Stepped premiums start lower and increase each year as you age. Level premiums start higher but stay much more stable over time (they still rise with inflation or policy indexation). Over the long term, stepped premiums can end up costing more than level.

In this short video, McKern financial adviser Kristian Tangan also explains what happens to premiums when you claim: life, TPD and trauma are lump-sum benefits, so the policy ends once paid, and with income protection your premiums usually stop while you're on claim.

In this video

0:41 Types of premiums

General information only, not personal advice.