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When you take out insurance, there are three ways you can pay your premium.
- A stepped premium that is calculated each year in line with your age.
- A decreasing cover where your premium stays the same each year while your benefit varies each year depending on the age of life insured and MLC’s premium rates at the time.
- A level premium that is calculated each year based on your age when the cover commences. Your premiums will only vary if a change is made to MLC’s premium rates.
Why level premiums?
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 you will have to pay 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, please click here.
Want to know more?
Contact your Financial Adviser or click here to contact us.
Disclaimer
The information provided here is for general use only and has been prepared without taking into account any particular person's objectives, financial situation or needs. You should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs. You should obtain financial advice specific to your situation before making any financial investment or insurance decision.
MLC Limited (ABN 90 000 000 402 AFSL 230694) is the issuer of MLC Personal Protection Portfolio.
MLC Nominees Pty Limited (ABN 93 002 814 959 AFSL 230702 RSE L0002998 Trustee of The Universal Super Scheme R1056778) is the issuer of MLC Life Cover Super. MLC Limited and MLC Nominees Pty Limited, both of 105-153 Miller Street, North Sydney NSW 2060, are members of the National Australia Group of companies.
The combined Product Disclosure Statement (‘PDS’) for MLC Personal Protection Portfolio and MLC Life Cover Super provides information about these products. You should consider this disclosure document before making any decision about whether to acquire a policy. A copy of the PDS is available upon request by contacting the MLC Service Centre on 132 652 or you can download it from our website at mlc.com.au.
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