What is the difference between Stepped and Level Premiums?
NobleOak’s range of Life Insurance products use stepped premiums. This means your premiums will increase each year with your age.
The annual premium increases because the risk of you needing to make a claim grows greater with age. It might increase up to about 2% per year if you’re under 30, but as you approach middle-age, the increase in your premium will rise to a greater percentage of about 5-7% per annum. It sometimes increases more than this.
In addition, your premium will increase each year to guard your cover against inflation. This helps ensure your level of cover remains relevant to your needs. You do have the option to stop the indexation of your cover if you prefer, in which case any rise in your premium will only be due to your increasing age.