Level premium

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.
The Dover Group