Life Insurance Comparisons

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Stepped vs Level Premiums


Stepped or level life insurance premiums are calculated based on your age, meaning the younger you are the cheaper the cost.


Level Premiums - You will initially pay more for a level life insurance premium  compared with a Stepped Premium policy, at least for the first 6 to 8 years. By around year 7 you will start to pay the same had you taken the stepped option from the start and then after another 6 years you will be in-front and saving on a level premium option.

Level Life Insurance Premiums

You may not be able to afford your insurance premium when you are around the age of 45 to 55. This may be because you initially chose a Stepped Premium earlier in life, thus making it expensive later in life.


So the obvious occurs – you decide to cancel your life insurance policy, only to find a few years or months later that you need to claim and think what a waste of premiums! 

 

 

Initially when we see insurance premiums we can be misled in thinking the cheaper Stepped premium option is the better choice. However if you look deeper, Level premiums can provide a greater long term saving and in many cases can save you up to 50% of the total amount of insurance cover paid over your life time.


Feel free to also ask our qualified staff for a comparison on Stepped or Level Life Insurance premium options. Call us on 1300 135 205.