Insurance Glossary

This is a feature of some life insurance policies, which automatically updates your existing policy with new features or benefits offered after your policy was established.

Choosing a Variable Age-stepped (previously known as Stepped) premium structure means that your premiums will be calculated based on your age each year and will generally increase each year on the policy anniversary. Variable age stepped premiums typically start off cheaper than variable premiums, however, increases are typically more significant as you get older.

Choosing a Variable (previously known as Level) Premium structure means that the premium is based on your age when you commence your policy, with the insurer attempting to spread the cost of cover over a number of years. Variable premiums will generally be more expensive than variable age stepped premiums initially, however, may be lower at some point in the future depending on how long you hold the policy.

Most variable premiums will revert to a variable age stepped premium at your policy anniversary around the ages of 65 or 70, depending on the insurer.

The Waiting Period is an agreed amount of time you'll need to be working in a reduced capacity or off work after suffering an illness or injury before you start receiving benefit payments.