If the only reason you want life insurance is because you want the mortgage bond covered…then listen up!
If you have been reading my previous posts on age rated and level premiums, you’ll know that each has its own distinct advantages:
- The age rated premium provides a stack of cover at an affordable premium for the budget conscious.
- The level premium costs much more in the beginning but saves you a ton of money in the long run.
So what if we could in some way combine the two?
What if the insurer could offer a level monthly premium for ten (or fifteen) years – then take a jump in premium like the age rated option – and offer another level monthly premium for a further ten (or fifteen) years?
Ideal for home owners with a twenty year bond, wouldn’t you say?
But there is one possible catch!
The premium that you’ll pay at the end of the ten of fifteen years isn’t guaranteed. What you see on your quote is only an estimated premium…and a lot of things can change in ten years wouldn’t you agree?
There’s only one way to find out…
Request a quotation comparing both options:
- one age rated premiums, and the othereed
- stepped premiums.
If the stepped premium option is way cheaper than the age rated option, then just maybe its worth pulling out your stack of old ABBA records and singing that song of theirs. How did the words go again? Something about “Take a chance on me…”
Would I buy insurance using this finance option?
Not really. If you’re going to go to all the trouble of medical tests, then make sure you’re buying life insurance for the long term. Unless there’s a massive savings in the premium offered by stepped premiums, I’d prefer one of the other options. In fact, level is best.
I’m starting to enjoy this so much; I’ve decided to discuss another option with you. So stay tuned for our next post on renewable premiums.