Stepped

Stepped premiums are more popular because they are lower when you're in your 20's to 40's; higher as you get older. They are the cheapest premiums too.

Level Premiums

Level premiums are fixed over say 15 years, but are more expensive than stepped in the earlier years becoming less expensive in the later years. For people that want long-term coverage with a hedge against rising premiums as they get older, these policies are excellent.

Yearly premium payments versus monthly

While it’s often easier to pay monthly premiums from a cash flow perspective, it’s a good idea to consider paying your premiums yearly. Yearly premiums are cheaper than monthly premiums by approximately 8 per cent.