What Drives the Price
Life insurance premiums are priced individually based on age, gender, smoking status, occupation, health history and the sum insured you choose — there's no single 'average' premium the way there is for car or home insurance, but cost patterns are consistent and predictable.
Income Protection Costs by Age (Non-Smoker)
Why Premiums Rise So Sharply With Age
Premiums climb steadily through your 30s and 40s, then rise sharply from around 45 onward as underlying health risk increases with age. This pattern holds across life, TPD, trauma and income protection alike, which is exactly why buying earlier — even cover you don't feel you need yet — is one of the most effective ways to lock in a lower lifetime cost.
Other Major Cost Factors
- Smoking status: smokers typically pay 38–58% more than non-smokers across all four product types
- Gender: women generally pay more than men at equivalent ages for income protection and trauma cover, reflecting differing claims statistics
- Occupation risk class: a desk-based professional pays meaningfully less than a tradesperson or someone in a physically hazardous role
- Stepped vs level premium structure: the biggest single lever — see our dedicated guide on this
The Comparison Payoff
Comparing quotes across insurers for genuinely equivalent cover can cut the cost of identical protection by up to 50% — the gap between insurers for the same person and same cover is often larger than most people expect.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, occupation and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.