How much does life insurance cost for a 55 year old in Australia?
Turning 55 is a milestone, and it's a great time to reassess your financial safety net—especially life insurance. Whether your kids are grown, you're nearing retirement, or you're just thinking about future planning, life insurance plays a big role in protecting your loved ones.
But the big question is: how much does life insurance cost at 55 in Australia? Let’s break it down, simplify the confusing jargon, and guide you through exactly what to expect.
Why Life Insurance Matters at 55
Life at 55 often brings new responsibilities—or the continuation of old ones. Maybe you’ve still got a mortgage, want to leave a legacy, or ensure your spouse isn’t financially strained if the unexpected happens. A life insurance policy is peace of mind in a contract.
Common Misconceptions
-
"I'm too old." Not true. Most insurers offer policies up to age 65 or even 70.
-
"It’s too expensive." Also not always true. Premiums vary, and you can still find affordable options.
Average Life Insurance Cost at Age 55
On average, a 55-year-old non-smoking male in good health may pay $90 to $160 per month for a $500,000 term life policy. A female of the same profile may pay $70 to $140.
These numbers change based on your health, lifestyle, and chosen coverage.
Price Ranges by Policy Type
| Policy Type | Monthly Cost (Male) | Monthly Cost (Female) |
|---|---|---|
| Term Life ($500k) | $90 – $160 | $70 – $140 |
| Whole Life ($500k) | $200 – $400 | $180 – $350 |
| Funeral Cover ($10k) | $15 – $30 | $10 – $25 |
Factors That Influence Life Insurance Cost
Health and Medical History
Your medical records are like your insurance report card. If you have conditions like diabetes, heart disease, or high blood pressure, your premiums could rise.
Gender
Women generally live longer, which equals lower risk for insurers—and lower prices.
Smoking Status
Smokers pay way more. Like, up to 2-3x higher premiums. Time to consider quitting!
Type and Length of Policy
Longer terms = higher cost. But more coverage years may be worth it.
Occupation and Lifestyle Risks
If you’re a commercial diver or skydiving instructor, expect to pay more than a librarian.
Types of Life Insurance in Australia
Term Life Insurance
Pays out a lump sum if you die during the term. Most popular and affordable.
Whole Life Insurance
Covers you for life but is far pricier. Better for estate planning.
Trauma and TPD
Pays out if you suffer a serious illness or permanent disability. Often bundled with life cover.
Funeral Insurance
Small payout (e.g., $10K) to cover funeral expenses. Easy to get, no medical required.
Comparing Term vs Whole Life Insurance
Cost Differences
-
Term Life: Cheaper, more flexible
-
Whole Life: More expensive, long-term benefit
Which Is Better at 55?
For most 55-year-olds, term life offers the best balance of coverage and affordability.
Sample Premium Estimates (Male vs Female)
Non-Smoker vs Smoker Comparison
| Gender & Smoking | $250,000 Cover | $500,000 Cover |
|---|---|---|
| Male, Non-Smoker | $50 – $85 | $90 – $160 |
| Male, Smoker | $110 – $190 | $180 – $300 |
| Female, Non-Smoker | $40 – $75 | $70 – $140 |
| Female, Smoker | $95 – $160 | $150 – $250 |
Best Life Insurance Providers in Australia (2025)
Top-Rated Insurers
-
TAL Life
-
MLC Life Insurance
-
Zurich Australia
-
AIA Australia
-
MetLife
Features to Look For
-
Guaranteed renewability
-
Terminal illness benefit
-
Optional add-ons like trauma cover
-
Flexible premiums
How to Get Cheaper Life Insurance at 55
Tips to Reduce Premiums
-
Quit smoking (seriously, it helps)
-
Lose weight if needed
-
Lock in coverage early—rates rise every year
-
Only pay for what you need
Using Comparison Tools
Websites like Canstar, Finder, and Compare the Market let you quickly see side-by-side quotes.
Is It Too Late to Get Life Insurance at 55?
Why 55 Isn’t “Too Old”
You’re actually still in the “sweet spot” age-wise. Many insurers offer new policies up to age 65 or more. So no, you're not too late.
Financial Planning Benefits
-
Protects your partner
-
Pays off debts
-
Leaves a legacy
-
Gives you peace of mind
How to Apply for Life Insurance in Australia
Steps in the Application Process
-
Choose the policy type and provider
-
Fill out the application (online or with advisor)
-
Answer medical and lifestyle questions
-
Undergo medical tests (if needed)
-
Wait for underwriting approval
What Documents You Need
-
ID
-
Medical reports (if applicable)
-
Financial info (e.g., income, debts)
Medical Exams and Underwriting Process
What to Expect
You might be asked for:
-
Blood tests
-
Urine samples
-
ECG or doctor reports
No-Medical Exam Policies
Some insurers offer “guaranteed acceptance” policies. These are easier to get but come with higher premiums.
Common Mistakes to Avoid When Buying Life Insurance
Underestimating Coverage Needs
Many people only consider funeral costs. Think bigger: debts, income replacement, support for your spouse.
Not Comparing Enough Providers
Don’t just go with your bank or super fund. Shop around!
Real-Life Scenarios and Case Studies
John, 55, Non-Smoker
-
$500K cover
-
Pays $95/month
-
Protected family from mortgage debt
Linda, 55, With High Blood Pressure
-
$250K cover
-
Pays $120/month
-
Accepted after a nurse assessment
Life insurance at 55 in Australia isn’t just possible—it’s smart. Whether you’re safeguarding your family’s future or making sure your partner isn’t left with debts, the right policy can give you peace of mind. Prices vary, but if you’re healthy and proactive, you can still lock in a great deal.
So don't wait. Get covered, breathe easier, and move confidently toward retirement knowing your loved ones are protected.