this is daily

how much does life insurance actually cost? (+ ballpark premiums explained)

Oct 28, 2025
Guest
Phil Thompson
Phil Thompson, a financial adviser from Skye Wealth, dives deep into life insurance, tackling the intricacies of pricing. He outlines the various factors affecting premiums, such as age, health, and occupation. Through practical examples, Phil shares insights on life, TPD, trauma, and income protection quotes. He emphasizes the importance of tailoring coverage to individual needs and demystifies why Australian policies are comparatively generous. Listeners learn how tax and super can effectively reduce out-of-pocket costs.
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INSIGHT

Many Factors Drive Premiums

  • Premiums depend heavily on occupation, sex, smoking, health history and age so ballpark figures vary widely.
  • Phil warns you can't give a meaningful price without those personal details and cover levels.
ANECDOTE

Personal Quote Example

  • Phil shared his personal quote: $1m life, $1m TPD, $150k trauma and income protection on $150k salary.
  • He pays $1,730 p.a. via super and ~$30 per month personally, totalling just under $2,400 net per year after tax effects.
ADVICE

Work Backwards From Need

  • Do base cover on individual needs (debts, existing savings and super), not a blanket multiple of income.
  • Get actual numbers, compare prices and then tweak cover levels rather than cancelling or keeping everything unchanged.
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