The way you pay for life insurance is through regular payments, called premiums.
Life insurance premiums vary depending on factors such as the amount of insurance cover you choose, your age, health and occupation.
Insurance generally becomes more expensive the older you are.
The premiums also increase if you smoke, have a history of illness or are employed in a dangerous occupation.
The reason premiums increase in these situations is that there is a higher risk that you’ll die, resulting in an insurance claim.
In some cases, the insurance company may put exclusions on your policy. This means they won’t cover you for certain events.
Life insurance premiums taken outside of superannuation are generally not tax deductible. However, life insurance benefit payments received from a successful claim are generally not assessable to tax.