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


Factors which contribute to the cost of premiums

  • Age and gender

    As you get older, the risk that you’ll experience certain events rises, 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 increases in 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 1300 450 316.
  • Waiting periods and benefit periods for income protection
    The waiting and benefit periods you select on your Income Protection insurance influence the cost of premiums. Choosing a shorter waiting period or more extended benefit period will typically increase your premiums, while having a longer waiting period and shorter benefit period can reduce your premiums.
  • How you pay your premiums
    How you fund your insurance, and how often you pay can affect 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 also factors that can affect your premium. Where you live may also influence your premium, as government stamp duty fees vary among states.


Steps you can take

There are several ways you can adjust your policy benefits and premiums. You can change your waiting period on your Income Protection insurance, alter your level of cover, review the benefits you may be paying extra for, or change your payment frequency. Improving your health by stopping smoking can also reduce your premiums.

Contact us today if you’d like to learn more about your options to manage your cover and premiums.


Get in touch

If you’d like help from an Insurance Coach, you can call our team on 1300 450 316, 8.30am-6pm, Monday to Friday (AEST/AEDT) or email

Alternatively, you can book an appointment with an MLC Life Insurance Coach today:


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