Insurance premiums usually increase with age because the older you get, the more likely you are to make an insurance claim. For insurance such as Life, Total and Permanent Disability, Income Protection or Trauma cover, you may be able to choose between stepped or level premiums.
Here is the difference between stepped and level premiums:
If you want to control your costs over time then level premiums may suit you. Premiums are higher in the beginning but much cheaper than stepped premiums when you are older. If you intend to hold the insurance for a long time, level premiums are likely to be cheaper in the long run.
Income protection policies should be reviewed every time your income changes to make sure you have the right level of cover.
Whatever insurance you choose, it is important to review your cover against your needs on a regular basis.
At Praesidium Life, we do not charge a fee for our advice or service. We are paid a commission by the recommended insurance company which allows us to provide this service free to you. Please refer to our Financial Services Guide for further information.
Income protection premiums are generally fully tax deductible.
If your Term Life policy is owned separately to your superannuation fund, the premiums are not tax deductible and any proceeds recovered are not considered to be assessable income.
If your Term Life policy is owned by your superannuation fund, the premiums are tax deductible to the fund. Taxation of death benefits depends on who the benefits are paid to.
Everyone’s situation is different so we recommend you ask your independent tax adviser for taxation advice.
No. You are able to cancel your cover at any stage.
You can choose from a range of methods such as credit card or a monthly or annual direct debit.