An Example of the Power of Level Premiums
Bill Smith born 12/12/1987. 31 years old.
Let’s give him level life cover $200,000 until the age of 80 and level trauma cover $150,000 until the age of 70.
The premium for the life cover is $ 48.40 /month. Ageing will not increase this premium until he is 80!
The premium for the trauma cover is $62.28 /month. Ageing will not increase this premium until he is 70!
This will save Bill THOUSANDS OF DOLLARS over the years.
The best way to see this is to look at the chart of how the premiums will normally go up for Bill if he doesn’t have level premiums.
Dialing down into the numbers, when Bill is 55 he is only paying $48.40.
If he was paying stepped premiums he would be paying $83.69 / month.
At age 65, he is still only paying $48.40, as opposed to $288.14!
At age 75, you guessed it, he is still only paying $48.40 as opposed to $994.88!
Level Trauma Cover
It’s the same thing for level trauma as well.
The premiums don’t go up and thus you can afford cover for longer.
When you think about it you are going to need trauma more in your 60’s than your 40’s all things being equal.
Once again, you are saving thousands, and keeping your insurance longer
The premiums payable for the policy and frequency of those payments for each of the available benefit and payment options are set out in this illustration. However, the illustration set out in this quotation is only to be used as a guide. It is based on your requested cover and the information provided. In preparing this illustration it has been assumed that: current premium rates remain constant, and there has been no change in your cover, your personal details or circumstances, payment frequency, policy terms, or relevant tax rules. Premiums are reviewed annually and if any of these factors change then actual premiums payable may be different. This projection is only to be used as a guide. The figures and graphs in these premium projections may include inflation adjustments. Whilst all care has been taken by Asteron Life Limited to ensure that this projection is accurate and correct, we take no responsibility for any errors or omissions. This projection is intended for use by advisers as a comparative tool and does not form the basis of a quote.