Level premiums will not increase every year based on your age, however the premium may increase every year due to increases in policy fees, stamp duty and inflation adjustments.
Advantages
- The premium will not increase every year based on your age; and
- They are cost effective if you hold the policy for a long period of time.
Disadvantages
- The initial cost of the premium is more expensive.
Why a level premium is recommended
- You have long term insurances needs because you have financial dependents;
- You intend on holding your policies for a long period of time; or
- You are young and want to lock in for a cheaper premium now.