Multiple factors contribute to the cost of your insurance premiums. These include how much cover you choose to take out as well as specific attributes such as age, gender and other personal risk factors. You can read about these and more below.


Factors which contribute to the cost of premiums

  • Age and gender

    As you get older, the risk of certain events becomes more probable, and your premiums are calculated to reflect this.

    There may also be a difference in premiums for males and females as risks associated with a gender change over time. For example, females have a higher life expectancy than males and are less likely to have fatal accidents at younger ages, so female’s premiums can often be lower at older and younger ages for Life cover.

  • Pre-existing medical conditions

    You're more likely to claim if you have pre-existing or hereditary medical health conditions. The premium we calculate reflects that risk and would have been considered when you first applied for your insurance.

  • Work and lifestyle choices

    If you have a dangerous job or hobby, your premium will be higher than someone who doesn't. Lifestyle choices such as smoking can also increase your premiums.

  • What you're covered for

    The cover types you have on your policy (Income Protection, Total and Permanent Disability, Critical Illness and Life Cover) and the amount you’re insured for contribute to the cost of your premium.

    To see what you’re covered for, head to and view your latest annual renewal notice and policy schedule.

  • Premium structure

    Stepped premiums increase more steeply as you age. Each year, premium changes reflect the increased likelihood of you claiming as you age. While the cheaper initial cost compared to level premiums is the main advantage of this structure, the cost of your cover over the lifetime of your policy may be higher.

    Level premiums* spread the premiums’ costs over your policy’s life. Premiums are higher in earlier years and lower in later years than stepped premiums, which increase as you age.

    Regardless of structure, your premiums may vary if we change our premium rates, or the sum insured changes, either by voluntary increases, or indexation.

    *Up until 2 February 2024, we offered stepped and level premium structures. We have since discontinued level premiums for new MLC Insurance and MLC Insurance Super policies. If your policy was current on 2 February 2024, you can still switch between stepped and level premium structures.

  • Inflation proofing
    Inflation proofing increases the amount you’re insured for annually in line with the cost of living. While inflation proofing maintains your policy’s value over time, it also increases your premiums. If you want to opt out of inflation proofing for the year ahead, log in to or call us on 13 65 25.
  • Waiting periods and benefit periods for income protection
    The length of waiting and benefit periods you select on your Income Protection insurance influence the cost of premiums. Shorter waiting periods and more extended benefit periods will typically increase premiums and vice versa.
  • How you pay your premiums
    How you fund your insurance, and the frequency of your payments can impact the cost of your premiums. For example, if your insurance premiums are funded via an external rollover payment from your super, you may be eligible for a 15% super tax rebate. Paying annually upfront rather than in monthly instalments can also lower your premium.
  • Other factors
    Stand-alone cover, linked cover, and the number of lives insured are factors that can affect your premium. Where you live may also influence your premium, as government stamp duty fees vary among states.



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