Stepped Vs Level

Pay a little more in the beginning and save thousands over your life time.

If you know you will be holding on to your insurance for at least 14 years or more than Level premiums, whilst more expensive at the start, will be cheaper over the long term.

Compare Stepped Vs Level premiums with ease

At Find Insurance, we have made it easy for you to compare and acquire insurance cover with some of the largest and most established companies in Australia.

In Australia, there is a real issue with under insurance.  An ASIC report was conducted and it found that a lot of Australians who had held Stepped premium insurance cover were more likely, compared to those holding Level premium insurance cover, to reduce or cancel their personal insurances after the age of 55.  The main reason being that premiums started to become unaffordable after the age of 55 whereas if they had been paying Level premiums over the same period they may have held on to the insurances for a longer period of time.

As such, ASIC now requires all financial advisers to adequately explain to all clients, who wish to acquire personal insurance cover, what the difference is between Stepped versus Level premiums.

It is now mandatory that all clients, when requesting a quote, should receive a comparison table outlining the initial Stepped vs Level premium costs and the cumulative cost of holding insurances over a period of time. 

What is the real cost of holding Insurances?

The cost of personal insurance is different for each individual.  This is because the cost is calculated based on several factors: occupation, age, sex and the are you live in.

To help you understand the difference and potential savings you might achieve if you were to choose Level premiums compared to Stepped premiums, we have supplied some examples on the right for you.

The top table represents an Osteopath and the bottom table represents an Electrician.  The tables display how much it would cost each of them to acquire $1,000,000 of Life cover and $500,000 of TPD cover today, (all other factors being equal).  

Each table displays the 1st year premiums as the cumulative premiums each year.  Both tables show that if the Osteopath and Electrician were to hold on to their insurances for more than 14 years they would be better off being on Level premiums compared to Stepped premiums.