Example 1 (comminsure)
Male, Age 38, Non Smoker
Qualified Engineer

Income Cover of $6000 month, benefit to age 65, 3 day waiting period on accident, 30 days on sickness and increasing claims, also includes $750,000 life policy

1st year, Monthly stepped premium $160.10, total premiums paid to age 65 will be $162,208

1st year, Monthly Level Premium $279.16, total premiums paid to age 65 will be $87,097

Total savings by choosing Level premium instead of stepped will be $75,111 if policy kept to age 65
(View quotes here)

 

Example 2 (comminsure)
Female, Age 33, Non smoker
Marketing Manager

Life Cover of $750,000 and $150,000 Trauma Plus cover

1st year, Monthly stepped premium $57.56, total premiums paid to age 65 will be $87,224

1st year, Monthly level premium $107.33, total premium paid to age 65 will be $39,926

Total savings by choosing level instead of stepped premium $47,298 if policy kept to age 65
(View quotes here)

 

Example 3 (MLC)
Male, Age 28, Smoker
Qualified Carpenter

Income cover plus of $4000 month, benefit paid to age 65, 3 day waiting period on accident, 30 days on sickness, extra benefits and claims escalation

1st year, Monthly stepped premium $217.35, total premiums paid to age 65 will be $249,690

1st year, Monthly level premiums $277.23, total premiums paid to age 65 will be $115,755

Total savings by choosing level instead of stepped premium $133,935 if policy kept to age 65

(View quotes here)

 

Example 4 (MLC)
Female, Age 31, Non smoker
Administration

Income Cover plus of $3000 month, benefit to age 65, 30 days waiting period on sickness and accident, increasing claims and extra benefits. Also includes $1,000,000 life policy and $250,000 Trauma Plus with Trauma buy back option and life cover buy back option

1st year, Monthly stepped premium $152.65, total premiums paid to age 65 will be $276,565

1st year, Monthly level premiums $230.69, total premiums paid to age 65 will be $94,121

Total savings by choosing level instead of stepped premium $182,444 if policy kept to age 65
(View quotes here)

 

Example 5 (MLC)
Male, Age 36, Non Smoker
Plumber

Income Cover plus of $2668 month, benefit to age 65, 30 days waiting period on sickness, 3 days on accident and increasing claims. Also includes $250,000 life policy and $250,000 Trauma Plus with life cover buy back option

1st year, Monthly stepped premium $166.12, total premiums paid to age 65 will be $257,933

1st year, Monthly level premiums $297.40, total premiums paid to age 65 will be $101,225

Total savings by choosing level instead of stepped premium $156,708 if policy kept to age 65
(View quotes here)

 

Important notes

The above are examples only and you will need to obtain your own comparison of stepped vs level premium costs to see what savings if any you will get with level premiums. Your age, occupation, smoking status and amount and type of cover will affect the stepped and level premium and any possible savings. Level premiums are not guaranteed by the insurance companies and this can affect the potential savings of level vs stepped premiums over a period of time. If an insurance company increases its rates on level premiums they will normally increase the rates on stepped premiums as well.