life insurance

Understanding life insurance costs in Australia

9 August 2023

Life insurance provides a benefit to your loved ones if you become terminally ill or pass away. By taking out a life insurance policy, you give your family (or other nominated beneficiaries) added peace of mind knowing they’re taken care of financially if you’re no longer around to support them.

Suncorp Life Insurance policy pays a lump sum benefit of up to $1.5m if you pass away or are diagnosed with a terminal illness. This can help ease the financial burden on your family during a difficult time and help them cover expenses such as funeral costs, outstanding debts, and ongoing living expenses.

Factors that can influence the cost of a life insurance policy

Several factors, like your age, gender, occupation, health, lifestyle and any pre-existing medical conditions, can influence the cost of your life insurance premium. The level of cover you choose will also impact the cost of your policy.

When you apply for life insurance, it’s important to be honest and accurate when answering questions about your lifestyle, general health and medical history. Your answers to these questions help us asses your policy accurately in terms of risk. We can then determine which coverage suits your needs and how much your premiums will be.

When taking out life insurance, you have the option to add on Optional Severity Based Illness cover. While it may increase your premiums, it will offer additional coverage for specific health conditions such as cancer (meeting certain criteria), stroke (resulting in neurological deficit), or heart attack (meeting certain severity requirements).

Life insurance premiums explained

Life insurance premiums are the regular payments you make to keep your policy active. When we calculate the premium on your life insurance policy, we’ll consider a number of factors including:

  • Your occupation: a low-risk job is likely to attract a lower premium than a riskier, more dangerous profession.
  • Your age: it’s common to see life insurance premiums increase as you age.
  • Your medical history: pre-existing conditions and a family history of certain medical conditions can influence the cost of your policy.
  • Your lifestyle: decisions around smoking, alcohol consumption and exercise impact your long-term health and wellbeing, and therefore your policy premium.

All of the above, along with other considerations like your gender, the policy term and the level of cover you take out, are reviewed when we’re putting your policy together and calculating premiums.

When considering a particular life insurance policy, it’s important to consider more than just the insurance costs of the premium. Make sure you carefully review the terms and conditions stated in relevant the Product Disclosure Statement. This information defines any exclusions, waiting periods and any other aspects that could impact the coverage of your policy.

Calculating your life insurance needs

But what coverage is best for you? To determine this, consider your financial situation, lifestyle, and income. Assess factors such as age, debts, financial assets, and the impact of your income on your household budget.

If you have a family, it's important to consider how their financial situation would be affected if the main income-earner passes away.

The Suncorp Life insurance calculator can help you determine your life insurance needs.

If you’re ready to take out life insurance or if you have any questions for our Suncorp Life Specialists, give Suncorp Life a call on 13 11 55. You can also get a quick quote online.

Get a Life Insurance Quote

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Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, are provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL Life is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies are not part of the Suncorp Group. TAL companies use the Suncorp brand under license.

Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement.

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