Affording insurance for the long term

When you take out insurance, there are three ways you can pay your premiums:

1. A level premium based on your age when your cover commences. Your premiums will only vary if a change is made to MLC's premium rates.
2. A stepped premium that increases as you age.
3. A decreasing cover where your premium stays the same each year while your benefit varies each year, depending on your age and MLC's premium rates at the time.

Level premiums, a cost-effective option

While stepped premiums are usually lower in the early years, level premiums can be a more cost-effective option if you continue the insurance over a longer period.

The earlier you commence your cover on level premiums, the cheaper the total cost of premiums over the long term.

The following graph illustrates the differences between the costs of stepped premiums and level premiums in the long term.

For further information on stepped and level premiums, view our brochure How to Purchase Insurance Cost-effectively.

For a premium quotation, get in touch with a financial adviser or call MLC on 132 652. For general enquires email us at insurance_customer_service@mlc.com.au.

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