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Does Age Matter in Life Insurance Comparison?

According to statistics, only 36% of young Australians hold some form of life insurance cover. Findings conducted by The CommInsure Life Insurance Survey shows only half of Australia’s population is currently insured, which highlights the country’s significant underinsurance crisis.

As stated by CommInsure’s General Manager, 50% of Australian families would be forced to rely on government support if a family member were to die or develop a terminal illness.  This is a worrying fact, because this sort of government assistance may be insufficient in meeting the needs of affected family members. Hence, purchasing life insurance policy is something to consider, as it is part of an individual’s responsibility to see that his or her family is financially protected when the unexpected arises.

How Age Matters

In purchasing life insurance, age does really matter as the general rule of thumb stipulates that younger buyers tend to pay lower premiums. This is based on the assumption that younger buyers are healthier than older purchasers. In a nutshell, the best time to get a life insurance policy at a good price is when you are young and healthy, preferably in your twenties. Your life insurance policy will become handy later in life.

Equipping yourself for life’s uncertainties

For many people in their twenties, getting an insurance policy is not their top priority. Buying a car and travelling are top in their to-do lists as they think that they have a long road to travel before retirement, and they are full of health and energy and hence have a drive for adventure.

Statistics have shown that only 15% of young couples carry coverage for crucial illness, while about 85% insure their property and its contents and their cars. This indicates that the majority of young people overlook the fact that their lives are as essential as their possessions to be insured. Being disabled as a result of a sporting activity or dying young rarely crosses young people’s minds.

In such unforseen circumstance, who is going to repay the money borrowed for tertiary education, the car loan or even the credit card debts you owe? Purchasing an insurance policy in your twenties may not only mean that you pay cheaper premiums later in life, but also makes you prepared for the unexpected so your parents or spouse will not have to carry your financial burden. Buying life insurance becomes even more of a consideration if you have children, a mortgage and loans.

Health benefits while young

As discussed earlier, the main reason to get a life insurance policy when you are young is that you may be at the healthiest time of your life. The older you get, the more likely you are to be diagnosed with chronic health problems such as arthritis, diabetes or high blood pressure, depending on your lifestyle and diet. These health issues may drive up the costs of your life insurance premiums. Hence, to save yourself and your family financial stress later in life, it may make sense to get life insurance while you are young, bearing in mind the escalating cost of education and increasing mortgage interest rates.

Adopting a healthy lifestyle while young

Of course health and lifestyle are also important factors to consider when you compare life insurance. We cannot take our health for granted while we are young. Adopting a healthy lifestyle such as regular exercise and taking on a healthy diet will help you save in the long run if your good health is maintained when you reach your fifties. Abstinence from smoking and excess alcohol consumption may also influence your choice of cover and hence your premiums.

It goes without saying that we plan for the big things in life such as our weddings, buying our first homes and having children, but we rarely prepare ourselves for death or disability as they are considered taboo. Moreover, we live in a fast-paced world so much so there is little time to reflect on our lives and think of the what-ifs.

We tend to overlook the need to prepare ourselves for unexpected life-changing events that may affect our families. Just like the adage ‘Prepare the umbrella before it rains’, it is sensible to prepare for the worst to ensure that our loved ones are financially protected. Hence, strike while the iron is hot. Take advantage of your young age when it comes to getting a life insurance policy to save in the long run.

Here’s How You Do It:

Step 1: Select your lifestage below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 10 of Australia’s largest insurers. You may also be entitled to a free consultation.'s online quote comparison tool makes it easy to get quotes from 10 Australia's biggest life insurers