It depends on how your premiums are structured. Stepped premiums are based on your age each year, so they start cheaper and rise as you get older. Level premiums are priced on your age when you take out the cover, so they start higher but don't rise with age (they can still rise with indexation of your cover or if the insurer reprices). Level premiums generally only work out cheaper if you keep the cover for a long time, often 10 to 15 years or more.

In this video, McKern financial adviser Shahin Tehrani explains when each option makes sense, why cover you've already been underwritten for won't pick up new exclusions if your health changes (unless you apply to increase it), how default 'unitised' cover in super funds can change its terms, and why he recommends reviewing your insurance every two to three years as your debts, assets and family change.

In this video

0:00 Stepped vs level premiums

1:18 The break-even point

2:05 Does your insurer review your health each year?

3:26 How often should you review your cover?

General information only, not personal advice.