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Level insurance premiums

Discussion in 'Living Room' started by Amaroo, 19th Aug, 2015.

  1. Amaroo

    Amaroo Member

    Joined:
    18th Jun, 2015
    Posts:
    8
    Location:
    Sydney
    For the first time my husband and I have opted for level rather than stepped premiums for Life/TPD/trauma and insurance cover.
    Do you believe it is critical to choose to agree to increase the premium each year to match inflation?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
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    5,588
    Location:
    Sydney or NSW or Australia
    Depends upon how long you expect to live before claiming.
     
    miked likes this.
  3. miked

    miked Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    75
    Location:
    Melbourne
    On the cost sheet I was shown, stepped is slightly cheaper for the first 15 years or so, but then increases exponentially. It is worst at age 64, where stepped is $19,500 compared to 9000 for level.