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Life Insurance Premium Comparison

Can you get Cheap Life Insurance going “Direct”?

Are you paying double the life insurance premiums you need to?Life Insurance Compare Us To Others

A common misconception is that you will get cheap life insurance if you buy “direct”, rather than through a broker like Insurance Watch.

To debunk this myth, we have obtained life insurance premiums from some of the direct insurance brands heavily advertised on television, and compared these to the cheapest premiums available from the Insurance Watch range of insurers.

The sample quotes below are for a male and a female living in Victoria Australia, aged 40 years old, non-smokers and seeking $500,000 life insurance cover.

The direct insurance brands, rather than being lower in cost, actually have premiums on average more than double those from Insurance Watch!

Male 40 years old and a non-smoker: Monthly Premium Percentage Higher
Insurance Watch cheapest insurer $ 28.59
Allianz Life insurance $ 40.33 41%
AAMI Life insurance $ 55.27 93%
Budget Direct Life insurance $ 57.44 100%
Medibank Life insurance $ 59.30 107%
Insuranceline Life insurance $ 63.24 121%
NRMA Life $ 63.53 122%
Virgin Life insurance $ 68.50 139%
Real Life Insurance $ 68.75 140%
Guardian Life insurance $ 72.70 154%
Woolworths Life insurance $ 76.50 167%
Average: 118%
Female 40 years old and a non-smoker: Monthly Premium Percentage Higher
Insurance Watch cheapest insurer $ 21.80
Allianz Life insurance $ 31.31 43%
Budget Direct Life insurance $ 45.37 108%
Medibank Life insurance $ 46.05 111%
AAMI Life insurance $ 48.26 121%
Insuranceline Life insurance $ 50.22 130%
Virgin Life insurance $ 54.00 147%
Real Life Insurance $ 55.42 154%
NRMA Life $ 55.44 154%
Guardian Life insurance $ 58.60 168%
Woolworths Life insurance $ 61.39 181%
Average: 131%

The above life insurance premium comparisons are accurate as at 4th January 2018 and do not include membership or other discounts. The Insurance Watch quote used is the cheapest of the insurers we compare and the premium shown is also BEFORE the 20%* Insurance Watch Reward offer.

As noted by CHOICE Australia a number of the direct brands listed are actually owned or distributed by related parties. The premiums quoted are often fortnightly rather than monthly premiums, making them appear more affordable.

The 2018 Royal Commission also revealed the high pressure sales tactics used by the call centres of direct insurers. Often this involves keeping the customer on the phone until they agree to purchase, without the opportunity to make price comparisons. When consumers do make these comparisons they often find that the policies are poor value as evidenced by the 1 in 5 who drop their insurance policies in the cooling off period.

Of course, when shopping around you should not just look for the cheapest life insurance option but also consider the benefits offered by each policy. See our tips and traps when buying Life Insurance.

Buying “direct” can mean that your policy will have more exclusions or restrictions due to the limited underwriting done at application time. It also means that at claim time you will not have the support and assistance of a broker like Insurance Watch to act in your best interests.

Insurance Watch provides online comparisons of both premiums and benefits for the insurers we cover.

Click below to start comparing:

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