve covered already, your health and lifestyle can impact your life insurance premium. Luckily, by leading a healthier life, you can try to help lower your premiums. Consider positive changes like:

  • eating healthier
  • exercising more
  • reducing riskier activities like mountain climbing or skydiving


Review your current outgoings

If you don’t stick to a regular budget, you can quickly lose track of how much you’re spending. This isn't helpful when you’re trying to factor in the cost of life insurance. It may be beneficial to take the time to review your expenses to identify areas where you can be smarter with your spending. It’s a lot easier to save money when you create a budget. Otherwise, for more budgeting tips, talk to an Insurance Adviser. They'll help you choose a premium option that is within your means.


Quit smoking

For some, quitting smoking can be a quick albeit hard-fought win. There are plenty of statistics that point to smoking causing future health problems. Quitting smoking could be a double whammy in that you save money on cigarettes and possibly reduce the costs associated with the underwriting process. It may be tough to quit, but many resources are available to help you


Discuss discounts with your Adviser

Insurance Advisers are there to talk you through the insurance process and provide you with the best options for your unique needs. It can be good to ask your Adviser about possible deductions or discounts. If you have multiple insurance policies, they may have some helpful deals.


Review your insurance cover

Just like how you should ask your Insurance Adviser about discounts, it can also be beneficial to assess your current level of cover regularly. Evaluating your level of cover often could make sure that you’re not paying for cover you don’t need. For example, if your kids have flown the nest and are working, changing your cover could be an idea. There are independent online resources available to help you assess your current insurance.


How to get life insurance?

For most people, life insurance can provide the freedom to live life worry-free. Knowing that your loved ones would be looked after financially if something happened to you can be an empowering feeling. There are varied life insurance options available from a range of suppliers.

To make sure you find the best life insurance option for you, it can be helpful to talk to an Insurance Adviser (sometimes called a Financial Adviser). They can help get you the right level of cover to fit your budget. You can find out more about Chubb Life Insurance options to get started. Remember, it's never too early for Life Insurance, and it might not be as expensive as you think.

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Still not sure

More than just life insurance

The right life insurance can you bring peace of mind from knowing that you've protected what matters most.