Monthly or Annual Life Insurance Premium

There are many things to think about when deciding to get life insurance. Joint or single policies, fixed term or whole-of-life, decreasing or level term…

 

It's also not like other insurances that you renew every year, most cannot easily be changed.

 

Hopefully our guides have helped steer you in the right direction and you've now found a policy that suits your needs. But then there’s a final question to consider – how should you pay for it?

Paying for life insurance

When you’re comparing life insurance, you can choose how long you agree to pay your premiums for. You can also choose how regularly you pay, such as monthly or annually. 

Advantage of paying monthly

When you pay your premiums monthly you can budget for a smaller amount along with your other household bills. It's a regular payment that you can factor in for the rest of the term so do make sure that it’s a manageable amount. 

Advantage of paying annually

The significant advantage of paying annually is that it’s typically cheaper, so you could save money if you can afford the annual payment.

Consider guaranteed vs reviewable premiums

Whichever payment method you choose, you also need to find out whether or not it’s a fixed payment or not – usually called 'guaranteed premiums'. If it is, you know your payments will be the same for the duration of your policy.

If you choose 'reviewable premiums' because it seems cheaper, be aware that after a while the provider could increase the premium.

Apart from switching to a new policy there's nothing you can do about any increases (if you choose to switch, just be mindful that as you get older your health might decline and it may be more expensive to get a new policy at that point).

Comparing life insurance quotes

Take a good look at your finances and decide which option is best for you. Click the button below to start comparing. Many of the life insurance policies will give you the flexibility to choose different payment options.

There should be plenty of deals to choose from so hopefully you’ll find something to suit your lifestyle and wallet.

Compare life insurance

Get a life insurance quote and start saving now

Get a quote