Life Insurance Cost Per Month: What Australians Really Pay
One of the most common search queries in the industry is “life insurance cost per month” — and for good reason. Australians want clarity, predictability and transparency when it comes to life insurance pricing. The reality is that life insurance cost in Australia varies widely depending on age, health, lifestyle, smoking status and the type of policy you choose. But with the right information, you can find affordable cover that protects your family without stretching your budget.
The average life insurance cost per month in Australia for a healthy non-smoker is typically between $20 and $140, depending on age and coverage amount. Younger Australians pay the least. A healthy 25-year-old may pay around $20 to $25 per month, while a 35-year-old may see premiums between $30 and $40. As age increases, premiums rise due to higher medical risk. By age 55, non-smokers generally pay between $90 and $140 per month.
Smokers pay more — often significantly more
because smoking increases the likelihood of long-term health problems. A 25-year-old smoker may pay around $35 to $45 per month for life insurance, while a 35-year-old may pay between $55 and $70. By age 45, smoker premiums can reach $100 to $150 per month, and by age 55, costs may fall between $180 and $250 monthly. This gap highlights why insurers differentiate pricing and why many smokers choose to compare multiple providers to find the best rate.
Many factors influence your monthly life insurance cost.
Age is the biggest driver, followed by smoking status, occupation, weight, blood pressure, cholesterol levels and family medical history. Your monthly premium also depends on the amount of coverage you choose. Someone insuring for $250,000 will pay less than someone insuring for $1 million. The structure of your premium affects cost as well: stepped premiums start lower and rise each year, while level premiums cost more upfront but offer long-term savings.
Australians can reduce the cost of life insurance per month by comparing multiple insurers rather than choosing the first quote they receive. Pricing can differ by more than 50% between providers for the same person and cover level. Other cost-saving strategies include choosing the right cover amount, reducing unnecessary add-ons, quitting smoking, bundling life insurance with TPD or trauma cover and maintaining a healthy lifestyle. For many, reviewing their policy every one to two years also leads to savings because insurers regularly adjust their pricing models.
Understanding what your monthly premium includes is important. Most policies cover death, terminal illness, and may offer funeral advances or optional TPD and trauma cover. Many Australians focus on premium cost alone and overlook the value of definitions, exclusions and built-in benefits. This can leave them underinsured or paying more than they should. Comparing policies properly — not just prices — is essential.
When assessing life insurance cost Australia-wide, keep in mind that cheaper is not always better. What matters is whether your policy pays when your family needs it most.
That’s why Covered Life helps Australians look beyond the price tag and choose cover that offers real security and long-term value.
Life insurance cost per month doesn’t have to be confusing.
With the right advice and access to a broad range of insurers, you can secure affordable, meaningful protection for your family. Covered Life is here to guide you through every step — from comparing insurers to tailoring your cover — so you can protect the people who matter most with confidence.
