How to Reduce Life Insurance Costs Without Cutting Your Cover | Covermate Life

For many Australians, life insurance is one of the most important protections you can have — but it can also feel expensive, especially as premiums rise each year. The good news? There are smart ways to reduce your life insurance costs without leaving yourself or your family unprotected.

At Covermate Life, we work with multiple insurers (including AIA, MLC, TAL, Zurich, OnePath, ClearView, and MetLife), which means we can compare options and find savings most people don’t know about. Here are some proven ways to reduce your life insurance premiums.

1. Review Your Life Insurance Cover Regularly

Many people set up a policy years ago and never look at it again. But your circumstances change — you may have paid down your mortgage, your kids might be grown up, or your income protection needs could be different.👉 By reviewing your cover regularly, you may be able to reduce the amount insured and lower your premiums.

2. Choose the Right Premium Structure

Most policies in Australia offer:

• Stepped premiums – cheaper upfront, but increase each year as you get older.

• Level premiums – higher at the start, but stay more consistent over time.

If you’re planning to keep your policy long-term, switching to level premiums could save you thousands. A broker can help you calculate what’s best for your situation.

3. Take Advantage of Your Superannuation

Some life insurance policies can be funded inside your super fund. This doesn’t make them “free” (premiums still come out of your balance), but it can improve cash flow since you’re not paying from your pocket.⚠️ Be careful though: super policies often have lower cover amounts and stricter definitions than retail policies. A broker can help weigh the pros and cons.

4. Improve Your Health and Lifestyle

Insurers look at risk factors like smoking, drinking, and your BMI when pricing premiums.

• Quitting smoking can reduce premiums by up to 30–40% after 12 months.

• Maintaining a healthy weight and regular exercise can also help.

5. Bundle Your Policies

If you need more than one type of insurance (Life, TPD, Income Protection, Trauma), bundling them with the same insurer often leads to multi-policy discounts.

6. Shop Around with a Broker

This is where most people save the biggest amount. Insurers price policies differently, and loyalty doesn’t always pay. As brokers, we compare the major insurers for you, highlight the differences, and often find 25–50% savings compared to sticking with an old policy.

Final Thoughts

Life insurance doesn’t need to be a “set and forget” expense. With the right strategy, you can keep your family protected while saving money.

💡 At Covermate Life, our clients are saving on average 25–50% on their existing policies. If you’d like us to review your cover, get in touch today — you might be surprised at how much you can save.