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How much is a Life Insurance Policy going to cost me

In Australia there is only one type of life insurance offered to people of all ages and this type of policy is known as term insurance. However, the cost of insurance cover depends on various factors such as the smoking status of the person applying, the age of the person applying and if the buyer has any pre exiting health conditions that can put his life in danger.

Smokers are placed in the high risk category since smoking is known to cause many problems such as heart disease, lung cancer and chronic respiratory problems. People with hypertension, diabetes and other health conditions are also placed in the high risk category. People who are 50 years or older are also placed in the high risk category and people in the high risk category can expect to pay 25% more than people in the low or medium risk category.

A buyer who does not smoke, has no known pre existing health conditions, is in good physical shape and is in his 20s – 40s can expect to pay $20 – $30 a month on insurance. Buyers, who smoke, consume alcohol, are not in good shape and have diabetes, hypertension, heart problems or other medical conditions can expect to pay $30 – 40 monthly. The cost of the life insurance policy also depends on the benefits selected.

While applying for the insurance, buyers have an option to opt for either monthly or yearly premiums and they can also opt for stepped or leveled premiums. People can save some money by opting for stepped premiums but it is important to note that when a buyer opts for stepped premiums he will enjoy low premium rates for the first few months, however as he grows older he will have to pay higher premiums. In most cases stepped premiums are preferred by people who opt for short term plans where as leveled premiums are preferred by people who buy plans that have a tenure for 5 years or more.

Buyers who want to save money on insurance should not only consider quitting habits like smoking but also look online for life insurance quotes and compare multiple quotes before getting insurance. By comparing quotes online buyers can save both time and money since this allows buyers to understand which policy is best for them and which policy offers both the lowest premiums and the most benefits.

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