Have you got the right type of premium for your personal insurance?

If you’re about to take up a new personal insurance policy or perhaps you’re reviewing an existing one, this tip is for you . . .

Opting for ‘Level’ Premiums rather than ‘Stepped’ Premiums could save you money in the long run.
While paying a Level Premium may be more expensive than a Stepped Premium at first, a Level Premium strategy is often the most cost-effective solution for you if you intend holding your insurance cover for more than ten years.

A Level premium is calculated on your age at the time of taking out the policy and the premium remains ‘level’ or fixed– although it will increase with the CPI – throughout the life of that policy.
Stepped premiums are calculated each year according to your age, and usually the premium rises, sometimes substantially, the older you get.

A key consideration of choosing Level premiums is affordability during your middle years of life when your living expenses are high as you manage a growing family and a mortgage. It’s during this time that you need personal insurance to shore up your financial position should you fall ill or meet your untimely demise.

The earlier, or more accurately, the younger you are when you start your policy, the lower the premiums may be. Level Premiums can be a cost effective option for insurance protection in the years where you may need it the most and should be an important consideration in your personal protection plan.

To find out how you can implement an appropriate personal protection plan that suits your specific circumstances contact us on 07 3233 6470.

The information provided is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.

Liberum Financial and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 Australia Credit Licence No 357306 trading as Fortnum Financial Advisers.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only – unless otherwise stated. Liberum Financial strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances.

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