Blended life insurance premiums

As you may know, insurers give you the option on how to structure your insurance life insurance premiums.

Most insurers usually offer either stepped or level life insurance premiums; however some select companies in Australia also offer 'blended life insurance' premiums.

Standard life insurance premium types in Australia

Previously there were two main types of life insurance premiums in Australia. These included stepped premiums and level premiums. Each premium type offer both pro's and con's depending on your situation.

Stepped premiums - this is where your premiums increase with your age. As you age, your level of risk increases, which is why your premiums slowly increase as you grow older.

Level premiums - this is where your premiums stay the same until age 65. After turning 65, your premiums switch to a stepped style life insurance premium.

In response to the increased level of competition in Australia, select companies are now also offering 'blended life insurance premiums' as an alternative to stepped and level premiums.

What is a blended life insurance premium?

A blended insurance premium is an alternative to stepped or level premiums. It tries to combine the advantages of both types of premium into one.

A blended premium usually begins with a stepped premium, then at a certain age, switches to level premium (contains the blended premium option in the price).

It is important to note that only a select number of insurers in Australia offer blended life insurance premiums.

What do blended life insurance premiums mean for you?

Blended premiums are competitively priced and offer an affordable choice to stepped and level life insurance rates. It can provide exceptional long-term savings over standard stepped life insurance rates.

How do blended life insurance premiums work?

You can firstly take advantage of an affordable increasing premium rate (stepped premiums) in the first 10 years, followed by a fixed premium rate (level premiums) to age 60.

If an insurer does offer blended premiums, it is typically available across term life , trauma and TPD insurance. Blended premiums are not typically available for income protection insurance Australia.

The usual entry age for a blended life insurance product is 25 to 50 years.

Who offers blended life insurance premiums in Australia?

To find out which insurer in Australia offers blended life insurance premiums contact xLife today. We can help you find the best policy for your situation and ensure it is structured correctly, whether it is stepped, level or blended premiums.

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's life insurance premium.

May 2010